Just like any other type of loan, you should have a solid repayment plan in place before applying for a personal loan. An EMI Calculator for Personal Loan is a quick and simple way to plan the repayment of your loan. In this post, we’ll check some handy tips that can help you use such EMI calculators effectively.
We all face financial emergencies in life. While we generally rely on our family and friends during such instances, it is not always possible for them to help you out. A personal loan can be an excellent option in such a situation. A personal loan is an unsecured loan which doesn’t require you to keep any type of collateral (security), like other loans, like a car loan, home loan, etc.
But just like all the other types of loans, it is crucial to have a good repayment plan in place before applying for a personal loan. An EMI calculator is a simple online tool that helps you calculate the approximate EMI that you would be required to repay to the lender each month as per your loan amount, tenure and interest rate.
Let us have a look at some handy tips to use an EMI Calculator for Personal Loan effectively.
- Enter the required information carefully
To calculate the EMI for a personal loan that you are about to take, you’ll be required to enter the loan amount, tenure and interest rate. Simply adjust the slider to set the values, and the calculator will instantly provide a breakup of the total repayment amount including the principal amount and interest as well your EMI. Ensure that you enter all the information very carefully to get accurate results.
- Ensure that you can easily afford the EMI by adjusting the tenure of loan
It is important to make sure that the EMI of your personal loan is not a burden for you. You can opt for a longer tenure to reduce the monthly EMI of your personal loan. While higher tenure would mean higher interest too, but it would at least ensure that you can regularly pay the EMI’s without facing any financial difficulty. You can easily adjust the tenure on the calculator to know for what duration you should take the loan to ensure timely repayment.
- Compare personal loan offers of different lenders to get the best deal
Lenders offer personal loans at different interest rates, and the smallest of differences in the interest rate can have a significant impact on the overall amount you repay. Rather than sitting and manually calculating the EMI and overall repayment amount, it is far better to use an EMI calculator. It would not only save time and ensure accuracy but will allow you to select the best deal quickly.
- Can also be used for refinancing a personal loan
If you have already taken a personal loan and want to transfer it to another bank or other financial institution due to lower interest rate that the other lender is offering, you can again use the EMI Calculator to know the EMI and overall amount that you would be required to repay to the new lender and ensure that whether or not it is actually beneficial to switch to another lender.
- Use personal loan eligibility calculator for enhanced convenience
While most of the calculators only allow you to calculate the EMI, there are other websites which also offer personal loan eligibility calculator. You simply need to provide your personal details like the name of your employer, salary, etc. to know whether or not you are eligible for a personal loan from a particular lender.
So, before you move ahead with the application process, make sure that you do use EMI calculator. It will provide accurate information about the EMI that you would pay while also allowing you to understand how the loan tenure and interest rate can affect the EMI.