A personal loan is an easy and quick way to manage urgent expenses, whether it’s a medical emergency, wedding, home renovation, or debt consolidation. However, before taking a loan, it’s crucial to plan your repayment smartly to avoid financial stress. This is where a personal loan EMI calculator becomes your best tool.
By using an EMI calculator, you can estimate the monthly instalments for your personal loan. Choose a comfortable repayment plan and ensure that your loan does not become a burden. With a personal loan from Bajaj Finance, you get attractive terms such as lower interest rates and flexible tenure. This helps in reducing your repayment burden, helping you plan your finances comfortably. Let’s explore how to get a personal loan with favourable terms and manage EMIs effortlessly.
Why Personal Loans Are a Smart Choice
Unlike home or car loans, a personal loan is an unsecured loan, meaning you don’t need to provide any collateral. With a Bajaj Finserv Personal Loan, you can benefit from:
- Quick Processing and Disbursal – You can get instant approval on a successful personal loan application and the funds are transferred to your account within 24 hours*.
- Wide range of usage – Use the amount to meet a variety of needs – travel, education, medical bills, or any emergency expenses.
- Flexible Repayment Tenure – You can choose a tenure between 12 to 96 months based on your repayment budget.
- Minimal Documentation – No complex paperwork; you can get the funds you need with just a few documents.
However, while a personal loan is convenient, improper planning can lead to high EMIs and financial strain. This is why an EMI calculator is essential.
How to plan your loan repayment effectively
A personal loan EMI calculator is an online tool that helps you determine how much you’ll have to repay every month. It allows you to:
- Estimate your monthly EMI before applying for a loan.
- Compare different loan amounts, interest rates, and tenures to find the best repayment plan.
- Avoid financial strain by selecting an EMI that fits your budget.
By adjusting the loan amount and tenure in the EMI calculator, you can check different repayment plans to suit your financial situation.
Imagine you need a Rs. 5 lakh personal loan for home renovation. Using a personal loan EMI calculator, you can explore different repayment options:
Option 1 – Faster Repayment:
- Loan Tenure: 3 Years
- EMI: Higher, but you save on the total interest paid
- Best for: Those who can afford high EMIs & want to close the loan quickly
- Loan Tenure: 5 Years
- EMI: Lower, but total interest paid increases
- Best for: Those who prefer smaller, manageable EMIs
By adjusting the loan amount and tenure in the EMI calculator, you can make a well-informed decision that suits your financial health.
How to Plan Your Personal Loan Wisely
- Borrow Only What You Need
It’s tempting to take a high loan amount, but borrowing more than necessary can lead to higher EMIs and interest payments. Calculate your actual financial need and apply for a loan accordingly.
- Choose the Right Repayment Tenure
Your EMI amount depends on your loan tenure:
- Shorter tenure → Higher EMIs but lower total interest paid.
- Longer tenure → Lower EMIs but higher overall interest cost.
Use an EMI calculator to find a tenure that balances affordability and interest savings.
- Compare Interest Rates Before Applying
Compare different loan offers and choose the one with the lowest interest rate for your profile. Even a small difference in rates can save you thousands of rupees over time.
- Maintain a Healthy Credit Score
A credit score above 685 increases your chances of getting a personal loan with favourable terms. If your score is low, work on improving it before applying.
- Check for Additional Charges
Before finalising your loan, check for:
- Processing fees and related charges
- Prepayment or foreclosure charges – Some lenders allow early repayment with zero penalty, helping you close the loan faster.
- Automate Your EMI Payments
Missing EMIs can result in penalties and a drop in your credit score. Set up an auto-debit facility to ensure timely EMI payments every month.
- Make Part-Payments When Possible
If you receive a bonus or extra income, consider making part-prepayments on your loan. This reduces the outstanding principal and helps you save on interest costs.
Conclusion
A personal loan can be a great financial tool when used wisely. Before applying, always use a personal loan EMI calculator to check how much EMI you can afford comfortably. This ensures that your monthly budget remains stable, and you don’t face repayment stress.
*Terms and conditions apply
Moneycontrol Journalists are not involved in creation of this article.
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