Step By Step Guide - How To Use a Personal Loan EMI Calculatorby Arwind Sharma Finance Advisor
Personal loans are increasingly becoming a crucial financial tool in today's market scenario. These unsecured loans fulfil individuals’ financial requirements without straining their savings and other financial commitments.
Previously, obtaining any sort of credit from financial institutes – private or nationalised, was a tedious and time-consuming process. But with the advent of new-age technologies like the loan payment calculator, the lending process has streamlined significantly and undergone significant transformations. Added to this, the increase in popularity of NBFCs has made the lending business even more competitive.
At present, a borrower can benefit from a Quick Personal Loan from NBFCs like Bajaj Finserv with a little effort and time. Furthermore, these loans come packed with borrower-friendly features and pre-approved offers.
Bajaj Finserv brings you pre-approved offers that make procuring loans quick and hassle-free. These offers are applicable on unsecured credits like personal loans, business loans and secured advances such as home loans among numerous other financial products. You can check out your pre-approved offer by sharing a few necessary details like your name and contact number.
Now, the most significant factor to consider while taking a personal loan is to determine your equated monthly instalments.
How to Determine Your EMIs?
The amount of EMI payable every month throughout the designated tenor is crucial for a borrower. So, to determine your EMI, you need to consider 3 vital factors at the very onset –
Required loan amount.
Interest rate payable on such loan amount.
Loan repayment period.
With these three variables, you can use a EMI calculator to calculate your monthly instalments and fix your budget accordingly. All leading financial institutions and NBFCs provide a personal loan EMI calculator to determine the equated amount prior to availing a loan.
How Does an EMI Calculator Work?
Though the eligibility criteria might differ, majority of lending institutes in India follow some standard parameters which assist an individual to ascertain the EMI amount.
The key inputs include –
Principal loan amount
Rate of interest
Loan repayment period
Once these 3 inputs are feed into their given fields – calculating your EMI becomes a less complicated procedure. In fact, via an online personal loan EMI calculator, the payable EMI amount gets automatically calculated. You can adjust your EMI amount innumerable times as required – only by changing the online inputs in your EMI calculator.
Taking An Example:
Suppose you require a personal loan amount of Rs. 1,00,000 with 14% interest rate with a tenor of 12 months. Now using a personal loan EMI calculator, you can determine the payable interest rate and EMI amount for each month. Now, the EMI amount calculated will be approximately Rs. 9000 for the entire tenor. But if you want to pay less than Rs. 5000 as an EMI, you need to increase the repayment period to 24 months. Then, the EMI amount will stand at almost Rs. 4000.
Note that a longer repayment tenor increase the total cost of loan in spite of a decreased EMI.
The Benefit of Using EMI Calculator
Using an EMI calculator for a personal loan, you can determine your loan amount and the payable EMI appropriate to you as per your monthly income. Once you’re ready with an apt EMI figure, you can approach a lender of your choice to process the instant personal loan within a minimal time frame.
Therefore, a loan payment calculator is an indispensable tool when it comes to determining the most fitting EMI one can afford.
Created on Jul 4th 2019 02:15. Viewed 248 times.