A personal loan can be used to take care of numerous expenses. This means that lenders do not place any restrictions on how the loan amount is going to be used. The borrower could use the loan amount to pay their kid’s school fees, organise a wedding, take a trip, or even consolidate their debt. A personal loan is unsecured, so there is no need to worry about placing collateral with a lender. Now, while this loan can be very useful, one needs to make sure that the loan can be afforded. This is so that they can clear their personal loan EMI payments with ease.
To know whether a specific loan plan is affordable, the applicant needs to be aware of the loan’s monthly instalments beforehand. Previously, the only way that borrowers could find this out was through manual calculations. For those who are looking for an easier way of finding out a loan’s EMI payments, it is advisable to use a personal loan EMI calculator.
Read 5 of the following points to understand why using this calculator is so important.
- A personal loan EMI calculator provides EMI results immediately
Manual calculations can take up quite a lot of time. A much easier solution is to make use of a personal loan EMI calculator. Once the calculator gets the information needed, it provides the EMI results within seconds. This way, users can find out EMI results instantly and can decide whether to apply for the online loan or look for a better option.
- This calculator can help in understanding whether the loan’s interest rate is affordable
A lot of borrowers are mainly worried about the interest rate that lenders charge on personal loans. Using a personal loan EMI calculator can help in understanding whether the interest rate of the loan is affordable. If the EMI result is above the user’s budget, they can always look for a lender that offers a lower interest rate.
- It can help in identifying a suitable repayment tenure as per the user’s budget
To pay off a personal loan’s monthly instalments comfortably, it is vital to pick a repayment tenure that suits the borrower’s budget. Borrowers can easily find a repayment tenure that suits them with the help of a personal loan EMI calculator. They can keep changing the tenure to arrive at a suitable EMI value.
- Using a personal loan EMI calculator is really simple
Using this calculator is much easier as compared to manually calculating the loan’s EMI payments. The values that a personal loan EMI calculator needs are the loan amount, interest rate of the loan, and repayment tenure. Once the user adds these details, the calculator will display the loan’s EMI results.
The best part about using this personal loan calculator is that it is accessible for free on most of the financial institutions’ official websites. Users can take the help of this tool to find a suitable loan plan as per their budgets!