Are you looking to buy the latest smartphone, renovate your home or finally go on the long-pending family vacation? But, don’t have the funds to cover the expenses? A personal loan is the best answer. Easy, quick and convenient, it can provide you with access to the required funds without much of a hassle.
Now, you come to the big questions, “How much does the loan cost you every month and are you getting the best deal?”
The answer to all these questions and much more is right here at your fingertips. Make use of a personal loan EMI calculator and put an end to all your doubts.
What exactly is the “EMI”?
EMI (Equated Monthly Instalments) is nothing but the amount you pay month after month till you repay your personal loan. You pay the same amount, every month on a particular day till you finish paying the principal and interest for your personal loan. The principal is the amount you originally borrowed, and the interest component constitutes the interest charges you pay for the principal.
What does the EMI Calculator do?
It helps you figure out the right EMI that works for you, to finish paying off the loan. With the EMI calculator, you can decide on the amount you set aside for your EMI payments month after month. It also ensures that the EMI doesn’t pinch or strain your regular expenses.
Does the EMI calculator help to figure out the best Personal Loan?
A big Yes! With so many personal loans offers out there, it becomes confusing to decide on the right one. The EMI calculator helps you figure out the best deal by comparing different loan products in the market. You can use it to determine what your EMI will be when you take a loan from various lenders.
When you avail a personal loan, you have to first decide on the amount you wish to borrow, the loan tenure (period of the loan repayment) and the charges (interest rates) for it. Use an EMI calculator to figure out the various combinations. For instance, you can find out how much your EMI will be for a shorter tenure vs. a longer tenure and so on. It’s beneficial to work out the different combinations to help you choose the right one.
How does the Online EMI calculator work?
Using the EMI calculator is very simple. You just have to provide three details:
- The Loan Amount
- Tenure of the Loan
- The Interest Rates
For instance, if you want to figure out the EMI you have to pay for a loan of 7 lakhs, for three years, with an interest of 15% pa, you have to input all these three details in the calculator. It gives you the result within seconds.
It shows the following outputs:
- Monthly EMI
- The total interest you pay for the entire duration of the loan
- The total amount you pay (this includes both the principal and interest)
Apart from these, the calculator also displays a table called as “Amortisation Table.” This chart shows the following details:
- How much of your EMI goes to the interest repayment
- How much of it goes to the Principal repayment
- The total amount you pay every month
- The outstanding balance after an EMI payment
- How much percentage of the loan you have paid every month
All these details are displayed in an easy-to-understand graphic form.
Benefits of using an EMI Calculator
The EMI calculator is a boon for borrowers. By playing around with the three input factors, you can determine the right loan product for you. It does all the work for you without you having to do lengthy calculations manually. Make use of the Personal Loan EMI calculator to figure out the best personal loan terms that fit within your pocket.
You are on the verge of taking a personal loan. Not sure if you’re getting the best deal? Make use of an online EMI calculator to find the best loan product and choose the right EMI that fits within your monthly budget.