Personal loans are lifesavers in critical situations where you need some urgent funds, be it for home renovation, wedding, medical expenses. With a personal loan, you can handle financial emergencies without dipping into your savings.
However, whenever you take out a loan, you are required to repay it with interest in the form of EMI. So, it is important to plan your loan beforehand and outline a budget to repay the monthly payments timely. Here, you can use a personal loan EMI calculator for clarity on the loan aspects such as EMIs and loan tenure.
Read on to learn some important aspects about a personal loan calculator that you must know before applying for a loan.
What is a personal loan EMI calculator?
A personal loan EMI calculator is an online tool that helps you calculate how much interest you will have to pay for a specific loan type. Simply visit the lender’s website, click on the calculator tab, enter the loan amount, interest rate and repayment tenure. Once done, the calculator will automatically show the EMIs applicable for the loan tenure in a split second. You can also check the interest rate payable for the total loan amount for different repayment tenures.
Different aspects of personal loan EMI calculators that you should know about
- Time saving
You are not required to visit the lender to know how much EMI you need to pay monthly on your personal loan. You can easily use an online personal loan calculator on your smartphone, laptop, or tablet to check different offers.
Moreover, it saves your efforts by performing all complicated calculations without errors. If you calculate the EMI manually, you not only have to use a long complex formula but there are also chances of making inaccurate calculations. Thus, it is always recommended to use this tool before clicking on the personal loan apply option.
- Free of cost
The EMI calculator is available online on the lender’s website and is easily accessible to everyone. Moreover, there are no fees or extra charges for using the tool. You can use the tool and enter different variables as many times until you get the desired results.
- Minimum details needed
You do not have to provide any personal details like name, address, or contact information to use this tool. Simply enter minimum details like your loan amount, tenure and interest rates and let the tool calculate your EMIs.
- Easy comparison of personal loan plans
With a personal loan EMI calculator, you can compare how much interest and principal is payable for different loan amounts and tenures. Moreover, you do not have to pay any agent for making these calculations for you. This way, you can check multiple personal loan interest rates without affecting your monthly financial obligations.
To sum up
These are some important aspects you must know while using a personal loan EMI calculator. It is a useful financial analysis and decision-making tool that helps you find a personal loan with minimum EMIs, thus preventing any financial strain.