An unsecured personal loan is often everyone’s go-to credit product when a financial crisis arises. You can use a personal loan for multiple reasons, from funding your holidays to handling an emergency and paying for home renovations.
It’s easy to access and usually comes in extremely flexible repayment tenure. However, this flexibility of tenure and interest rates can confuse which one can suit your capacity. And one of the easiest ways to compare the EMIs of different personal loans is using an online EMI calculator.
What is a Personal Loan EMI Calculator?
A personal loan EMI calculator is a tool that helps borrowers calculate their Equated Monthly Instalments (EMIs) for a personal loan. It is a vital tool for anyone considering taking out a personal loan, as it can help them determine whether they can repay the loan within the given timeframe. The calculator considers factors such as the principal amount borrowed, interest rate, and loan tenure to arrive at an estimated EMI.
Advantages of Using an EMI Calculator
- Provides a Quick and Easy Way to Calculate
One of the first advantages of using a personal loan EMI calculator is that you can use it easily and quickly understand how much a personal loan can actually cost you. Using a personal loan EMI calculator is straightforward; all you need to do is input some basic information about your proposed loan. The calculator will then run various calculations and present you with an estimated EMI amount. This estimate can help you plan your finances better by giving you an idea of how much money you will need to set aside each month toward repaying your loan.
- Saves Your Time
Since using an EMI calculator is simple, you don’t have to calculate now manually anything, which can be time-consuming. This useful tool helps eliminate manual labour from your end, helping you save effort and time. It gives instant calculations that are accurate, so you can ditch waiting in queues to get your personal loan EMI calculated without any worries!
Plus, you can easily eliminate the hassle of calling an agent for EMI calculation or even submitting several documents. With a personal loan EMI calculator, you can easily calculate the EMIs of your loans anywhere and anytime.
- Helps You Make Decisions by Changing Factors
With an EMI calculator tool, you can quickly alter the factors that affect the total amount of loan you have to pay back. For example, you can change the interest rate or the loan tenure in the tool itself and try different combinations. It will quickly calculate the final amount of the repayable loan amount. This can help you make quicker decisions regarding which tenure or interest rate you should go with.
You can experiment with different factors and know what will suit your capabilities. Moreover, you have the power to compare the different loan offers when you alter the factors and then further shortlist the options you want to go with.
- Gives Accurate Results
One of the benefits of using an EMI calculator is that it provides accurate results instantly. You don’t have to go through complex mathematical calculations or use complicated formulas to find out your monthly instalments. All you need to do is enter the loan amount, tenure, and interest rate into the calculator, and it will give you an estimate of your monthly payments. And since it does not involve manual labour, it is less likely to make mistakes, unlike human calculations, which are prone to errors.
- Simplifies the Process of Loan Planning
The benefits of using an EMI calculator are numerous and can significantly simplify the loan planning process. With the help of this tool, you can quickly calculate your monthly payments, interest rate, and total payment amount. It provides clarity on your financial situation. You can determine precisely how much money you will need to repay each month, which helps you plan your budget accordingly. This tool also helps you compare different loan options offered by various lenders to choose the best one that suits your needs.
Conclusion
It is clear that using a personal loan EMI calculator offers numerous benefits – from providing a comprehensive overview of one’s existing financial situation to calculating the most feasible repayment plans for loan borrowing.
Furthermore, it allows for a more informed decision about whether taking out a loan is the best option in any given circumstance. The calculator also gives borrowers greater control over their budgeting, as they can vary their repayment amount based on their financial needs.
Author Bio:
Tanvi Kaushik specializes in Content Marketing and works with the Digital Team at KreditBee – India’s fastest personal loan platform where self-employed and salaried professionals can easily avail of personal loans in just a few minutes when in need of quick funds. Tanvi writes to-the-point articles on personal finance and budgeting which are truly appreciated by her readers. She is committed to making money matters easy to understand even for the layman. Her commitment to her work doesn’t stop her from pursuing her hobbies of hiking, trekking and going on adventurous trips.