A personal loan is an unsecured form of credit where the borrowed funds have no end-use restrictions. You can use the funds for multiple purposes such as wedding expenditures, medical expenses, travelling costs, and expenditures for higher studies. To avail a personal loan, borrowers need not keep any collateral as security with the lender. Simply by meeting the eligibility criteria laid down by a lending institution, one can avail a personal loan.
As a borrower, you must know how much you need to pay as monthly instalments in advance. Doing so will ensure a comfortable repayment of the availed sum and reduce the chances of default. A personal loan EMI calculator can be used to get an estimate of the monthly EMIs against the availed loan principal.
Advantages of Using the EMI Calculator
Knowing your EMIs in advance help you plan your finances accordingly. There are multiple other benefits of using a personal loan calculator; some of them are as follows:
- Calculating convenient EMI amount
Borrowers can adjust the loan amount and the repayment tenure in order to arrive at an EMI value which they can conveniently repay. Doing so will reduce the chances of defaulting on loan repayments. Additionally, the online EMI calculator can be accessed free of cost from anywhere, anytime.
- Provides accurate results within seconds
Manually calculating the EMI amount might take up a lot of your time. Furthermore, manual calculations can induce errors. However, when you use an online personal loan calculator, you will get accurate results that too within seconds.
- Requires minimum details
Borrowers need not gather all the necessary documents at the time of using the EMI calculator. Simply inputting the loan amount, tenure, and interest rate will be enough for the calculations. Once a borrower knows the convenient EMI amount, he/she can apply for the corresponding loan amount from the lender.
- Can refine your financial planning
EMI will give an accurate and clear understanding of the monthly outlay. Once you are aware of the amount that you need to repay each month, plan your monthly expenditures to avoid getting drained out financially. Therefore, you get a better understanding of how much loan you can afford.
- Reveals the actual cost of loan
The personal loan calculator computes certain other values apart from the EMI amount. It will compute the total interest outgo, the total EMI value paid throughout the tenure, and thus, the total cost of loan. This will give the borrower a complete insight into how much he/she is actually spending throughout the loan tenure while availing a personal loan.
Apart from knowing the benefits of using an online EMI calculator, it is important to use it accurately to get the desired results.
How to Use a Personal Loan EMI Calculator
Every financial institution features an online personal loan calculator on the official websites. Using this online calculator is pretty simple; follow the steps mentioned below:
Step 1: Search for the personal loan EMI calculator on your preferred lender’s website.
Step 2: Enter your desired loan amount and repayment tenure. Additionally, enter the rate of interest offered by the lender.
Step 4: Click on the submit button to get results instantly.
You can get an accurate estimation of your personal loan EMI amount by providing these inputs. Personal loans are one of the most availed types of advances in India. Such loans can cater to multiple personal and professional needs without restrictions. Nowadays, reputed financial institutions also offer customised personal loans for women who can utilise the availed funds to meet various expenses in daily life. However, it is always advisable to use an online personal loan EMI calculator in advance to improve the chances of proper debt management.