EMI Calculator Help in Personal Loan

Posted by riyasingh77 on March 28th, 2021

Though collateral-free, a private loan continues to be a money responsibility and a failure to repay your loan can have an effect on your life-style and CIBIL score. you'll be able to eliminate all margins of error by employing a loan EMI calculator.

An EMI calculator is a web tool helps you accurately estimate your EMI over completely different tenors and for various principal amounts, creating the method of designing your compensation easier. Here area unit 5 ways that during which a Personal loan EMI calculator could be a must-use to set up stress-free compensation.

•   1. Allows easy comparison

Monthly interest rate, total loan amount, and repayment tenor directly impact your monthly EMIs. The EMI amount is directly proportional to the monthly interest rate and total loan amount and inversely proportional to the repayment tenor. Therefore, a longer repayment tenor would result in lower EMI payments. On the other hand, a shorter repayment tenor would result in higher EMI payments, but reduce your total interest outgo. Using a personal loan EMI calculator, you can calculate EMIs for different repayment tenors and interest rates.

Considering the EMI calculator’s accuracy, you will be able to see the smallest difference that varying interest rates makes to your monthly EMI payments and the total interest payable. Further, you can compare interest rates and repayment plans offered by different lenders and choose the best available option. Using a personal loan EMI calculator ensures that you choose the right loan amount, which you can easily repay without constraining your finances and lifestyle.

•   2. Provides accurate results quickly

EMI is calculated using the following formula

EMI = P × r × (1 + r)n/((1 + r)n − 1)

Where P is the principal or the total loan amount

r is the rate of interest

n is the repayment tenor in months

So, if P = Rs. 20 lakh and r = 15% with n = 60 months, then your total EMI payment is Rs. 47,580

Calculating monthly EMI payments manually is complicated, time-consuming, and leaves you open to committing errors. However, a personal loan EMI calculator guarantees accurate results in a few seconds. All you have to do is enter the total loan amount, rate of interest, and repayment tenor, and the calculator displays the exact payable EMI amount. Moreover, it helps you calculate different EMI amounts for varying loan parameters instantly and without hassles.

•   3. Simplifies monthly financial planning: A personal loan EMI calculator ensures that you know the exact amount of your EMI outgo per month. This helps you plan your monthly expenses throughout the loan repayment tenor. What’s more, this online calculator also helps you choose the right loan amount and tenor, considering your monthly income and expenses.
•   4. Helps maintain a healthy CIBIL score: Using a personal loan EMI calculator, you can calculate your exact monthly EMI payments and budget them, so you don’t default on them. This way, you are in a better position to make timely repayment, which helps you boost your CIBIL score.
•   5. Easy to use and readily available:

There are several personal loan EMI calculators available online for free. You can choose any of these and easily calculate and compare EMI amounts and repayment plans of different lenders. All you need to do is enter the loan parameters or tweak them as per your needs any number of times.

As you can see, using a personal loan EMI calculator not only simplifies your borrowing experience, but also helps you make a well-informed decision. Another tool you can use is the personal loan eligibility calculator to know your eligibility for a personal loan. This helps you apply only for the loans you qualify for and thus, save time and keep your CIBIL score from taking a hit. This happens when multiple lenders conduct a hard inquiry to check your score.

So, use a personal loan EMI calculator to compare and choose the best lender for yourself. Apply for the Personal Loan and get up to Rs. 25 lakhs at an attractive interest rate and easily repay the loan over a tenor of up to 60 months. Also, you can opt for the Flexi facility to borrow as you need and lower your EMI payments by up to 45% during the initial tenor.

With a hassle-free application process, you can easily apply online and gain approval within 5 minutes! To avail of instant financing via a customized deal, check your pre-approved today.