Personal loans can be useful to manage various expenses, from funding wedding expenses, home renovation, medical emergencies, travel/holidays, – and even consolidating high interest debt. But when it comes to loans, the word EMI (Equated Monthly Instalment) comes to mind. Not only do you need to consider the interest rate and repayment terms, but you also need to ensure that you can afford the monthly payments.
Calculating EMI manually could be inefficient or result in inaccurate numbers. Thus, it is recommended to use a personal loan EMI calculator to get a clear idea of your monthly repayments and plan your budget accordingly. Here are the top benefits of the EMI calculator that make you borrow smartly and put your best interests first.
- Easy usability and accessibility
A personal loan EMI calculator is an online tool offered by various financial institutions on their websites. To use the calculator, simply visit the lender’s website, navigate to the calculator, and enter the loan amount, repayment tenure, and interest rate. The calculator will then generate an estimated monthly repayment amount. As long as you input the right variables, the calculations are error free.
- You can compare different lenders for free of cost
A personal loan calculator is a free tool, so you can use it multiple times to calculate the EMIs for different loan amounts, interest rates and tenures. This makes it easy to check which lender offers the lowest personal loan interest rates. Moreover, you don’t have to pay any agent for making these calculations and comparisons. So, try experimenting with different loan amounts and hit the personal loan apply button after finding a loan that does not impact your monthly financial obligations, day-to-expenses, and lifestyle largely.
- You can maintain a healthy credit rating
A personal loan EMI calculator allows you to estimate your monthly repayments and how long exactly it would take to pay back the loan. This information can be used to plan a budget which can help you stay on track with your repayments. By making timely repayments, you can avoid any late fees or penalties and maintain a healthy credit rating.
- You can choose a suitable repayment tenure
The EMI calculator can also help you understand how different repayment options will affect your overall interest payments. For example, if you choose to make smaller monthly payments, you will end up paying more interest over the total loan tenure. However, if you opt for a longer repayment period, you can reduce the interest payable. To help you understand your EMIs better, most personal loan EMI calculators also give a graphical representation of your loan details (such as a pie diagram).
With these benefits, it is evident that using a personal loan EMI calculator is the first step to begin with the loan process. An EMI calculator gives you a complete break up of your repayment obligations. This way, you can evaluate your personal loan eligibility, repayment capabilities and keep an intact budget to avoid any repayment difficulties in the future.