Do you need urgent funds to sponsor a sibling’s education? Do you need instant cash to foot the medical bill after your father/mother gets discharged from the hospital? Did your medical insurance max out and you need extra cash to clear the bill? Or do you want to surprise your mother with gold bangles she has her eyes set on for her birthday? Amidst the celebrations and hopes, there is a tense moment when you need to arrange a personal loan and wonder how to manage the EMIs.
Now, personal loan applications have become easier as they can happen online or offline. Applicants can access a great deal of information on their eligibility online to decide which lender they want to go with. Additionally, most banks have streamlined the entire process which makes it easier for you to avail yourself of funds. However, you should apply for a personal loan only after evaluating certain terms – such as interest rate, repayment tenure, etc. to manage your finances well.
Even though this kind of loan is collateral-free, it is still a financial responsibility, and failure to pay can ruin your payment history and credit score. You can eliminate any margin of error by using a personal loan calculator which includes the interest rate as well.
An EMI calculator lets you accurately calculate your EMIs over different repayment tenures for various principal amounts. Let’s read all its benefits –
Easy Comparison – Interest rate, principal amount, and tenure have a direct impact on your EMIs. The EMIs are inversely proportional to your repayment tenure; therefore, the longer the tenure the lower the EMI. On the other hand, if you plan to repay the entire amount within a few months, then your EMIs would be higher. Hence, using an online calculator for gauging personal loan EMI will help you decide on repayment tenure at your convenience.
Time-saving – One of the main benefits of using a PL calculator for EMIs is that it gives you instant results without you needing to do manual calculations on your own. An online personal loan EMI calculator saves you the time and effort of physically going to a bank’s branch and waiting around for your turn to speak with someone. It also eliminates any errors that might happen due to manual calculations.
Simplifies Financial Planning – PL EMI calculators are designed in a way to help you understand how much interest you will pay on the principal amount. It is easy and convenient to use; as such calculators also provide a table for the entire duration of the repayment schedule. Therefore, it gives you the transparency you need to sort your finances accordingly and manage your monthly budget to comfortably accommodate the EMI. For instance, the EMIs on a 1L personal loan at a 10.49% interest rate for 5 years is INR 2,149 and for 3 years it’s INR 3,250.
EMI calculators also help you calculate your prepayment cost on a personal loan. Make sure you discuss the fee and charges on the preclosure of a personal loan with your bank. Use an EMI calculator today to find out what it would cost you to take a loan!