We all have specific financial aspirations, whether buying a house or funding our child’s education. But to fulfil them, we usually need a handsome amount that we may not have. In times like these, a Personal Loan comes in handy. It delivers a one-time payment of money to the borrower. It empowers them to achieve their financial objectives by offering adequate funding.
However, a Personal Loan also entails rigorous financial planning. You need to consider several aspects while applying for it. These include the Equated Monthly Instalments, tenure, Loan amount, etc. To assess their appropriateness, you must make detailed calculations that cannot always be done manually. This is when a Personal Loan EMI Calculator comes to your rescue.
What is a Personal Loan EMI Calculator?
It is a tool used to compute the monthly instalments that a borrower would need to pay to repay a Personal Loan. The calculator typically considers the Loan amount, interest rates, and tenure to determine the EMI. Here are some ways you can use the tool:
- Budgeting your expenses
The Personal Loan Calculator provides accurate values of the different monetary aspects of your loan. This further assists you in budgeting your expenses accordingly. You arrive at a strategic financial plan for the duration of the tenure.
- Calculating EMIs
Every loan is ideally repaid through EMI payments. But the value of such payments depends on several factors. This includes your loan amount, tenure, interest rate, etc. Calculating the same manually is not always a viable option. Instead, it is better to use the calculator. Since it gives you a clear idea of your EMI amount, you know how much you need to save each month. You can always check the same on your Banking app.
- Comparing Loan schemes
Nowadays, several banks offer Personal Loans. To make proper comparisons, you can make use of this tool. It lets you assess the different interest rates and tenures, enabling you to come to a fitting conclusion. That way, you can check the funds you have in your Bank Account and if the interest rates are feasible for you.
- Checking eligibility
The calculator also lets you check your Loan eligibility. For example, you come across a scheme that you find appealing. But after calculations, you realise that the EMI is too high. In this case, you could alter your tenure to come to a value that fits your budget. If it does not, you can venture into other schemes. This way, you use the funds in your online Bank Account more wisely.
Using a Personal Loan EMI Calculator is relatively simple. It is also free of cost, so you need not worry about unnecessary charges. Considering these perks, it is best to utilise this tool to optimise your Loan management.