Canara Personal Loan EMI Calculator - Jul 2017

Factors affecting Canara Personal Loan EMI

• Borrower age should be between 21 years to maximum 60 years.
• Maximum personal loan amount offered by Canara Bank is upto Rs. 300,000.
• Interest rates range from 13.65% to 13.65% depending upon customer profile, loan amount and other factors.
• Processing fee in Canara Bank may be 0.50% of loan amount.

Canara Personal Loan EMI

• Personal Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to Canara Bank against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
• With Canara Bank offering Personal Loans with loan tenure upto 4 years, the loan EMI can be as low as Rs. 2,715 per lakh, to make it more affordable and convenient to meet your personal needs. Rate of interest offered by Canara Bank are as low as 13.65%.
• This EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, the principal component keeps increasing and on the other hand the interest component keeps reducing.

Canara Bank Personal Loan calculator formula

P*r* (1+r)^n/([(1+r)^n]-1)

Here is an illustration of how Canara Bank Personal Loan EMI is calculated:

In above formula,

P = Loan amount. This can range from Rs. 100,000 to Rs. 300,000

r = Rate of interest per month. Current rate is 13.65%

n = tenure in month. For Canara Bank, this can be 48 months

Personal loan EMI calculator Canara - How it works?

• Canara Bank personal loan calculator calculates EMI considering a combination of loan amount, interest rate and loan tenure.
• Canara Bank personal loan calculator considers “reducing balance basis” and assumes that payment of EMI is made in arrears (means interest is charged for the month preceding the EMI payment date) and not in advance.

Personal Loan EMI - EMI Changes in case of prepayment

In case you prepay your personal loan, the outstanding balance on your personal loan reduces. Canara gives you two options:
• Reduce your loan tenure and keep your personal EMI same
• Reduce the amount of EMI and keep your loan tenure same
It is better to keep the EMI constant and reduce the loan tenure as you pay less interest to the Canara in this option.

Frequently Asked Questions on Canara EMI Calculator