Personal loans are one of the most preferred options of individuals that are in need of funds to cover their expenses. Facing a shortage of cash is something that is quite normal, and in such cases, applying for a personal loan can be helpful in arranging for the finances required. This loan can help in taking care of medical expenses, academic bills, credit card payments, and so on. A personal loan does not have the restrictions on the amount’s end usage as those of an education loan or home loan.
Now, before an applicant decides to apply for a personal loan, it is essential for them to ensure that the monthly instalments of the personal loan can be cleared without any financial difficulty. No one likes to struggle with loan debt, and this mostly happens when a borrower does not plan their repayment before applying for the loan. To avoid these financial problems, a borrower should calculate the personal loan EMI payments beforehand.
To calculate these EMI payments, an applicant can make use of a personal loan EMI calculator. This calculator is an online tool that helps in displaying a loan’s EMI payments. To use it, one needs to fill up information in three fields:
- Principal loan amount
This is the amount that the borrower is applying for. An applicant can apply for a personal loan of Rs 50,000 and even go up to Rs 25,00,000 based on their eligibility for the loan. Make sure to only apply for an amount that is required. It is not advisable to apply for an excessive amount as it might get troublesome to clear it later. Even if there is no difficulty, an applicant will still have to pay more with the interest that is added to each EMI payment towards clearing a higher amount.
- Interest rate of the loan
Different lenders can offer different interest rates while offering personal loans. This is because each lender has varying terms and conditions based on which they determine their interest rates. A personal loan calculator will help in understanding whether the interest rate of the loan is an affordable option or not. Make sure to consider a couple of loan plans to check which lender offers a competitive interest rate that is suitable.
- Repayment tenure
Most lenders offer a period of up to 5 years to clear a personal loan. However, some borrowers choose to repay the loan sooner in order to save money on interest payments. The most important thing is to find a tenure that suits one’s budget. So, use the calculator to keep changing the values of the tenure to find a suitable EMI result.
Once a personal loan EMI calculator gets these details, it will display the monthly instalments of the loan. The applicant can keep making changes to these details in order to arrive at a suitable EMI result. This calculator is a free tool that is available on most lenders’ websites, so it is advisable to use it before applying for a personal loan