Importance of Personal Loan EMI Calculator You Must Know
A personal loan is a loan without any collateral. It is usually used for personal reasons. You could apply for a personal loan for your kid’s education, travel abroad, home renovation, or even medical expenses.
The loan is made without any collateral. But the rate of interest varies. Personal loans usually have higher interest rates. These depend on your CIBIL score, credit history, etc.
It is recommended that you use a personal loan EMI calculator to be prepared.
What is a personal loan EMI calculator?
A free-of-cost EMI calculator is a very useful tool. It allows you to calculate the amount of interest you’ll have to pay per month for a particular type of loan. The EMI calculator will help you calculate the amount of loan you can take. It will also calculate the sum you’ll have to keep aside for repayments.
You’ll get an idea of the interest rate for the principal loan amount. This will depend on different repayment tenures. The EMI calculator uses various benchmarks to do so. They are your desired loan amount, the given interest rate, and the preferred loan tenure used to calculate the EMI payable.
Information provided by a personal loan EMI calculator
- EMI: The monthly EMI amount you’ll have to pay your lender to pay off your loan.
- Breakup of your total amount payable: Calculation and breakup of your total personal loan amount payable to the bank. This amount is the sum of your loan amount (principal), processing fees, and interest payable.
Features of the EMI calculator:
- A graphic depiction of the principal amount and interest amount.
- Repayment table illustrating details regarding your loan repayment. This table will help you plan your monthly expenditures in advance.
Here are some reasons why a personal loan EMI calculator is important.
- Easy to navigate
One of the main benefits of a personal loan EMI calculator is its ease of use. It has a step-by-step guide to assist. It is user-friendly. Many lenders provide an EMI calculator.
They’ll go above and beyond in explaining how to use the EMI calculator. They do this if they value the borrower’s comfort. All you need to do is visit the lender’s website. Then enter your desired loan amount, interest rate, and repayment tenure.
The repayment tenure for a personal loan ranges from 1–5 years. If your lender has a personal loan app, you can easily use the EMI calculator on the app whenever you want. Some lenders even provide on-call or in-person help. They assist you throughout the loan process.
- Accurate results
You’ll be surprised at the accuracy of the calculator. A manual calculation to assess interest payable always leaves room for error. Miscalculation is always a possibility with manual calculation. Moreover, you will have to spend time testing various interest rate combinations for the desired result.
So use an EMI calculator for a personal loan. With this, you get instant and accurate results within minutes. The algorithm also considers your credit score. It also lets you experiment and test various loan amounts. It does this without hurting your credit score.
- Time-saving
Now you don’t have to make calculations manually to experiment with and test loan rates and interest rates. A personal loan EMI calculator is swift. It will provide instant results. You don’t even have to visit the bank. You don’t have to stand in line and wait all day for your turn.
You can get the results online. You can do all this from the comfort of your home. You don’t have the trouble of assembling tonnes of documents to calculate the EMI for your personal loan. You only need a stable internet connection to use a personal loan EMI calculator.
- Insight into the repayment process
An EMI calculator provides information on your payable EMIs. It also helps you comprehend your repayment patterns. Simply put, you will receive an amortisation table on your loan tenure. This will showcase the breakdown of the loan amount you will have to repay.
An amortisation table includes a percentage of your principal and interest payments. It also shows how they affect each EMI. The amount calculated in the table is accurate. It helps you plan your prepayment. Moreover, you’ll be able to choose the best time to extract maximum value from your payments. You will also save on interest rates.
- Compare different loan plans easily.
With a personal loan EMI calculator, you can differentiate how much interest and the principal are payable for different loan amounts and tenures. You can compare different lenders. With this, you can choose the best option without harming your credit score.
All of this is free and easy. You will save money by not paying any agent or institution to make the calculations and comparisons on your behalf. It’s an easy way to experiment. You also come to know your options before deciding.
That will be a decision that will not harm your monthly financial obligations, daily expenses, or lifestyle. Remember that you do not have to choose the first personal loan plan recommended by the EMI calculator. You can explore and compare your available options.
- Loan planning simplified
Personal EMI loan calculators are crafted for the sole purpose of helping you. They are there to help you understand the interest and the principal amount payable for your chosen loan plan. It is more convenient than other calculating options. So, many lenders provide their users with an online EMI calculator on their website.
By knowing your EMI beforehand or planning the amount of EMI, you will be comfortable with your repayment schedule. It will make the repayment procedure smooth and easy. You will be prepared. You will not have to stress when the repayment date arrives.
To conclude, personal loans are in demand. This is because they don’t need collateral. They can also be used for various purposes. However, for the same reasons, the interest rate on personal loans is relatively higher. With the help of an EMI calculator, you can be prepared beforehand. Visit Piramal Finance to get more insights on personal loans. You can also avail yourself of financial assistance for loan planning.