Gone are the days when you used a notepad and pen for calculations. Nowadays, you prefer to calculate expenses or taxes on your calculator or mobile app. Realizing this, leading financial institutions have introduced the Personal Loan Calculator on their websites for those looking to take a Personal Loan.
When you opt for a Personal Loan, you have to make monthly payments to the lender to repay the loan. The total of your monthly payments to the lender (principal + interest) up until the loan is repaid is known as the Equated Monthly Instalment (EMI).
A Personal Loan EMI Calculator helps you calculate your EMIs so you can plan your finances accordingly.
It is a free financial tool that enables a borrower to determine the ideal loan amount and loan term for practical loan repayment.
Why do you need Personal Loans?
Financial planning is crucial in your life, particularly if you have multiple obligations to cover. However, today, there is no need to struggle with your finances. With the help of Personal Loans, you can obtain quick money without pledging any assets and meet your financial crisis.
When applying for a personal Loan, you must understand the terms provided to you. You may not be familiar with many terminologies, but it is crucial to understand them to make the best financial decisions.
As an illustration, the term “EMI” is one that you will hear frequently but may not fully understand. That is where Personal Loan Calculators are beneficial.
Here is a quick guide to understanding EMI and Personal Loan Calculators while taking a loan.
What is EMI, and how does one determine the EMI?
Equated Monthly Instalment (EMI) is the amount you pay to the lender (interest + principal) every month until the loan is paid off.
Three variables affect a loan’s EMI:
- Loan amount – This refers to the total sum borrowed by the person.
- Interest – It is the rate that lenders charge for the amount borrowed.
- Tenure – It is the duration of the loan.
EMI is calculated using the following formula: EMI = P × r × (1 + r)n/((1 + r)n – 1), where P is the loan amount, r is the interest rate, and n is the term in months.
Concerning the loan balance or interest rate and vice versa, the EMI payments rise correspondingly. Even though the total amount of interest that must be paid rises as the loan period extends, the EMI payments fall as the loan tenure lengthens.
The Personal Loan EMI Calculator can be used to determine EMI instalments.
What is a Personal Loan EMI Calculator?
A Personal Loan EMI Calculator is a free online financial tool that helps users calculate their monthly payments for personal loans.
The calculator helps an applicant to ascertain the appropriate loan amount and the loan tenure to repay the loan amount conveniently.
Use the calculator by following these steps:
- Enter the necessary loan amount.
- Choose the repayment period now.
- The choice of the interest rate is the final step.
Once you finish the three steps, you will get the EMI payments.
Why is it beneficial to utilize a Personal Loan Calculator?
There are a variety of reasons why you should utilize a Personal Loan EMI Calculator, including:
- You might benefit significantly from using a Personal Loan Calculator because it reveals the precise amount of your monthly payments.
- You can use this online tool whenever you want at any place since it is an online tool.
- You can use the online calculator to manage your finances well.
- You can save time and energy by avoiding manual computations.
Late EMI payments may incur various fees, including penalties, cancellation of the loan agreement, and even suspension of the credit facility. Additionally, credit scores decline as a result of EMI defaults. These factors could all have a detrimental effect on your financial situation.
You can determine the EMIs using a Personal Loan Calculator so that you can pay them on time each month with proper planning.
You can choose to use Clix Capital’s personal loan EMI calculator to quickly calculate the EMIs of your Personal Loan and be in control of your finances.
Read More: Why You Should Get A Personal Loan?