People are taking personal loans for various purposes – renovating a home, financing a child’s education, etc. As per the reports claimed by Reserve Bank of India, the personal loan index has raised more than ₹570,000 crores at the end of 2019. The reports also state that personal loans accounted for more than 96% of the total bank loans for the year. These figures show a promising utilization of personal loans.
Flexibility and low-interest rate are the biggest pros of personal loans. Also, you can have a personal loan without any collateral. Before applying for a personal loan, experts suggest checking how you can repay it and what should be the amount of EMI you will be required to pay during the tenure with the help of a personal loan EMI calculator.
Why do you need to calculate your EMI in advance?
Calculating your EMI before applying for a personal loan is very important, according to the experts. Some of the reasons you should check EMI are as follows:
- The EMI will radically affect your monthly budget. You can prepare your budget in advance if you know how the EMI value.
- You can select your tenure based on your budget.
- The EMIs and your capability to repay EMI will be included in your credit report. Failing to pay any EMI will hurt your credit score. Thus, knowing it in advance helps you to ensure that your credit score remains unaffected.
- You can maintain your creditworthiness by calculating your EMI in advance with a personal loan EMI calculator.
How does personal loan EMI calculator work?
For calculating your loan EMI, you need to select the option for a rate of interest, including the flat rate of interest or a reducing balance interest rate. A reducing balance rate takes into account solely the outstanding loan amount to calculate your interest rate. Here’s how you can extract the EMI amount by using a personal loan EMI calculator.
- P represents the personal loan amount
- R symbolizes the Interest rate
- N stands for the loan repayment tenure
- I represent the rate the of interest
- E is for the EMI amount including the interest
- PV displays the initial amount
- Pmt is for a periodic payment
How do we use a personal loan EMI calculator?
In this tech-savvy world, where everything is just a click away, calculating your personal loan’s EMI is very simple. Now let’s understand how to use the EMI calculator for getting the accurate figure for your loan.
Before applying for an instant personal loan online, the money lenders provide you with an option to check the amount of credit that you need to borrow and the tenure period in which you need to repay the borrowed amount. The EMI calculator computes your eligibility for borrowing loan, EMI amount, and EMI repayment tenure.
- Browse instant personal loan online page
- Access the EMI calculator
- After loading the EMI page, you need to input your monthly salary, your occupation, and your age.
- Then it will divert you into the second phase, which asks you to provide an input of your desired personal loan and the tenure period.
- Afterward, you will get detailed information about your EMI, including the principal amount and the interest rate.
- You can increase the tenure period for having a lower EMI or reducing it for paying less rate of interest.
- Just click on the instant online personal loan apply button after getting a satisfied EMI amount.
A personal loan EMI amount includes the interest rate and loan amounts. You can calculate the exact EMI on your loan by using the personal loan calculator free of cost.