Personal loans are becoming increasingly popular due to their flexibility and convenience, but when it comes to taking out a personal loan, understanding all the fees and charges associated with it can be difficult. A personal loan EMI calculator is an online tool that can help you make sense of your loan application by helping you calculate how much you will need to pay on a monthly basis. This article aims to provide an in-depth understanding of the benefits of using a personal loan EMI calculator.
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What is a Personal Loan EMI Calculator?
Have you ever found yourself in a situation where you need to take out a personal loan but don’t know how much your monthly payments would be? This is where a Personal Loan EMI Calculator comes in handy. It is an online tool that helps you calculate the amount of money you’ll need to pay each month towards your loan repayment.
The calculator works by taking into account the principal amount, interest rate, and tenure of the loan. Once these details are entered into the calculator, it will generate a breakup of how much interest and principal you will pay each month. This information can help you plan your budget better and ensure that you don’t default on any payments.
Using a Personal Loan EMI Calculator can save time and effort as well since all calculations are done automatically for you.
What are the benefits of using a Personal Loan EMI Calculator?
Offers Better Understanding of Your Budget in Relationship to Your EMI
By accurately calculating, you can also incorporate your financial planning with EMI calculator and make necessary adjustments to your expenses. This prevents any unexpected financial burdens from catching you off guard, as you are fully informed and prepared from the beginning.
Enables Permutations and Combinations
To calculate your EMI accurately, you need to consider three factors: the loan amount, tenure, and interest rate. Fortunately, with an EMI calculator, you can easily calculate your EMI for varying loan amounts, tenures, and interest rates. Keep in mind that the EMI is directly influenced by the loan amount and interest rate, while it is inversely correlated with the loan’s tenure. This means that a longer tenure will result in a lower EMI, and vice versa. By using an EMI calculator, you can experiment with different combinations to find the optimal EMI for your loan, ensuring that your lifestyle remains unaffected by the loan’s repayment.
Ensures Healthy CIBIL score
Having a good credit score is crucial for getting approved for a loan, but it’s equally important to maintain that score by making timely repayments. Failure to pay your EMIs on time could lead to a downgrade of your credit score, making it more difficult to secure future loans. To avoid this scenario, it’s recommended that you exercise caution and utilize an EMI calculator before applying for a personal loan. By doing so, you’ll be able to make informed decisions about your loan repayment and avoid any potential setbacks. Remember, being forewarned is being forearmed, and using an EMI calculator can help you stay on top of your finances.
EMI calculators are designed to assist individuals in determining the cost of a loan for a specific period. By adjusting the sliders for the loan amount, interest rate, and tenure, users can quickly obtain the corresponding EMI amount. For those who prefer more specific inputs, the calculator allows for manual entry as well. This makes EMI calculators a user-friendly solution for anyone looking to understand the cost of their loan and plan their finances accordingly.
Using an EMI calculator can save you a significant amount of time in comparison to manually calculating your loan’s EMI. The calculator provides instant results based on your input, eliminating the need for complex calculations and reducing the potential for errors. Additionally, with an EMI calculator, you can quickly try out the different loan amounts, interest rates, and tenure combinations to find the best repayment plan for your budget. This saves you the time and effort of doing multiple calculations and helps you make informed decisions about your loan quickly and easily.
Accurate and Dependable
One of the major benefits of using an EMI calculator is its accuracy. The calculator uses a pre-determined formula to calculate the EMI, ensuring that the results are precise and reliable. This eliminates the potential for calculation errors that may occur when calculating the EMI manually.
The beauty of using an EMI calculator is that it allows you to calculate your loan’s EMI without any middlemen involved. You have complete control over the process and can use the calculator for free on most websites. Simply input your loan amount, interest rate, and tenure, and the calculator will provide you with the corresponding EMI amount. This eliminates the need for intermediaries, which may come with additional costs, and allows you to make informed decisions about your loan independently.
A personal loan EMI calculator is an invaluable tool when it comes to budgeting for your loan payments. It can quickly give you a snapshot of what your repayment plan might look like and help you make more informed decisions about taking out a loan. If you are considering applying for a loan, consider using a EMI calculator to get a better idea of how much the loan will cost you in the long run. Doing so could help save you money and financial stress in the future.
Shikha Ahuja is part of the content marketing team at KreditBee – India’s fastest personal loan platform where professionals can easily avail of personal loans in just a few minutes when in need of quick funds. Shikha writes to create awareness amongst her readers on topics related to loans, personal finance, and budgeting. Being a part of the FinTech industry keeps her on her toes, but she keeps herself grounded through yoga and meditation, and loves to host game nights during the weekends.