Personal Loan EMI calculator: Help in getting the best personal loan offers

Taking a Personal loan to meet the immediate financial requirement is the best decision if taken with proper financial planning. When you apply for a personal loan, various aspects require a lot of calculation and research. All that becomes easier by using a Personal loan EMI Calculator. Here is the step by step guide which helps you in understanding the importance of the Personal Loan EMI calculator:

Importance of EMI calculators

You can plan your EMIS well

It is the first and most important aspect about EMIs. Using the calculator, you can easily calculate your EMIs that you are and can pay monthly. It will help you in understanding whether you can afford the loan or not. It would be a great help in getting insights on how to manage your expense during the loan tenure.

Know about the loan tenure:

You can find the best and perfect suitable loan tenure from the calculator. If you decide on paying a huge number of EMIs, you have to pay a less interest rate on the loan amount. To take the right decision on the loan tenure, the Personal loan EMI calculator allows you to alter the value and number of EMIS to understand and find out the best tenure of the loan.

Personal loan interest rate

The interest rate applies to Personal loan is one of the major aspects which require consideration. The interest offers by the lender based on various factors like loan tenure and EMIs.  The personal loan EMI calculator proves to be the way of determining the best interest rate by altering the value till you are satisfied.

Loan eligibility

Using the EMI calculator, you can easily find out the loan eligibility before filing a loan application to avoid facing the drawbacks of loan rejection. When you put the loan amount on the calculator, it asks for the annual or monthly income, based on the calculator lets you know whether you have loan eligibility for the required amount or not.

Know your credit rating

When you are using the loan EMI calculator, you would have been given the option to enter your credit rating. In case, your credit rating is the bad and personal loan interest rate you have to pay is huge, you should not apply for a loan at that time and take some steps to build your credit rating.

Customizable:

 Since the values of all aspects in the EMI calculator are customizable, you can alter the components of the EMI calculator till you are satisfied that you have gotten the best result. Therefore, it will help you in availing the perfect loan for you with the best possible values.

Conclusion

A Personal loan is the best solution to cover any necessary or urgent expenses that knock on your door unexpectedly. The best feature of these loans is that it offers freedom and flexibility to lead the lifestyle of your choice without affecting your other goal. Make the best use of these loans with a Personal loan EMI calculator and pre-determine your future EMIs.

EMI calculation made easy with a Personal Loan EMI Calculator

When you plan to avail of a personal loan, you must consider your net monthly income and your current obligations so that you know how much loan amount you can take to ensure EMIs are affordable. This is where an online personal loan EMI calculator comes into the picture. With the help of this tool, you can quickly estimate the monthly EMI of your loan.

EMI and its calculation

EMI or Equated Monthly Installment (EMI) is the amount that you need to pay to your financial institution with whom you apply for a loan. EMI is the sum of principal amount and interest divided by the tenure period (number of months) in which the loan needs to be repaid to the lender. Hence, EMI depends on the amount borrowed by you and the loan tenure. It must be paid monthly. The interest component of your EMI is larger during the initial period and gradually reduces with the passing months and payments made.

Formula to calculate EMI

EMI = [P x R x (1+R) ^N]/ [(1+R) ^N-1]

Here, E is EMI, P is the Principal Loan Amount, R is the rate of interest per month, if the interest rate is per annum, then the rate of interest will be – interest / (12 x 100)], N is the duration to repay the loan in months.

How does EMI calculation help in loan planning?

Using an EMI calculator will give you a clear idea of the amount that you need to pay towards your loan. Thus, a personal loan eligibility calculator can help you to plan your monthly budget and expenses accordingly to the outflow towards the loan every month. 

An EMI Calculator also helps you to estimate the loan amount and the tenure period for which the loan must be availed. Therefore, knowing your loan EMIs in advance is important to calculate your personal loan eligibility and planning your budget so that your borrowing journey becomes better.

How to use EMI Calculator?

An EMI calculator is just like a simple calculator that helps you calculate your monthly loan EMIs. It is calculated based on three factors i.e. Loan Amount, Loan Tenure, and Interest Rate. After filling in the desired details, you will get to know the EMIs that you need to pay to the financial institution every month to repay your loan. You can find this calculator online and calculate your loan EMIs easily.

What are the Factors affecting Personal loan EMI?

The listed below are the factors that affect personal loan EMIs-

• Loan amount – This is the amount that a borrower decides to avail from the lender in the form of a loan. The higher the loan amount, the higher will be your monthly EMIs.

• Rate of interest – This is the interest charged on the loan amount borrowed by you. The lower the rate of interest, the lower will be your EMIs.

• Loan Tenure – This is the duration for which you avail of a loan. The longer the loan tenure, the lower will be your monthly EMIs.

Final Words

An EMI calculator helps you a lot in evaluating your current standing and the amount of EMI you need to pay to your lender. So, while availing of a personal loan online, you can make use of this calculator to plan your budget.

Importance of Personal Loan Calculator in getting a personal loan approved quickly

Personal Loan calculator considered one of the best financial planning tools to calculate the monthly amount payable to the lender against the loan sanctioned. All one needs to provide details such as the loan amount, interest rate, and the preferred tenure. After this, you can get to know about the maximum loan amount you can avail of based on your income.

Two most important form of Personal Loan Calculator is as follows:

•    Personal Loan Eligibility Calculator

By using the Personal Loan Eligibility Calculator, you can easily find out know about the maximum loan amount you can avail of based on your income and ability to repay.

•    Personal Loan EMI Calculator

A Personal Loan EMI calculator is an online tool that helps you to get the exact EMI amount based on details such as principal amount, tenure, and rate of interest.
The process to use the Personal Loan calculator are as follows:

Step 1
Use the slider for selecting the desired loan amount according to your financial need.

Step 2
Fill the interest rate offered by lenders. Do not change the value as per your preference.

Step 3
After choosing the Personal Loan interest rate, make use of the slider to choose the tenure of your loan. Higher is the tenure, lower will be the EMI value.

Features of using a Personal Loan calculator

•   It is the simplest way to calculate the amount you need to pay as EMIs.
•   After EMI Calculation, you can plan your budget and spending accordingly.
•   You can know the total amount to be paid and the total interest payable. This will help you determine the loan tenure that suits you as per your budget.

What are the benefits of using the Personal Loan Calculator?

Better Financial Planning
Getting aware of all the information related to a loan before applying for one proves to help manage your finances better. This is the reason that the personal loan calculator will help you decide on reducing your expenses and the value for the duration of the loan.

The Interest rate offered:
With the help of the personal loan calculator, you can easily find out the interest rate that you are required to pay to the lender. Since the loan interest rate is dependent on a variety of factors, you can alter the numbers and select the best interest rate for you.

EMIs and tenure of the loan
You can decide a perfect tenure to make the loan repayment, with the help of the calculator. It will not only give you the perfect value of EMIs but also the number of EMIs you are required to pay dependent on the tenure of the loan.

EndNote…

I hope the above information will help you in availing of the best personal loan offers using the personal loan calculator.