Financial planning helps you manage your monthly expenses astutely and save a bit for a rainy day. However, unforeseen circumstances can never be fully anticipated and you may, at times, need more money than you have saved. This is where personal loans come in handy, as they are offered without collateral and have no restrictions on usage.
But just because a personal loan is offered without collateral doesn’t imply you should apply for one without doing your homework. Before you click on the ‘personal loan apply’ button, use a personal loan EMI calculator on Bajaj Finserv for an in-depth analysis of your loan scheme. Failing to do this may lead to a situation where you cannot keep up with your monthly repayments.
An EMI calculator or a personal loan interest calculator is terrific for all loan applicants. It allows you to determine your personal loan EMIs in advance and helps you plan for your repayment strategy. Let’s check out the Bajaj Finserv Personal Loan EMI calculator in more detail.
What is a personal loan EMI calculator?
A personal loan EMI calculator is self-explanatory. It calculates your monthly EMIs, total interest amount, and total repayment amount. Just enter the loan amount you need, key in the personal loan interest rate, and choose a convenient tenor. Based on your inputs, the EMI calculator will display your monthly installment amount, the overall amount you pay as interest on the principal, and your total repayment liability. Bear in mind that the Bajaj Finserv EMI calculator is just an indicative tool and banks will determine your loan interest rate only after assessing your financial credibility.
How does an EMI Calculator work?
Here’s how a personal loan EMI calculator works for the mathematically inclined.
The calculations are based on the formula: EMI = P × r × (1 + r)n/((1 + r)n - 1) where P= Loan amount, r= interest rate, n=tenure in number of months. Yes, you can use pen and paper and calculate everything yourself. But why bother when an EMI calculator will do it for you accurately and in a snap!
Advantages of using EMI calculators
Here are the main advantages of using an EMI calculator:
Compare Loans: EMI calculators are a terrific way to compare various loan offers. Since the personal loan interest rates vary from bank to bank, you can key the numbers into an EMI calculator to gauge your monthly repayment liability for each case. A personal loan EMI calculator will tell you instantly if a particular loan scheme is suitable or unsuitable for your financial situation.
Choose the right tenor: An EMI calculator lets you play around with different tenor options and arrive at the right one for your needs. The tenor and EMI are inversely related, which means the longer the tenor the lower the EMI, and vice versa. As long as the EMI amount is manageable, you will not find it burdensome to pay off the loan.
Calculate the total interest: A personal loan EMI calculator also gives you a breakdown of your repayment scheme. It will tell you your total repayment amount and the component you pay off as interest on the principal. All this important information is available at a glance if you use an EMI calculator on the Bajaj Finserv website.
Save time: Remember that mathematical formula? Imagine using it every time you need to calculate something to do with your loan. Even calling up the loan department of different financial institutions every time you have a doubt is impractical. The solution – get online and use a personal loan EMI calculator that gives you all the details you need instantly.
A personal loan EMI calculator enables you to make a well-informed personal loan decision. You can check your equated monthly instalments, total interest amount, total repayment amount, and scheduled repayments with the Bajaj Finserv EMI calculator. An EMI calculator will help you choose the right tenor for your personal loan and allow you to pay it back without any problems. If you plan to apply for an online personal loan, you can also use an EMI calculator to compare offers from various banks and choose the best one for yourself.
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