11 APRIL, 2022
With financial products like personal loans, transparency is a must. You as a borrower should be well aware of all the aspects of the loan you avail. You must know your financial obligation, duties, and rights before applying for the loan. For example, it is your right to know about the eligibility, documents required, and charges of personal loan even before you avail it. Earlier, you needed to visit the lender’s branch office to know this information. However, with technological advancement and ease, applying every piece of information is at your fingertip, your tentative EMI too. With tools like the personal loan EMI calculator, available online, you can calculate your EMI value without worrying about complicated manual calculations.
Continue reading to know about EMI calculators and the reasons you should use them before availing a loan.
What Is a Personal Loan EMI Calculator?
A personal loan EMI calculator is an online computation tool offered by banks and financial institutions on their website. With a personal loan calculator, you can find the amount of loan you need to repay, its interest component, and the monthly EMI with just a few clicks. By using this calculator, you can know the amount of money you need to pay towards the loan and plan your finances efficiently. To use this calculator, you will need to input variable values like the loan amount, expected interest rates, and chosen tenure.
Why Should You Use a Personal Loan EMI Calculator?
- It is easy to use and available for free
You need no technical knowledge to use a personal loan calculator. It is very simple and easy to use, where you need to input a few variable values to get the desired results. Moreover, it is free to use and is available online.
A personal loan EMI calculator is available on multiple platforms. You can either use it from the lender’s website or on some aggregator’s website or app. Moreover, it is accessible for everyone any number of times and any time of the day. You can even use the calculator if you haven’t availed the loan yet.
- It works with minimum details
You need not input your name, phone number, or any other personal details to use a personal loan calculator. You just need to input the information related to the online personal loan available to you. Moreover, the information you provide is secure and is not shared with anyone.
- It gives accurate results
While you use a personal loan calculator, you need not wonder if you would get accurate results. A personal loan calculator gives error-free and accurate results every time. You need not do manual calculations or spend hours finding your EMI when you have a personal loan calculator.
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When you know the repayment amount, you get a better understanding of the financial commitment you are planning to accept. You can then make changes in your budget and expenditure to fit in the personal loan. Moreover, using the calculator can also help you understand your affordability for the loan.
You should use a personal loan calculator because it can provide you with more transparency in your loan. It can help you determine a suitable tenure too. However, always remember that the values can change, as it is indicative.
FAQs
You should use a personal loan calculator because it can provide you with more transparency in your loan. It can help you determine a suitable tenure too. However, always remember that the values can change, as it is indicative. This is Why You Should Use a Personal Loan Calculator Before Availing a Personal Loan!
Why use a personal loan calculator? ›
This can help you make more informed decisions about your money and stay within your budget. PERSONAL LOAN CALCULATOREnter your projected loan amount, term and interest rate to see your estimated monthly payments and the total interest you can expect to pay.
What are the benefits of using personal loan EMI calculator? ›
Read on to know the benefits of using a personal loan EMI calculator.
- Simple process. Calculating personal loan EMIs manually can be a time-consuming process. ...
- Easy accessibility. One of the benefits of using a personal loan EMI calculator is its easy accessibility. ...
- Repayment tenure. ...
- Accurate data.
A personal loan calculator may produce an exact estimate of the monthly payments and total cost of the loan by inputting information such as the loan amount, interest rate, and payback time. This information can help with budgeting and debt payback planning.
When calculating the loan amount what do you need to consider? ›
Your income and employment status play a role in determining the size of the loan amount, as do factors such as the collateral and your credit history. Number of Months: The number of months refers to the loan term broken down by the total months you have to repay it.
How to use personal loan calculator? ›
How do Personal Loan EMI Calculators Work? You can calculate your EMI amount with the help of the mathematical formula given below: EMI Amount = [P x R x (1+R)^N]/[(1+R)^N-1] where P, R, and N are the variables. It also means that the EMI value will change every time you change any of the three variables.
Why is it important to know how to calculate a loan value monthly payment? ›
Using a loan calculator can help determine the exact monthly payments for a loan, making it easier to budget and avoid mistakes. It's important to calculate the total cost of a loan to understand how much it costs monthly and long term.
Is it better to reduce EMI or tenure on personal loan? ›
If your goal is to minimise interest costs, opting for a shorter tenure with higher EMIs might be the better choice, provided it aligns with your monthly budget. Carefully planning your finances can help in answering how to reduce the EMI of an existing Personal Loan.
What is a benefit of obtaining a personal loan answer? ›
Personal loans generally have fast approval times and payment times, making them useful for emergencies or other situations where you need money quickly. Some personal loan lenders can deposit the loan proceeds to your bank account as soon as the next business day.
Does reason for personal loan affect rate? ›
The purpose of your loan can impact the amount, terms and interest rates you receive. Some lenders also place restrictions on how to use the proceeds. Prequalifying with multiple lenders can help you find the best loan offer for your intended purpose, without hurting your credit.
CIBIL score range
A CIBIL score of 750 or above in your credit report is ideal. It will aid in qualifying you for personal loans and credit cards. However, if your CIBIL score is below 685, you will find it harder to borrow funds from banks and NBFCs.
What is good personal loan score? ›
Ideal credit score to avail a personal loan
The minimum CIBIL score for a personal loan is between 720 and 750. Having this score means you are creditworthy, and lenders will approve your personal loan application quickly. They may also offer you your chosen loan amount at a nominal interest.
Does a loan calculator affect credit score? ›
Using a loan calculator won't affect your credit score. The results are based only on the information you put into the calculator – it can't look at information from your credit history. Your credit history may only be affected if you choose to formally apply for a loan.
What is 6% interest on a $30,000 loan? ›
For example, the interest on a $30,000, 36-month loan at 6% is $2,856.
How do loan calculators work? ›
To use a loan calculator, you enter the loan amount, interest rate, and term into the calculator. It will then calculate the monthly payment for the loan. A loan calculator can be a valuable tool for businesses considering a loan.
How does loan calculation work? ›
For example, If a person avails a loan of ₹10,00,000 at an annual interest rate of 7.2% for a tenure of 120 months (10 years), then his EMI will be calculated as under: EMI= ₹10,00,000 * 0.006 * (1 + 0.006)120 / ((1 + 0.006)120 - 1) = ₹11,714. Calculating the EMI manually using the formula can be tedious.
How hard is it to get a $30,000 personal loan? ›
For a $30,000 loan, you'll typically need a credit score above 600 just to qualify or above 700 to get a competitive rate. A high enough income: Part of the lender's evaluation of your loan application includes determining whether you can afford the payments.
When should you use a personal loan to make a purchase Why? ›
While it can also help cover needs after your child comes home, a personal loan is usually best for fixed costs. Debt consolidation: You can save money on interest payments by consolidating high-interest debt, like credit cards, with a personal loan with lower interest rates.
