A lot of borrowers prefer applying for personal loans to cover their expenses. It is quite normal to face a cash crunch at some point, and when an individual does, a personal loan can be very helpful. This is because this loan does not place any restrictions on the usage of the loan amount. Whether it is to pay academic expenses, clear medical bills, or even pay off credit card dues, the loan amount can be used for any personal expense.
Now, before applying for a personal loan, it is very important to make sure that the loan’s EMIs are affordable. This is because there have been borrowers who have struggled with repaying their loans, which is why it is very important to be aware of the personal loan EMI payments beforehand. This is where a personal loan EMI calculator comes in handy.
Using a personal loan EMI calculator is really simple. This is a tool that requires information to be filled in the following three fields:
- Loan amount
This is the principal amount that the borrower applies for. Most financial institutions offer personal loans ranging from Rs. 50,000 to Rs. 25,00,000. Now, do keep in mind that it is better to only apply for an amount that is needed. Some borrowers apply for a higher loan amount even though they do not need it just to have an additional financial cover. However, doing this could cause repayment problems and could even be more expensive. Make sure to strike a balance between applying for a sufficient cover and applying for a minimum amount.
- Interest rate
Any financial institution levies a certain interest rate on loans that it offers. Focusing on personal loan interest rates is an important aspect as these can significantly impact personal loan EMIs. Consider various personal loan plans to understand which lender is offering a competitive interest rate.
- Repayment tenure
This refers to the period during which the borrower pays off the loan in monthly instalments with interest. It is very important to choose a convenient repayment tenure as it impacts the loan’s monthly instalments. Most lenders offer a period of up to 5 years to repay a personal loan. Some borrowers choose to repay the loan sooner to save money on the interest payments while some prefer a long tenure to comfortably pay off the loan’s monthly instalments in smaller amounts.
So, this is how one can use a personal loan EMI calculator to find out about a loan’s monthly instalments beforehand. The best part is that this calculator can be used by anyone for free. Most financial institutions make this calculator available for free on their websites, which means that users can use this online tool anytime, right from their homes! It provides instant results with accuracy, which means that borrowers can learn about personal loan EMI payments by evaluating multiple personal loan plans in no time.