Applying for a Personal Loan garners numerous perks. It allows you to tend to immediate expenses and conveniently fulfil your monetary aspirations. However, before applying for one, you should consider a few aspects. Of them, two important ones are the Equated Monthly Instalment and the interest rates.
Now, manually calculating these aspects often leads to errors. It is also quite time-consuming. To save yourself from such hassles, it is wise to use a Personal Loan EMI Calculator. It is a free online tool that computes accurate EMI values instantly. This way, you can decide if the Loan is suitable. Here are the benefits of using the calculator:
- Eligibility criteria
Every Personal Loan has a different set of eligibility criteria. Without knowing them, you must never apply for one. Instead, it is better to use the calculator to assess your eligibility and repayment capabilities. As it is available online or through the Banking app, you can check these aspects before applying.
- Assists in budgeting
The calculator allows you to prepare monthly budgets. It gives you a definite EMI amount, letting make necessary changes to your expense list. As a result, you can plan out your monthly finances in a wiser way. You also gain clarity on how long it takes to go debt-free.
- Assessment of factors
Various factors influence your EMI. These include Personal Loan amount, interest rates, tenure, etc. The EMI is directly proportional to your Loan’s amount and interest rates. Meanwhile, it is inversely proportional to tenure. Hence, a longer tenure means smaller EMIs. An EMI calculator lets you assess these factors. It allows you to experiment with them. For example, you could try different amounts with different tenures. The calculator gives the exact EMI for any tenure.
- Healthy credit rating
When you calculate the EMI, you are better prepared. You make better financial decisions. You get an idea of how to manage your Loan repayments. The best part is that the calculator is also available on your smartphone. This further helps you manage your expenses better, enabling you to establish a healthy credit rating. It lets you calculate the different components of your Loan on the go.
- Easy to use
The EMI Calculator is readily available online. It is easy to use and understand. But you should know some details, like your principal amount, interest rates, tenure, etc. Once you enter these, the tool provides the exact values. You can make calculations anytime, anywhere.
- Saves time and energy
The calculator performs complex calculations within seconds. It gives you accurate values if you provide proper information. This saves a lot of time and energy. As there is no scope for errors, you need not go over the numbers continuously. This lets you make swift decisions confidently.