Personal loans have recently gained a lot of popularity due to their unsecured nature. The applicants aren’t required to pledge or submit assets as security to gain them. The best thing is that the amount borrowed can be utilised for almost any purpose. The disbursement of an instant personal loan after approval is also relatively quick, which is another reason for their popularity.
Whenever someone applies for an instant personal loan, the principal amount and interest need to be paid. To avoid any inefficiencies, it is very important to calculate your EMI or monthly instalments accurately.
Instead of calculating the easy monthly instalment amounts manually, people have started using online calculators for the same. Many banks provide a free personal loan EMI calculator on their websites. These calculators are a great way to get an idea of the monthly amount you will need to pay during your repayment tenure. This is great as the borrowers can then adjust their lifestyle and expenses accordingly.
Interest rates vary from one bank to another. You must check the interest rates of different banks and choose the one that suits your long-term goals when looking for a loan plan. In this blog, we will discuss the ways a personal loan EMI calculator is important for getting a personal loan.
Importance of EMI Calculator in getting a Personal Loan
Following are some ways in which an EMI calculator helps with a personal loan:
It helps plan your expenses and personal budget
Once you are done collecting all the information on your due amount, you will have to make the repayments on a monthly basis. This way, planning your expenses and savings will become much easier. You can also make a list of all your pending or future loans to get an idea of your due EMIs. It is always a good idea to stay acquainted with your state of finances.
Using EMI calculators, you can choose the loan tenure best suited for you. If you are considering paying a significant number of easy monthly instalments to decrease the interest rate on loan, the repayment tenure will be longer. You can use a personal loan EMI calculator to know the most effective loan tenure for you by changing the loan’s value and the number of easy monthly instalments.
Assured healthy credit rating
You can always maintain a good credit score with prior knowledge of your financial statement. If you are aware of all your easy monthly instalments beforehand, it will be very unlikely for you to miss them. This is crucial as avoiding a poor credit history is very important for your future financial goals.
When taking a personal loan, the first thing to consider is the interest rate. Rates of interest depend on the EMIs and the loan tenure. Making these calculations becomes much easier with the help of a personal loan EMI calculator as it allows you to experiment with different values until you get the best interest rates.
Eligibility and Accuracy
The personal loan EMI calculator will help you know whether you are eligible for a loan based on your given information. The formula used on the calculator varies from one loan to another. You may not know it, but different formulae are employed to calculate different types of loans. With an EMI calculator, you don’t have to manually calculate or think about applying the correct formula. Therefore, all the calculations are accurate, and there is very little scope for errors.
The above article mentions the importance of the EMI calculator that everyone must go through thoroughly before applying for a Instant Personal loan. It is crucial to understand and calculate every aspect of the loan manually and then cross check the information from the lenders.