If you take a loan of Rs 5 lakh from HDFC Bank, then how much EMI will have to be paid every month? Complete accounts of 3, 4 and 5 years in simple language

Sometimes in life, we all suddenly need money. Sometimes for children’s education, sometimes for a wedding at home, and sometimes for some medical emergency. At such a time, taking a personal loan from a bank seems to be a common and easy way. Getting a loan from a big bank like HDFC Bank has also become easier than before. But in the happiness of taking a loan, the most important question that we often forget is – “How much money will go out of my pocket every month?” If you have decided to take a loan of Rs 5 lakh, then it is very important to know that your EMI (monthly How much will be the installment? Come, let us understand this entire mathematics in very simple language. What is this EMI after all? EMI means ‘Easy Monthly Installment’. This includes both a small part of your loan and the interest charged on it. The bank gives you Rs 5 lakh at once and you repay it little by little every month. This is EMI. It is important to understand this so that your household budget does not get disturbed. 3, 4, and 5 year EMI plans on a loan of Rs. 5 lakhThe calculation of EMI depends on three things – the loan amount (₹ 5 lakh), the interest rate (it varies, we are assuming 12% here for example), and the time to repay the loan. Plan 1: When the loan has to be finished quickly (3 years / 36 months) If you want to get rid of the burden of the loan quickly. If you can afford it, then the 3-year option is the best.Advantage: The loan ends quickly and you have to pay less interest overall.Disadvantage: The monthly installment is a little higher, which can make the monthly budget tight. Estimated EMI: Around ₹ 16,600 per month. Plan 2: When to take the middle path (4 years / 48 months) This is for those who neither want to pay too high EMI nor want to keep the loan for too long. Want to withdraw.Advantage: EMI burden gets reduced a bit, thereby saving more money for monthly expenses. Disadvantage: A little more interest has to be paid than the 3 year plan. Estimated EMI: Around ₹ 13,200 per month. Plan 3: When you have to pay less money every month (5 years / 60 months) If your monthly income is limited or you have other expenses, then this plan puts the least burden on your pocket. Advantage: The EMI is significantly reduced, due to which you can easily repay the installments. Disadvantages: Loan lasts for the longest time, hence you have to pay the highest interest in total. Estimated EMI: Approx. ₹ 10,900 per month. See the complete calculation at a glance Loan repayment time per month EMI (approx.) Total out of pocket (approx.) 3 years (36 months) ₹ 16,600₹ 5.98 lakh (Interest: ₹ 98,000) 4 years (48 months) ₹ 13,200 ₹ 6.33 lakh (Interest: ₹ 1.33 lakh) 5 years (60 months) ₹ 10,900 ₹ 6.55 lakh (Interest: ₹ 1.55 lakh) (This calculation is based on the assumption of 12% per annum interest rate. EMI may change slightly as per the bank rate.) Which plan is right for you? 3 Year Plan: If you have a good salary and you hate debt, then choose this. 4 Year Plan: If you want a balance between EMI and savings, then this is for you. 5 Year Plan: If you have more responsibilities and want to manage the monthly expenses comfortably, then choose this. The most important thing before taking the loan is to think about whether you will be able to repay the EMI on time every month? There is a penalty for missing even one installment and your CIBIL score is bad, which makes it difficult to get loan in future. Always spread the sheet as long as your legs are.