How EMI Calculator Plays An Important Role In Calculating Personal Loan Amount?
A personal loan EMI calculator is a tool that calculates the amount of money that you must pay to the bank each month on a certain loan. You can figure out how much you’ll have to pay monthly on loans from distinct banks and NBFCs. You may do this by putting the principal sum, interest rate, and loan period into the online tool. A personal loan EMI calculator will determine the sum you must repay the bank in monthly payments.
EMI calculators may also assist you in grasping the loan’s interest. You may use them to compute EMIs for all types of personal loans, like auto, house, and personal loans. It assists you in making wise financial decisions. Continue reading to learn about the perks of using a personal loan EMI calculator when planning to apply for a personal loan.
How to Use an EMI Calculator?
A personal loan EMI calculator is easy to use. It has charts and gives quick results. Given below is the list to find loans using a personal loan EMI calculator:
- The principal amount (in Rupees).
- Term of Loan (in months or years).
- Interest Rate (percentage).
- Unpaid EMIs or Pre-paid EMIs (for car loans only).
You can adjust the values using a slider. If you want exact values, you can directly type them. A personal loan EMI calculator will find the amount of your EMI when you change the value.
For a better understanding, let’s take an example:
- Borrowed amount – Rs. 5 lakhs from a bank.
- Rate of interest -10.5% annually.
- Tenure of loan – 5 years (60 months).
Then, the EMI =
Rs. 5,00,000 x 0.00875 * (1 + 0.00875)120 / ((1 + 0.00875)60 – 1) = Rs. 10,869
This means that you will have to pay Rs. 10,869 every month for 60 months to repay the entire loan amount.
The total amount payable will be Rs. 10,869 x 60 = Rs. 6,52,140, which includes Rs. 1,52,140 as interest toward the loan.
Features of a Personal Loan EMI Calculator
- Helps Pick Offers in Terms of Cost
Choosing offers is one of the reasons to get help from a personal EMI loan calculator. You can compare offers easily because of how simple it is to use an EMI calculator. You may review the repayment details. There are many loan term options that may fit your needs.
- Exact Outcomes
The quality of the findings is one of the major perks of using the personal loan EMI calculator. There is always the chance of wrong data when using a manual system to determine how much rate is due. You do not need to use a pencil and paper and risk miscalculating the rate due. Also, you do not need to sit down and manually test many rate pairings, desired loan rates, & loan tenures.
- Saves Time
One of the main perks of using the Loan EMI system to calculate personal loan EMI is that it saves time by providing quick and precise answers. A personal loan EMI calculator is available online, saving time and effort to go to the bank and wait for your loan EMI to be computed.
- Removes The Need For a Manual Sum
The EMI calculator’s user-friendly interface assists you in avoiding complex sums. To find the EMI amount, just input the desired loan balance, the loan rate, and the loan tenure. This saves you the time and effort of using the EMI formula manually. It should be noted that using the formula would need more work. It is also more time-consuming. You will need to convert data to fit the criteria of the equations in use.
- Makes Loan Planning Easier
Personal loan EMI calculators are intended to assist you in figuring out how much interest and the total is due on a certain loan sum. Due to their ease of use, personal loan EMI calculators are now the main method of calculating EMIs. Also, a loan EMI calculator doesn’t merely show how much EMI is due. It also offers you a repayment schedule/table for the life of the personal loan. A repayment plan may seem formal, but it refers to a plan or table that shows a split of the loan sum you must repay throughout the term.
The repayment table displays the precise interest rate due each month until the loan is paid off. During the loan term, the sums in the repayment plan are equal. Having access to this table might help you plan out your loan instalments ahead of time and avoid late payments. It assists you in evaluating your lifestyle & financial demands and determining how you will put away the allotted EMIs for loan repayment. Paying off a loan on time might be hard if you don’t prepare.
Process To Calculate Personal Loan EMI with an Online EMI Calculator
There are many steps to calculate the personal loan EMI. These are as follows:
- Step 1: Visit any reliable website.
- Step 2: Click on the calculator tab to access the EMI calculator.
- Step 3: Decide the type of loan needed. This may be a house loan, a personal loan, a vehicle loan, and so on.
- Step 4: You must now provide the proper details. This includes the loan amount, principle, rate, and loan time.
- Step 5: The EMI calculator will show the payable EMI amount after entering the details.
- Step 6: You may try other combinations to find the best fit EMI amount.
Conclusion
Loans are now a vital part of many lives. They help in reaching specific life goals. EMI is the most vital term to keep in mind when it comes to loans. There are many personal loan EMI calculators that you can use to calculate loan EMI. This includes personal loan calculators, home loan calculators, and business loan calculators. They may be used to calculate the personal loan EMI of various loans.
When you enter the needed data into an EMI calculator, it makes calculations based on the EMI calculation formula. Then, it provides the EMI you must pay monthly in seconds. If you want to know more about personal loan EMI calculators, visit Piramal Finance. You may also explore their products and services.