With relatively easy application process and simple eligibility terms, personal loans have gained in popularity over the last few years. To add to this, most lenders have streamlined the borrowing process, making it faster to avail of funds.
However, a personal loan should only be taken after evaluating certain aspects, such as the amount you borrow, the applicable interest rates and the repayment tenor, so that your personal finances aren’t strained.
Though collateral-free, a personal loan is still a financial responsibility and a failure to repay your loan will affect your lifestyle and CIBIL score. You can eliminate all margins of error by using a personal loan EMI calculator.
An EMI calculator is an online tool helps you accurately estimate your EMI over different tenors and for different principal amounts, making the process of planning your repayment easier. Here are five ways in which a personal loan EMI calculator is a must-use to plan stress-free repayment.Monthly interest rate, total loan amount, and repayment tenor directly impact your monthly EMIs. The EMI amount is directly proportional to the monthly interest rate and total loan amount and inversely proportional to the repayment tenor. Therefore, a longer repayment tenor would result in lower EMI payments. On the other hand, a shorter repayment tenor would result in higher EMI payments, but reduce your total interest outgo. Using a personal loan EMI calculator, you can calculate EMIs for different repayment tenors and interest rates.
Considering the EMI calculator’s accuracy, you will be able to see the smallest difference that varying interest rates makes to your monthly EMI payments and the total interest payable. Further, you can compare interest rates and repayment plans offered by different lenders and choose the best available option. Using a personal loan EMI calculator ensures that you choose the right loan amount, which you can easily repay without constraining your finances and lifestyle.EMI is calculated using the following formula
EMI = P × r × (1 + r)n/((1 + r)n − 1)
Where P is the principal or the total loan amount
r is the rate of interest
n is the repayment tenor in months
So, if P = Rs. 20 lakh and r = 15% with n = 60 months, then your total EMI payment is Rs. 47,580
Calculating monthly EMI payments manually is complicated, time-consuming, and leaves you open to committing errors. However, a personal loan EMI calculator guarantees accurate results in a few seconds. All you have to do is enter the total loan amount, rate of interest, and repayment tenor, and the calculator displays the exact payable EMI amount. Moreover, it helps you calculate different EMI amounts for varying loan parameters instantly and without hassles.There are several personal loan EMI calculators available online for free. You can choose any of these and easily calculate and compare EMI amounts and repayment plans of different lenders. All you need to do is enter the loan parameters or tweak them as per your needs any number of times.
As you can see, using a personal loan EMI calculator not only simplifies your borrowing experience, but also helps you make a well-informed decision. Another tool you can use is the personal loan eligibility calculator to know your eligibility for a personal loan. This helps you apply only for the loans you qualify for and thus, save time and keep your CIBIL score from taking a hit. This happens when multiple lenders conduct a hard inquiry to check your score.
So, use a personal loan EMI calculator to compare and choose the best lender for yourself. Apply for the Bajaj Finserv Personal Loan and get up to Rs. 25 lakhs at an attractive interest rate and easily repay the loan over a tenor of up to 60 months. Also, you can opt for the Flexi facility to borrow as you need and lower your EMI payments by up to 45% during the initial tenor.
With a hassle-free application process, you can easily apply online and gain approval within 5 minutes! To avail of instant financing via a customized deal, check your pre-approved offer from Bajaj Finserv today
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