How A Personal Loan EMI Calculator Helps You Plan Your Loan Process Easily – Explained!

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Personal Loans are a very popular form of unsecured loans offered by banks and non-banking financial companies. People, who opt for personal loans, apply for the same through the online portals of the lending institutions. The personal loans interest rates are affordable and cater to a wider segment.

Some of the most common reasons for looking at personal loans are debt consolidation, unforeseen medical expenses, foreign travel, and even weddings. Like all loan products, a certain amount is sanctioned and disbursed as personal loans to the borrower. The principal amount needs to be paid back through EMI’s at a predetermined interest rate. The repayment needs to be done within a preset time frame.

Different institutions offer personal loans under various schemes. It is not easy for a person to arrive at the product best suited to their needs. You may not have the wherewithal to work through the different loan schemes and calculate the EMI you need to pay. For this purpose, personal loan calculators are available in the public domain thanks to banks, non-banking financial companies, and advisory sites.

The personal loan EMI calculator works out your monthly commitment for repayment of the loan. All you need to do is enter the desired loan amount and the tenure.

A personal loan EMI calculator is helpful in planning your loan process. Let us look at how it comes to your help:

  1. Allows You Comparison

Your monthly EMI is a direct function of the interest rates, loan amount, and the tenure of the loan. With the help of a personal loan EMI calculator, you may work out the exact EMI amount by making minute changes in all these variables offered by the different institutions, check and decide on the offer best suited to your needs.

  1. Provides Instant Solutions

Manual calculation of EMI is a complicated process. You have to work through the maze of the loan amount, loan tenure, and rate of interest to calculate and arrive at your EMI amount. An EMI calculator gives you the solution as soon as you enter the variables by showing the installment figure.

  1. Helps in Your Monthly Financial Planning

By arriving at the exact EMI amount, you are better positioned to take an all-round view of your financial position before applying for a personal loan. You may do your financial planning in advance and know how much to provide in a month to service the loan.

  1. Maintains Your Creditworthiness

By using the EMI calculator, you will get to know your monthly commitment beforehand. It is natural for you to choose the loan option that is serviced most conveniently. Timely repayment of dues will improve your CIBIL score, which may serve you in good stead when you opt for other loan products.

As is evident now, an EMI calculator makes the process of obtaining a personal loan simpler and convenient. It also makes you better informed about the product, hence, helps you in making a prudent decision.