How Online Personal Loan Emi Calculator Helps You To Do Easy Financial Planning?

Financial planning has become an important part of everybody’s life. Various issues have made people plan their finances in a better way. If you do not have your finances planned from the very first month of your employment, you might face issues later.

You must want to have an asset in your name, be it your dream house or a car. You can get what you are aiming for simply by calculating the finances correctly.

By satisfying the eligibility criteria laid down by financial institutions, you can easily apply for personal loans. The maximum personal loan amount is based on certain judgements made by the lender. Before applying, make sure you check the online personal loan EMI calculator to figure out how much amount you have to spend from your salary.

Who can apply for a personal loan?

Salaried employees of 21 years to 60 years of age are eligible to apply. However, your basic salary should be Rs 25,000 and you need to be an employee of the current organization for 6 months. After submitting your PAN card, identity proof, salary proof and income proof you can proceed with your loan application.

You can become eligible for loan amounts starting from 1 lakh to a maximum personal loan amount of10 lakhs and even higher if you apply under the co-applicant scheme. In the co-applicant scheme, only working spouses can become a partner by clubbing their income.  

Using the online personal loan EMI calculator you can easily choose zero pre-payment and foreclosure charges for your maximum personal loan amount. You can choose the lowest possible rate of interest of 12.99% with a flexible repayment option of 12 months to 60 months.

Here is the list of the documents that you will require to apply for a personal loan:

• PAN card
• As identity proof, choose one from your driving license, passport, aadhaar card, voter ID card
• As an address proof, you need to provide a copy of either your passport, driving license, voter ID card, lease agreement, or utility bills
• As proof of your income, you need to show the bank statement for the last three months. You can also provide the salary slip for the latest month.

Why is Online Personal Loan EMI Calculator Required?

To get an accurate EMI calculation, you do not have to conduct manual calculations. Online EMI calculator has made the job easy. You can calculate the EMI using the formula given below:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Where,

P = Principal or loan amount

R = Rate of interest per month. Suppose the rate of interest is mentioned in annum, the monthly rate of interest is [ R  / (12  x 100) ]

N = Number of monthly instalments

When computers came, the EMI was calculated in Microsoft Excel :

= PMT(RATE,NPER,PV,FV,TYPE)

Here,
EMI = PMT
Rate =  Rate of interest on the loan in months
NPER = Total number of instalments in months
PV = Principal amount or present value

FV = Future value or value that remains after the last payment in the last month (which is 0) 
TYPE = It is either 0 or 1 (when the instalment amount is paid at the end of the month it is 0 and when the instalment amount is paid at the beginning of the month, it is taken as 1)
 

Therefore, it is also shortened as,

= PMT(RATE,NPER,PV)

No wonder, necessity is the Mother of Invention. Now EMI can easily be calculated online.

You need to set only 3 parameters, Personal loan amount, Interest rate and Loan Tenure.  Equated Monthly Instalments or EMI per month are available to you.

Benefits of Using an Online Personal EMI Calculator

Here’s how the EMI calculator helps you plan your finances:

Accuracy

The online personal loan EMI calculator provides an exact computation, saving you time in the process and avoiding calculation mistakes. Some EMI calculators also show the data in a pie-chart form. It helps you be aware of the relation between the rate of interest and the principal loan amount. Do the research well before delving into the expenditure. 

Planning your budget

Even if you do not have enough money saved, you can still possess get your desired gadget or appliances. Check and analyse the price of the gadget you are eyeing and then using the online calculator decide the maximum personal loan amount you require. You can easily choose the EMI you can afford without making it heavy on your pocket.

Saving

Once you have figured out your expenses, you can start saving for your future. How much goes to paying for the FD, RD, PPF or any other insurance should be given importance too.

Appropriate lenders

Various financial institutions are offering loans. You can do a quick survey to determine which lender offers a lower rate of interest. Accordingly, choose the lender that is offering the best interest rate.

Waiving off interest

You might be earning more than you did at the start of the loan. Try to payout your loan before time, if you can arrange for some extra money. The flexible repayment tenure facility enables you to close your loan before the scheduled tenure. This helps you save up on interest and also improves your credit score.

Conclusion

With so much information available online, you can make great progress in taking better financial decisions. You can find the solution whenever doubts arise. In this article, we have tried to give a picture of how the online personal loan EMI calculator enables better financial planning.

For further information about maximum personal loan amount eligibility, log onto the Piramal Finance website. You can check various informative blogs uploaded online on the website. Do not forget to explore the products and services they offer.