Central Bank of India Personal Loan EMI Calculator

Central Bank of India, a truly Swadeshi Bank, was the first commercial bank of India that was owned and managed by Indians. It was established in 1911 and has ever since confronted all challenges by converting every challenge into a business opportunity. The bank continuously introduced innovative banking products and services that continued even after the bank was nationalised in 1969. The bank caters to Corporate, Retail as well as MSME Sectors and has products to suit every sector.

One of the popular loan products that help individuals overcome financial constraints is the Cent Personal Loan Scheme. The bank offers secured as well as unsecured personal loans. The ease with which it is available makes it convenient for salaried individuals to take advantage of the loan option in case of emergencies. The maximum quantum provided under the Scheme is Rs. 10.00 lakhs at a rate of interest starting at 12% and with a repayment period of 48 months.

The debt to income ratio stipulated is 40%. If you have to calculate the EMI to fit your budget considering the 40% ratio after taking into account the proposed EMI along with your other existing obligations, you can use the Central Bank of India Personal Loan EMI Calculator to aid easier decision making. 

Calculating the EMI that fits your monthly disposable income while keeping in mind the debt to income ratio of 40% is essential to avoid rejection of the loan application. You can do the calculation using the Central Bank Personal Loan EMI Calculator.  But how to use the calculator?

Follow the instructions given below and use the calculation any number of times till you arrive at the affordable EMI the easy way.

• Access the official website of the bank.
• Choose Cent Personal Loan Scheme under the ‘Loans’ option.
• On the Cent Personal Loan Scheme page, you will find several icons to the left of the page. Choose the ‘Loan EMI Calculator’ icon.
• Enter the details of the loan amount, interest and tenure to get the EMI within seconds.
• You can try various combinations of the loan amount and tenure until you arrive at the EMI that fits your pocket.

Having knowledge of the rate of interest charged for the personal loan is not enough to decide on the loan amount you wish to borrow. You should also know how expensive the loan would be for a chosen period. You might opt for a longer tenure to make the EMI comfortable in your pocket without understanding the fact that the higher the tenure, the higher will be the cost of the loan. To get an awareness of this, you will have to calculate the interest that will be collected for the personal loan you are about to apply for. The formula applied for the calculation of the interest is P x R x (1+R)^N] / and [(1+R)^N-1]  
Where the

• P is the Principal or Sum of Loan
• R is Interest Rate
• N is Tenure of Loan

You can use this Central Bank Personal Loan EMI calculator for the calculation. You will not only get the EMI amount with the formula but also the total interest payable for the tenure chosen and the loan amount to be borrowed. On knowing the cost of the loan, you can decide to manage the loan amount, tenure and rate of interest in such a way that the EMI is affordable while the cost of the loan is minimized.

Personal loans are the best and easy solution for all your financial requirements. If you have a good relationship with your existing banker, there are all chances of your being eligible for a Pre-approved Personal Loan. Even otherwise, the online application facility has made the availability of personal loans very easy and fast as well. With the flexible repayment options and attractive interest rates available in the market for a personal loan, it is obvious that you will look for a personal loan at the drop of a hat.

Availing of a personal loan is easy, but you should be able to repay the loan also with the same ease for the tenure chosen without going through any financial stress. So it is essential to know the probable EMI before applying for the loan so that you can plan your finances throughout the loan tenure to accommodate the EMI in your monthly income. The Central Bank of India Personal Loan EMI Calculator will help you with the calculation. The other added benefits of the Central Bank Personal Loan EMI Calculator are:

Helps in arriving at the affordable EMI with various combinations: The three main factors, i.e., the loan amount, rate of interest and tenure, play a very significant role in determining the EMI. You can try different combinations of the rate of interest, loan amount and tenure to arrive at the EMI that does not burn a hole in your pocket.

The Personal Loan EMI Calculator helps you in doing the calculation several times without much effort. By doing so, you can avail of a loan amount for a tenure that will result in an EMI that can be serviced with the available resource without disrupting your existing lifestyle.

Gives accurate results: A manual calculation of the EMI with the complex formula is prone to errors. The EMI calculator eliminates these errors to give a 100% accurate result.

Ease of access: The Personal Loan EMI Calculator being an online tool, can be accessed from anywhere and at any time, and the operation of the calculator is also very simple. You do not need any extra qualifications to operate the tool. All you would need is an internet connection.

Helps maintain the credit score: By calculating the EMI that is within your budget prior to applying for the loan, you will be able to manage your expenses to ensure the payment of the EMI promptly. Without missouts of EMI, you will be able to maintain your Credit Score at a high level.

Quick turnaround time: The Personal Loan EMI Calculator will give the results in a few seconds after providing the required input.

