While determining your objective, whether it’s associated with the education of your child or acquiring a car, you are required to compute the amount you need to save and the actual total cost of your borrowing. The apparent factor here is that the future worth of your goal will vary from your current value as inflation will boost the worth of the corpus you require. Therefore, planning is vital and most significantly you are required to figure out the total cost of your borrowing so that you can plan for other matters.
A personal loan EMI calculator helps you determine priorly about most of the factors when you take out a personal loan, it helps you figure out the very close EMI amount that you will be required to repay.
If you are still not convinced then don’t worry, below are the top 5 benefits of using personal loan EMI calculator that are definitely going to allure you to use it in planning your borrowing:
- Calculates and displays precise outputs instantly
Manual computations are tough and doubtful to errors but an online personal loan calculator displays output precisely and rapidly. This special calculator drives using the EMI formula which renders you error-free outputs within a matter of seconds.
Additionally, this tool is easy to use and you can take its help as many times as you would like to. All you are required to perform is put the principal amount, rate of interest, and the repayment tenure as per your preference and the personal loan calculator will demonstrate your equated monthly instalment (EMI).
- Helps in determining the tenure and the principal
While using the personal loan EMI calculator, you can modify the figures of the loan factors as many times as you would like to. For example, if you figure out that your EMIs are so high, you can either reduce the loan amount, increase the tenure, or do both to make them more affordable.
Although, remember that the longer the tenure, the higher you will need to pay the interest amount. On the contrary, when you are selecting a shorter term, it will maximize your EMI but you will have to pay lesser interest amount.
Consequently, adapt the figures for the tenure and principal until you reach a structure that is financially feasible in accordance with your repayment capability.
- Renders loan amortisation schedule
You can see a loan amortisation schedule while using the personal loan EMI calculator. It shows your in-depth personal loan EMI breakdown. It makes it possible for you to strategize upfront and enjoy benefits potentially on the basis of facts.
- Shows the entire visual representation of the payable amount
A personal loan calculator helps you figure out your equated monthly instalment, the total interest due, alongside the total due amount.
It also demonstrates you the same detail in a pie chart form which helps you figure out the total principal and interest amount. e.g., if you choose a loan of Rs.1 lakh for 12 months at an interest rate of 10%, you’ll see that your total payable amount will come Rs.1,05,499. In the break-up of this amount, you will find that 5.2% of it goes to interest and 94.8% goes towards the principal amount. Alongside, you will get to know that your EMI for each month across the tenure will be Rs. 8,792.
- Helps in opting the best lender
A personal loan calculator generates a result after determining the factors like interest rate, repayment term and the principal amount.
Even a tiny figure can put a larger impact on repayment and the EMI will be shown accordingly. That’s why, by freezing the principal amount and repayment term and entering the rates of interest of different lenders on personal loans into the calculator, you can figure out the most reasonable loan.
Once you come up with the list of best lenders, ensure to check the other features too on offer so that you can come up with the best out of those best deals.
The bottom line
Personal loans are unsecured loans, you are not required to promise any collateral or security and there is no limitation or the usage of the funds, although, similar to any other loan, you must know what you will have to pay on the interest factor.
You should apply for a personal loan only post assessing your finances duly. In this context, one tool that comes handy to plan your finance is a personal loan EMI calculator. The tool facilitates you to figure out the actual amount you are required to pay including principal and the interest amount in a certain tenure prior to availing the loan.
There is an abundance of online personal loan calculator that you can use. Almost every bank and leading moneylender has its own loan calculator, for instance, if you are HDFC Bank customer, you can use HDFC personal loan EMI calculator, having an account in Kotak Mahindra Bank then you can use Kotak personal loan calculator and likewise, if you have an account or you are a user of any moneylender, check out online through respective loan calculator to come up with the best deal.