Part Pre Payment Of Personal Loan Calculator
A personal loan is a one-stop solution for your urgent financial demands. Whether you need it for vacation planning, purchasing desired gadgets, paying off college loans, or organizing your dream wedding. You deserve the best in life, and so does your family. But, maintaining a comfortable lifestyle can be very expensive. People tend to take on too much debt, and this leads to trouble. The good news is that you can lower this burden by making a part pre-payment of your personal loan.
What Is Pre-Payment Of A Personal Loan?
Pre-payment of a personal loan is simply paying off the loan amount earlier than the due date. It is done to either pay off a personal loan faster in case of full pre-payment or to pay lesser EMIs in case of partial pre-payment.
You can pay off the principal amount in full or in instalments. If you pay the loan in instalments, you will have to pay more interest over the loan term. If you pay the loan in full, you will have to pay less interest over the term.
Part payments on personal loans are made when you have a lump sum of extra cash, but you need more to cover the entire loan’s outstanding balance. Part payments are useful because they ease the outstanding principal, which reduces your EMIs and overall interest costs. However, it is vital to remember that it only helps if you make a significant lump sum as part of the payment.
What Is A Pre-payment Calculator?
A personal loan pre-payment calculator can help you calculate your EMI, pre-payment interest, and other vital factors. Using a calculator is the easiest and quickest way to estimate your pre-payment amount for the personal loan.
A personal loan EMI calculator helps you to figure out how much money you will save on the EMI if you pay more than what is required.
How Does a Pre-payment Personal Loan Calculator Work?
A personal loan EMI calculator that allows pre-payment aids in revising the loan’s EMI needs. You must enter the loan amount, tenure, and interest rates in the relevant fields of the pre-payment personal loan calculator.
The personal loan pre-payment calculator will need some info before calculating the amount. The remaining loan amount, EMIs paid to date, the pre-payment amount, interest rate, and length of your loan if you are already making payments on a personal loan. A personal loan EMI calculator allows you to find out how much money you will save on your monthly payments if you pay more than the minimum amount.
Benefits Of Prepayment Personal Loan Calculator
Pre-payment is simply the act of paying off a loan before it expires. It may be larger than your regular monthly repayments because you are paying off all remaining instalments at once. Pre-payment of loans is a great way of becoming debt-free easily and quickly. A pre-payment personal loan calculator has many benefits, as mentioned below:
- Easy and Quick Calculations: A personal loan calculator can help you calculate your EMI, pre-payment interest, and other important factors quickly and easily. All you need to do is enter the correct information in the calculator.
- Accurate Results: Although you can calculate your pre-payment amount manually, it is prone to human errors. However, a calculator will help you derive fast and precise results.
- Become debt-free easily: You can save money and deposit it as a pre-payment of the loan’s principal to live a debt-free life without any stress. Personal loan pre-payment also lowers EMI costs because a portion of the principal will be waived.
- Reduce the burden: Personal loans can be prepaid without making the whole payment all at once. You can also partially prepay your loan balance. Though you will not save any money on interest, your debt will be significantly reduced. The remaining principal balance is also reduced when you prepay an outstanding loan. As a result, the EMIs will be lower than the current interest rate.
- Reduce Your Interest Costs: You must have sufficient funds to repay the entire loan amount in the early days of your tenure. The majority of banks and financial institutions have a one-year lock-in term. It means you cannot repay your debt in full or for a year. However, once the one-year period is up, you can pay off the outstanding loan and save significant money.
How To Use A Pre-payment Personal Loan Calculator?
Using a personal loan calculator is very easy as you only have to make a few inputs like loan amount, tenure, interest rate, etc., and it will automatically calculate your EMI amount. You can use the pre-payment personal loan calculator by following the procedures outlined below –
Step 1: To set the principal loan amount, move the ” Loan Amount slider.”
Step 2: Use the “Tenure” slider to select the loan tenure in months or years.
Step 3: Next, set the desired interest rate for your loan using the “Rate of Interest” slider.
Step 4: Select the “Part Payment Amount” using the following slider.
Step 5: The EMI and the Revised Tenure will automatically be displayed by the pre-payment personal loan calculator.
Conclusion
If you are in need of cash and need to get the money as soon as possible, a personal loan could solve your problems. The best thing about these loans is that they are comparatively quick and easy to get. However, as a borrower, you must try to prepay the personal loan as soon as possible to stay clear of paying high-interest rates and ease the burden off your shoulders.