Top 3 benefits of a personal loan EMI calculator that you should know
A personal loan EMI calculator helps you calculate your EMIs before you decide to take a loan. Learn how you can use this to manage your finances.
Technological advancement in the fintech space has simplified the lending process, making it more straightforward and efficient.
It has significantly improved the process of taking a personal loan by introducing digitised applications.
This ease has made pre approved personal loan quite popular since they allow you to get access to funds in a few minutes when in need.
When you choose to take a personal loan, it is imperative to compare various loan offers to get the one that offers you a low interest rate and favourable repayment terms.
Fortunately, you can now use a personal loan EMI calculator to compare personal loan offers and choose one that best suits your needs.
Let us understand what an EMI calculator is and how you can use it to make an informed decision and seamlessly manage your finances.
An EMI calculator is a tool that allows you to calculate the amount of money you need to repay to the lender every month on a particular loan.
You can calculate the monthly instalment that you will have to pay on loans offered by various lenders. You can do this by entering the principal amount, the rate of interest, and the term of the loan on the online tool.
The EMI calculator will fetch the amount you will have to repay to the lender in the form of monthly instalments. EMI calculators also help you understand the interest component of the loan.
This tool can be used to calculate the EMIs for all kinds of personal loans such as car loans, home loans, personal loans, etc. and helps you in planning your finances wisely.
Read on about the benefits provided by an EMI calculator while planning for your personal loan.
Now that you know what an EMI calculator is, let’s look at the top three reasons why it’s a must-have tool for loan borrowers.
Effective and quick planning
Checking the term period of a loan and the rate of interest applicable is very important. This should be the first step in the process of your plan to take out a personal loan.
A personal loan EMI calculator will not only help you plan a repayment schedule, it will also assist you in reworking your budget to accommodate for the EMI.
It gives clarity about the amount of debt you will be taking on and how much it will affect your personal finances.
Moreover, since the calculator is easy to use, you can avoid spending time manually calculating each and every variable to get an estimate on the EMI that you would pay.
Search for an offer that best suits your needs
The most significant benefit of an EMI calculator is that it makes comparing personal loan offers simple and hassle-free.
Since a personal loan EMI calculator also helps you determine your feasibility of taking a loan, it will be beneficial to apply only after comparing all the available offers.
Receive an accurate estimate of the EMI
Entering the combination of a principal amount, rate of interest, and term of a loan offered by a lender provides you with an accurate result of the estimated EMI.
Since an EMI calculator is available online, it eliminates the risk of errors that can take place while calculating manually and so you can fix your funds according to the requirement.
This is the key benefit to calculate personal loan EMI which also allows you to never fall behind in the repayment of your monthly installments.
To quickly access a personal loan, you must adhere to a personal loan document list. The main three documents that you require for availing a personal loan are:
- A proof of identity, such as your Aadhar card.
- A proof of residence.
- Bank statements of the previous three months.
Different lenders may provide a different personal loan document list. Make sure you check the requirements correctly.
Here are the steps that you can follow to use an EMI calculator.
- Step 1: Enter the preferred principal amount that you want to secure.
- Step 2: Enter the interest rate charged for the personal loan.
- Step 3: Lastly, enter the loan tenure for generating your personal loan EMI details.
You must conduct market research to find the best loan offers for your financial requirements. A personal loan EMI calculator allows you to quickly calculate the monthly payments that you have to make.
You can compare various loan offers using this tool and choose the option that minimises your EMI payments.
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