How & When to Use Personal Loan EMI Calculator?
Personal loans help us meet our financial needs easily. But have you ever used the EMI calculator present on the lender’s website? If not, use it. Because the online tool can help in repayment. Using the Personal Loan EMI Calculator, you can find your possible repayment amount. With that information, you can start planning your repayment. Make adjustments to your budget, so that the repayment is smooth during the tenure without any break with personal loan interest rate. Using the tool, you can know which tenure is suitable for repayment. So, continue reading this page further and know more about the Personal Loan EMI Calculator.
What is an Online Personal Loan EMI Calculator Tool?
It is an online calculator that uses the formula P × R × (1 + R)N/((1 + R)N – 1. So like any calculator, it generates results as you click on the button. So, for a calculative and beneficial repayment, use this calculator while applying for a personal loan.
From where do I get access to Personal Loan EMI Calculator?
You can use this calculator on the official website of the lender. To use the tool, follow the below instructions –
- Go to the personal loan section
- There you’ll see the calculator button
- Click on the ‘EMI Calculator’
- Insert your loan amount, interest rate and tenure
- Now, press the ‘Calculate’ button
- Your EMI and total payable amount will display
The repayment is also shown graphically for better understanding.
How is a Personal Loan EMI Calculator Helpful?
Well, it can help you in the following ways –
EMI Result
When you see the calculator result, you’ll know the possible EMI amount. By knowing the same you can know whether it is going to be difficult or easy for you to manage the same. By changing the tenure and loan amount values, you can see your EMI affordability. Upon getting the right tenure, you can end up having a smooth repayment of your loan. Otherwise, you’ll face problems during your tenure.
Interest Payout
Your interest payout will be high if the tenure is long. And usually, a personal loan comes with a maximum tenure of 60 months. So, if you opt for the longest tenure, you should know that the interest payout will be high as well. To solve your problem, use the personal loan EMI calculator. It helps you find the total interest for different periods. Choose a period wherein both the tenure and interest are affordable to you.
Early Closure
You can close your loan before the end of the tenure if you use the Personal Loan EMI Calculator. The tool generates an amortization schedule that shows the loan balance after each successful payment in a year. With that data, choose a period after which you can close the loan. Now, start growing your money by investing them in a good product. There are FDs, mutual funds and other products that can help you attain the sum required for prepayment, a term meant to clear off the loan before the original tenure.
So, use the Personal Loan EMI Calculator and find the right date for your prepayment. Because when you prepay a loan, you don’t have to pay the remaining interest component. For more blogs, Please Visit pop design
When to Use a Personal Loan EMI Calculator?
You can use this tool at the time of applying for the loan or during the tenure when you’re about to repay the balance amount. This way, you get the idea of the forthcoming EMI and savings. While calculating the savings due to prepayment, don’t forget to add the applicable fees. Because your lender may charge 2-3% of your loan balance as a prepayment fee.
So, from this article, you have learned the benefits of Personal Loan EMI Calculator. And if you haven’t used the tool, use it during the tenure to plan your prepayment. This is beneficial for you anytime.
