Top benefits of personal loan EMI calculator you must know this year
A personal loan is a financial product. It has been in demand over the past few years. It can help you provide a good credit profile. This is needed when you apply for higher credit in the future. Personal loans help you in arranging secured funds for personal reasons. These could be the repairs of your house, wedding, travel, and more.
A personal loan can be used for any legitimate financial need. It is an unsecured, collateral, and security-free loan. It needs minimal paperwork. To avail of a personal loan, you need to apply for it and submit the required paperwork. The bank then processes your application and checks your creditworthiness. Lastly, it makes a loan offer.
The personal loan interest rate varies according to different factors. These are your debt obligation, income, and more. To figure out your perfect interest rate, you should use a personal loan EMI calculator.
What is a personal loan EMI calculator?
A personal loan EMI calculator is a digital tool. You can use it to find the interest you would have to pay for your loan. This lets you know the loan amount and the interest so you can plan your savings every month. There are several loan EMI calculators available on the internet for this purpose.
The calculator would help you to check the interest payable and the principal amount for different durations. The personal loan EMI calculator checks loan offers for affordability. It would ensure your financial well-being as it is necessary to make the right decision.
4 benefits of a personal loan EMI calculator
The loan EMI calculator helps in making the correct financial decision. It also provides more benefits.
- Obtain accurate decisions to make an informed financial decision
With the use of a personal loan EMI calculator, you will be able to make a correct decision without making any mistakes. Every combination of your loan amount, different interests, and tenure you type into the personal loan calculator will provide you with an accurate result.
Making decisions based on manual estimates could result in errors. This could prevent you from making the wrong choice as it would show incorrect loan planning. You can type different interest rates, loan terms, and principal amounts using the algorithm to find the perfect monthly payment.
- Save your time and lead to quick decision making
The digital EMI calculator will help you save time and give you results right away. You can then move on to the next step of the personal loan planning process. You would save time. This is because you wouldn’t need to run to your bank and wait in line to learn about personal loan plans. You can check your interest rate at any time and any place by using a personal loan EMI calculator.
- Plan your loan easily and efficiently
It is an efficient and simple process for planning your loans. You have to visit the bank’s website and type the loan amount you want to receive, your choice of interest rate, and the repayment period of your choice.
A personal loan has a repayment period that might last between 1 and 5 years. Some banks also offer personal loan applications. This makes turning to the EMI calculator for personal loans easier. The calculator makes your loan planning process extremely simple by giving you the correct numbers.
- Compare with other loan plans easily
You can compare several personal loan plans using the EMI calculator. During deciding which plan to select, you can check out different other loan terms, interest rates, and principal amounts.
Another advantage is that you don’t have to go through an agent or visit different banks. You can easily explore different financing alternatives by using the EMI calculator. You can also figure out the loan amount. As you can save that money and enjoy your regular spending, and day-to-day expenses.
What factors would affect your personal loan EMI?
There are mainly two things that would affect your personal loan EMI.
- Rate of Interest of your loan
In every type of loan, your interest rate is one of the main components that affect your EMI payment. Finding a personal loan that has a low-interest rate is difficult. It also depends on your credit score. If you have a high credit score, then you would have a low-interest rate for your loan. And that would lower your monthly instalment.
- Tenure of your loan
Your loan duration is another factor that affects your instalment amount. The longer the duration, the less would be your monthly instalment. However the more costly it is for you to repay the loan.
So, choose wisely while deciding the duration and the interest rate for your loan.
The bottom line
To conclude, personal loans are required for different purposes in life. People choose personal loans even if they charge a higher interest rate. This is because they don’t need any collateral. However, before applying for one, you should plan your finances and check if you have all the loan requirements. To ease your planning process, you should check out the Personal Loans from Piramal Finance. It would simplify the application process. Another thing that would simplify your process is the EMI calculator. People now prefer to use a digital EMI calculator over manual calculation to avoid errors. A personal loan EMI calculator would give you clear and accurate results.