The concept of EMI Calculator:
For somewhat easy application process and easy eligibility terms, personal loans have gained in popularity over the previous couple of years. To feature to the present, most lenders have streamlined the borrowing process, making it faster to avail of funds.
However, a private loan should only be taken after evaluating certain aspects, like the quantity you borrow, the applicable interest rates and therefore the repayment tenor, in order that your personal finances aren’t strained. Though collateral-free, a private loan remains a financial responsibility and a failure to repay your loan will affect your lifestyle and CIBIL score. You’ll eliminate all margins of error by employing a consumer loan EMI calculator.
An EMI calculator is a web tool helps you accurately estimate your EMI over different tenors and for various principal amounts, making the method of designing your repayment easier. Here are five ways during which a private loan EMI calculator may be a must-use to plan stress-free repayment.
- Allows easy comparison
Monthly rate of interest, total loan amount, and repayment tenor directly impact your monthly EMIs. The EMI amount is directly relative to the monthly interest rate and total amount of loan and inversely proportional to the repayment tenor. Therefore, an extended repayment tenor would end in lower EMI payments. On the opposite hand, a shorter repayment tenor would end in higher EMI payments, but reduce your total interest outgo. Employing a personal loan EMI calculator, you’ll calculate EMIs for various repayment tenors and interest rates.
Considering the EMI calculator’s accuracy, you’ll be ready to see the littlest difference that varying interest rates makes to your monthly EMI payments and therefore the total interest payable. Further, you’ll compare interest rates and repayment plans offered by different lenders and choose the simplest available option. Employing a personal loan EMI calculator ensures that you simply choose the proper loan amount, which you’ll easily repay without constraining your finances and lifestyle.
- Provides accurate results quickly
EMI is calculated using the following formula
EMI = P × r × (1 + r)n/((1 + r)n − 1)
Here P is the principal or the total amount of personal loan
r is the rate of interest
n is the repayment tenor in months
So, if P = Rs. 20 lakh and r = 15% with n = 60 months, then the total amount of EMI payment is Rs. 47,580
Manually calculation of monthly EMI payments is very complicated, prolonged, and leaves you accessible committing errors. However, a private loan EMI calculator guarantees accurate leads to a couple of seconds. All you’ve got to try to to is enter the entire loan amount, rate of interest, and repayment tenor, and therefore the calculator displays the precise payable EMI amount. Additionally, it also helps you calculate different EMI amounts for varying loan parameters instantly and without hassles.
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- Simplifies monthly financial planning
A personal loan EMI calculator ensures that you simply know the precise amount of your EMI outgo per month. This helps you propose your monthly expenses throughout the loan repayment tenor. What’s more, this online calculator also helps you select the proper loan amount and tenor, considering your monthly income and expenses.
- Helps maintain a healthy CIBIL score
Using a personal loan EMI calculator, you’ll calculate your exact monthly EMI payments and budget them, so you don’t default them. This way, you’re during a better position to form timely repayment, which helps you boost your CIBIL score.
- Easy to use and readily available
There are several personal loan EMI calculators available online for free of charge . you’ll choose any of those and simply calculate and compare EMI amounts and repayment plans of various lenders. All you would like to try to to is enter the loan parameters or tweak them as per your needs any number of times.
As you’ll see, employing a personal loan EMI calculator not only simplifies your borrowing experience, but also helps you create a well-informed decision. Another tool you’ll use is that the personal loan eligibility calculator to understand your eligibility for a private loan. This helps you apply just for the loans you qualify for and thus, save time and keep your CIBIL score from taking successful. This happens when multiple lenders conduct a tough inquiry to see your score.
So, use a private loan EMI calculator to match and choose the simplest lender for yourself.
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