Top 5 Benefits of using a Personal Loan EMI Calculator
A personal loan is an unsecured loan. It lets you borrow funds from a lending institution without pledging any collateral or asset like animmovable property, a vehicle, or a life insurance policy. You can use a personal loan for various purposes – funding wedding expenses, overseas/ higher education, home renovation, business expansion, overseas travel/ holiday, medical emergencies – and even consolidating high-interest debt. As a personal loan is a collateral-free loan, borrowers must pay higher interest rates than those for secured loans, collateral-based loans. The interest payable depends on various factors – like the borrower’s income, employment status/ history, existing debt obligations, CIBIL score, credit history, and the existing relationship with the lender. Depending on these factors, the interest rates can range anywhere between 8% and 16%, but they can even go up to 21%-24% per annum. To find a personal loan with the ideal interest rate per your lifestyle and repayment capacity, you should try to use a personal loan EMI calculator.
What is a personal loan EMI calculator?
A personal loan EMI calculator is a free of cost calculating tool that lets you calculate how much interest you have to pay for a particular loan type. The EMI calculator helps you assess how much loan you can take and the sum you can set aside for your monthly loan repayments. It shows you the interest rate payable for the principal loan amount for different repayment tenures. A personal loan EMI calculator uses metrics like your desired loan amount, the given interest rate, and the preferred loan tenure. You can input different interest rates between the given range limit and see how much EMI is payable for each interest rate.
What are the benefits of the PL EMI calculator?
Easy to use
One of the core benefits of the PL EMI calculator is that it is easy to use. It is user-friendly and guided at every step. If the lender values their customer’s comfort and clarity, they will go the extra mile in ensuring that the borrower understands how to use the personal loan EMI calculator. You simply need to visit the lender’s website. Then, you have to enter the loan amount you wish to borrow, the preferred interest rate, and the desired repayment tenure. The repayment tenure for a personal loan can range anywhere between 1 and 5 years. Some lenders even have a personal loan app that makes using the personal loan EMI calculator easier. Moreover, reliable lenders even provide on-call or in-person assistance, not just in EMI calculation,but also for understanding various other parts of the application process.
One of the core benefits of the PL EMI calculator is that it saves you time by giving you instantaneous and accurate results. A personal loan EMI calculator is online, saving you the effort to go down to the bank, stand in queues and wait around to get your personal loan EMI calculated. Then the rest of the loan procedure is done. Moreover, the hassle of submitting tons of complex documents or calling an agent to calculate the personal loan amount and interest rates get eliminated. As it is online, you can use a personal loan EMI calculator while on the go, during a work break, or even on vacation at the farthest end of the globe. All you need is a solid and secure internet connection.
One of the best benefits of using the PL EMI calculator is the accuracy of the results. When you use a manual calculation mode to assess how much interest is payable, there is always a chance for error. You do not have to use pen and paper and run the risk of miscalculating how much interest is payable. Moreover, you do not have to sit and test various interest-rate combinations, desired loan rates, and loan tenures yourself. With the personal loan EMI calculator, you save time and get accurate and instant results for various loan options within minutes or even seconds. Moreover, the algorithm is such that you change the factors affecting your EMI and experiment with various loan amounts without hurting your credit score.
Easy comparison of personal loan plans
Using a personal loan EMI calculator helps you compare how much interest and principal is payable for various loan amounts and tenures without affecting your credit score in any way. You can make soft inquiries easily. Moreover, you do not have to pay any agent or intermediary for doing these calculations and comparisons for you. This way, you can experiment with various loan options with ease. You can also understand the loan amount that will not hinder your monthly financial obligations, your day-to-expenses, and your lifestyle at large. Remember, you do not have to go with the first personal loan plan suggested by the personal loan EMI calculator and can compare as many options as you would like.
Simplifies loan planning
Personal loan EMI calculators are designed to help you understand how much interest and the principal is payable for a particular loan amount. Because of the convenience of use,personal loan EMI calculators have become the go-to way of calculating EMIs. Moreover, a personal loan EMI calculator does not only provide how much EMI is payable. It also gives you an amortisation schedule/ table for the entire duration of the personal loan. An amortisation schedule might sound verbose, but it means a schedule or table that displays a breakup of the loan amount you have to repay over the tenure. The amortisation table shows the exact percentage of the principal and interest rate payable each month up to the end of the loan tenure. The amounts in the amortisation schedule are equal during the loan tenure. Having access to this table can help you plan out your loan payments beforehand and ensure you do not default in making payments. It helps you evaluate your lifestyle and financial needs and factor in how you will set aside the designated EMIs for the loan repayment. Without planning and prepping, paying for a loan every month can get difficult.
In recent years, personal loans have become increasingly popular because they don’t require collateral and can be utilized for a variety of purposes. Even though they have slightly higher rates than other loans, like a loan against property, many borrowers opt for a personal loan because they do not require collateral and work well in times of emergency and financial constraint. Using a personal loan EMI calculator is now the first choice for borrowers over offline calculations. Poonawalla Fincorp understands that however enabling a personal loan can be, it can also make your life revolve around repayment. Therefore we suggest, as with every other financial decision, you must take a personal loan only after evaluating factors like the loan amount, your repayment capacity, interest rates, loan tenure and more. A personal loan EMI calculator is the only way to ensure precision and clarity when applying for a personal loan.