Prefr Personal Loan EMI Calculator

An Equated Monthly Instalment (EMI) is the fixed amount you need to repay every month towards your Prefr Personal Loan. The EMI calculation considers the principal amount, interest rate, and loan tenure to provide an estimate of your repayment schedule.

EMI Calculation Formula

The EMI is calculated using the standard mathematical formula:

EMI = P x R x (1 + R)N / (1 + R)N-1

Where:

• P = Principal Loan Amount

• R = Monthly Interest Rate (Annual Interest Rate ÷ 12 ÷ 100)

• N = Loan Tenure in Months

Example EMI Calculation

Here’s an example to illustrate the EMI calculation for an L&T Finance Personal Loan:

• Principal Amount: ₹3,00,000

• Interest Rate: 18% p.a.

• Loan Duration: 36 months

Understanding the factors that affect your personal loan EMI can help you plan your finances better and manage repayments efficiently. Here are the key elements that influence your loan EMIs:

Loan Amount (Principal) 

A higher loan amount can result in higher EMIs, while a lower loan amount can reduce your monthly repayment obligation.

Interest Rate 

The loan EMI differs based on the interest rate, with lower rates leading to reduced monthly payments and higher rates increasing the cost of borrowing.

Loan Tenure 

A longer tenure can lower your EMI but increases the overall interest paid, while a shorter tenure can result in higher EMIs but with lower interest costs.

Credit Score 

A good credit score can help you secure lower interest rates, which can reduce your EMIs, while a poor score leads to a higher repayment amount.

Income and Employment Stability 

Higher income and stable employment can improve your loan eligibility and may result in lower interest rates, which can help reduce your loan EMI.

Existing Debt Obligations 

A high debt-to-income ratio may increase interest rates, which can lead to higher EMIs, while minimal debt allows you to secure better terms.

Lender-borrower Relationship 

A healthy relationship with the lender, such as holding an existing account, can sometimes lead to better lending terms and lower EMIs.

Type of Interest Rate 

Fixed interest rates remain constant throughout the loan tenure, whereas floating interest rates fluctuate based on market conditions, which can affect your EMI.

Part-payment and Foreclosure 

Making part-payments or foreclosing a loan before the tenure ends can reduce EMIs and interest costs, though prepayment penalties may apply.

Pay your Prefr Personal Loan EMI on time to maintain a good credit score and to avoid any late payment charges. Prefr offers several payment methods to help you pay your EMIs in a hassle-free manner. Here are some of the common ways to pay your personal loan EMI:

Auto-debit Facility 

Consider setting up an auto-debit mandate to ensure that your EMIs are deducted automatically on the due date, which can prevent you from missing payments.

Mobile Banking App 

Use the mobile banking app to make quick and secure EMI payments from anywhere and to get an instant payment confirmation.

Net Banking 

Log in to your bank’s net banking portal to transfer the EMI amount directly to your loan account.

UPI and Digital Wallets 

Prefr allows EMI payments through UPI apps or digital wallets, offering a convenient and instant payment option.

NEFT/RTGS Transfer 

If you prefer bank transfers, you can pay your EMI using NEFT or RTGS by adding Prefr as a beneficiary.

Post-dated Cheques 

Prefr accepts post-dated cheques for EMI payments, especially for borrowers who prefer a manual payment method.

Branch Payment 

Visit the nearest branch to make your EMI payment through cash, cheque, or demand draft.