The following are the reasons why the Central Bank of India Personal Loan EMI Calculator should be used.

Quick results: What takes tons of time if calculated manually can be done within seconds using the Central Bank Personal Loan EMI Calculator. The result will be given within a few seconds of providing the input.

Understanding loan specifics: With the State-of-art technology, the EMI Calculator gives a graphic representation of the details of the loan according to the provided input. This makes the understanding of the total cost of the loan vis a vis the EMI chosen.

Accuracy and speed: Manual calculation of the EMI is time-consuming and prone to errors. The same calculation done using the Central Bank of India Personal Loan EMI Calculator gives 100% accurate results within no time.

Universal access: The online tool can be accessed across the globe at any time, irrespective of Sundays and holidays. So you can do the EMI calculation at the comfort of your home or workplace and anywhere in the world.

If you have to make the best of the available plans under the Personal Loan Scheme, you should make a comparison of the EMIs of various banks for different interest rates. Interest rates vary from lender to lender as there is no uniform policy for charging interest on loans. 

The RBI will fix the benchmark rate, and the interest rates should not be below the benchmark. However, the spread on the benchmark rate differs from lender to lender depending on the individual credit policy and profitability. So you will have to look for an interest that would translate into an affordable and economical EMI. 

Here are the various EMIs of the popular banks in comparison to EMI of the Central Bank of India for different amounts and for a repayment tenure of 36 months. Use this Central Bank Personal Loan EMI Calculator to make the comparison if you have to do it yourself.

The rate of interest mentioned here is the starting rate. The Personal Loan Rate of Interest varies with client-specific factors like the credit score, repayment capacity, relationship with the bank. If you decide on the lender after studying the comparative chart, you should approach the lender to get the exact rate of interest chargeable to you, considering the factors that affect the rate of interest. If you cannot afford a higher EMI, you should be looking for lenders who provide a longer repayment term. Some of them provide a tenure of up to 60 months that could be beneficial for individuals looking for a lower EMI.

Availing of a personal loan is your choice, and deciding on how much to borrow to be able to make the payment promptly is also your choice. You will have to consolidate all your existing obligations and statutory payments and arrive at the disposable income.

The disposable income should be 40% of the gross income after providing for the proposed EMI as per the Central Bank of India Personal Loan Eligibility Norms. You should make the calculation by trying various combinations with the loan amount and tenure till you arrive at the EMI that fits your budget. You can use the Central Bank Personal Loan EMI Calculator to do multiple times calculation without much effort.

The main factors that affect the EMI of Central Bank of India Personal Loan are:

Rate of interest: Every lender specifies the rate of interest-based on the internal rating and credit score of the borrower. If the ratings are good, then the interest rate will be lower and keeps increasing as the scores go down. The higher the interest rate, the higher will be the EMI, and the lower the interest rate lower will be EMI. You must check before applying for a personal loan to find the lender who is offering the best rate to keep the total cost of the loan lower.

Loan amount: The loan amount is based on your repayment capacity and monthly income. The loan amount will be proportionate to certain times the monthly gross income provided the debt to income ratio is 40% to 50% of the gross income after providing for existing liabilities, statutory bills and the proposed EMI. The higher the loan amount, the greater is the EMI and the lower the amount, the lower will be the EMI. You can try different combinations of the loan amount and tenure to arrive at the EMI that is affordable.

Tenure: Tenure is the repayment period that is provided for repayment of the loan. It will range from 12 months to 60 months for a personal loan. The EMI is inversely proportional to the tenure. The higher the tenure, the lower will be the EMI and vice versa. But you should also understand that a higher tenure will prove dearer as it will increase the overall cost of the loan. So, you can opt for a higher tenure initially to accommodate the EMI within the disposable income and make periodical prepayments to cut down on the interest cost by reducing the tenure.

The Personal Loan EMI Calculator will tell you about the EMI that you will have to pay for the loan you are availing of. It will also give you details of the total interest payable for the chosen tenure. But it will not tell you about the other charges like the processing charges, prepayment charges and delayed penalties.

The banks will charge processing charges at the time of applying for the loan or at the time of disbursing the loan amount, and the charges will be 0.50% to 3% of the loan amount, depending on the lender. A prepayment charge will be collected for the periodical repayments that will be made at 2% to 5% of the outstanding loan amount or the prepaid amount, depending on the lender.

Also, if there are any EMI missouts, delayed penalties at 2% of the EMI amount for the delayed period will be collected. All these also add up to the cost of the loan. The details regarding these charges have to be obtained from the respective banks as the Central Bank Personal Loan EMI Calculator will not tell you about these charges.