Easy Loan Planning With the Personal Loan Calculatorby Arwind Sharma Finance Advisor Personal loans are indispensable at certain times. However, you may be unable to gauge how much loan you need. Taking a larger loan can backfire later. So, how can you ensure you do not end up knee-deep in debt? You can take help of a loan calculator. Read on to find out how:
What does a personal loan calculator do?
Before applying for a personal loan, look at your monthly budget. Check how much you can afford to pay as the equated monthly installment (EMI) every month. In some cases, you may have to choose a lower loan amount. This would bring down your EMIs. An affordable EMI is important because you do not want to end up missing payments. A delayed payment could attract penalties. And you may end up paying more interest than you initially intended. It can also negatively impact your credit score. Therefore, use a personal loan calculator. It can help you determine your ideal EMI and tenor.
How does it help?
Since a personal loan calculator can show you the total cost of the loan, you can compare it with other loan options before making a decision. Using a personal loan calculator will help you take a loan that is within your budget. This way, you will not end up as a defaulter.
How to plan your loan using a personal loan calculator?
Say, you need a loan of Rs.3 lakh. Your lender is willing to give you a loan at 13% interest. This is where a personal loan calculator comes in handy. Key in the amount and the interest rate. Now, you may be confused about the tenor. Suppose you can only afford to make monthly payments amounting to Rs.10,000. You can choose a tenor of three years and make payments of Rs.10,108 every month. In this case, you will be paying a total interest of Rs.63,895. Key in different tenors and choose the one that works best for you. Remember, the longer the tenor, the more interest you pay overall. So, opt for a bajaj finserv's personal loan that you can comfortably repay.
Planning a loan with a personal loan calculator is a breeze once you get the hang of it. Try it a few times with different combinations. When you plan responsibly, you can pay it back comfortably. Also, choose a lender who can offer you a low interest rate. For instance, Bajaj Finserv, a leading NBFC in India, offers personal loans at attractive rates and flexible tenors. You can also plan your loan using the calculator on their web portal. To learn more, log on to the Bajaj Finserv website.
Created on Feb 16th 2018 00:42. Viewed 147 times.