Benefits Of Using An EMI Calculator
Generally, people consider loans a quick solution to urgent financial needs. Due to today’s technology, one needs a few hours to apply for loans. It’s now a paperless, digital process. But before applying, consider a few factors first. It helps you to get cheap deals too. First, check interest rates and repayment procedures. Use a personal loan EMI calculator to know the approx amount you can afford. This tool helps you make the best borrowing decisions.
Let’s read more to understand how a personal loan EMI calculator can be useful.
Concept of EMI
Equated Monthly Instalments or EMI is a type of loan repayment process. It includes both interest and principal. There are three factors in it. These are loan amount, loan interest rate and tenure. The EMI calculator helps you figure out the monthly amount you need to pay. The EMI calculator is easy to use to find out the total instalment budget. This is great for financial planning.
You need to enter values in the three fields. It will calculate the monthly instalment in a moment. The EMI calculator calculates quickly for you in no time. The precision helps to avoid any errors, unlike manual calculations.
The formula used for arriving at the EMI is:
EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
Here, P= Principal loan amount, R= Rate of interest, and n= Number of monthly instalments.
Benefits of using a personal loan EMI calculator
No Technical Knowledge Is Required
A personal loan EMI calculator is simple to use. It’s user-friendly and efficient. It’s okay if you do not have technical knowledge about finances. You don’t need them at all. The EMI calculator would do the job for you. You need to input three data in the blanks. That’s all. This free digital tool is accessible even on a smartphone. Calculating EMI has never been this easy.
Saves You from Performing Complex Calculations
A personal loan EMI calculator gives you results in seconds. This is one of the key components to consider. Manual calculations are messy and time-consuming. Often people find the calculations tough and cause a lot of errors. So, a specialised personal loan EMI calculator solves everything in seconds. It does the calculations and gives you error-free results in an instant. Save your valuable time with EMI calculators.
Provides Nothing but Accurate Results
Another advantage of using a personal loan EMI calculator is its accuracy. The chances of errors are almost negligible. Even a small calculation error can result in inaccurate EMI calculations. This ultimately results in higher payments. With a loan EMI calculator, say goodbye to such errors. You need to enter the correct values. That’s it!
Helps you Maintain your Credit Score
An EMI Calculator saves your credit score. The calculator helps you estimate the total amount of money you need. It helps you think if the amount is affordable or not. Remember, late EMI payments affect your credit score. So, calculate your EMI and mull over it for a moment. Do this before you apply for a personal loan. You need to prepare yourself to pay the EMI on time.
A late EMI affects your credit score. So, an EMI calculator indirectly saves your Credit Score. Always try to maintain a strong credit profile. It is important for your future financial purposes. Poor scores prevent easy access to credits.
Make Decisions by Modifying Components of EMI
Your EMI is based on your loan amount, monthly interest rate, and tenure. The loan amount and interest rate are directly proportional to the EMI. It is also inversely proportional to the loan’s term. If you want to lessen your instalment amount, increase the tenure.
Use an EMI calculator to tweak these values. It helps you find out the most affordable loan terms for your profile. Choose a loan amount as per the EMI without affecting your daily life.
Loan-specific EMI Calculators at Your Disposal
The essential requirements for any loan may be the same. But sometimes, you need to use lender-specific EMI calculators. A loan-specific calculator can better estimate the EMIs that you need to pay. Piramal Finance offers you a unique Home Loan EMI Calculator and Personal Loan EMI Calculator. You can also get Bike Loan EMI Calculator, Car Loan Calculator, etc. Now, plan your finances effectively without much hassle.
Conclusion
Always aim to reduce your chances of default on loan repayment. This needs careful planning of your personal loan EMIs. The ideal way to start is to study your finance books. Use an EMI calculator or alike functions. Plan thoroughly and estimate your EMI in advance. A simple free EMI calculator can save you thousands of bucks.
Piramal Financial is the ideal platform for amazing loan plans. This includes bike loans, personal loans, home loans, etc. You get a finance partner who helps you fulfil the basic requirements. We offer an easy-to-use personal loan EMI calculator. This helps you budget your payments. The service is free and simple to use. Forget about errors with Piramal Finance!
Other highlights of service provided by Piramal Finance include customisable loan tenure and reasonable loan interest rates. There are no hidden fees or additional costs. We uphold complete transparency in all loan transactions.