Calculate And Compare Your Loan with Online Calculator
A loan is a sum of money that is borrowed and can be used for a variety of things, including schooling, automobile purchases, debt relief, unanticipated bills, and even property purchases.
Because of improved public awareness, financial organizations like banks now provide their clients with a variety of loans. These include auto loans, personal loans, and so on. You must use an online loan calculator to compare your loan to other available loans to get the best lending choice for you.
The purpose of these types of loans is to ease the borrower’s financial burden to fulfil and achieve their life goals.
How does Loan work?
After you get approval for the loan, the funds are deposited in your bank account in a lump sum. And thus, depending on the lender, the transfer gets done within 24 hours. And once transferred, you will need to start making monthly payments in the form of EMIs after the loan is disbursed. Most loans have fixed interest rates that you have to pay every month.
It’s a kind of loan that doesn’t require security or collateral, and you can use the fund you get from this loan for any of your personal needs. One of the best parts about a personal loan is that it is unsecured; you don’t have to put in any collateral. All you need is a good credit score which is 750 or above. It has a flexible tenure option ranging from 1 to 5 years.
Personal Loan Calculator – A personal loan calculator helps you quickly calculate the amount of your personal loan EMI. With this tool, you can easily plan your finances and set your budget for future spending accordingly. It is designed to help you balance the inflow and outflow of money so that you can seamlessly navigate through your finances without any financial setbacks.
How does a Personal Loan Calculator Work?
To calculate your Personal Loan EMI amount, you can use the following formula:
EMI Amount = [P x R x (1+R)^N]/[(1+R)^N-1] where P, R, and N are variables. This means that the result will also change anytime you change these three values.
Here P is the principal amount
R stands for rate of interest
N is the number of years meant to repay the loan
Here’s an example of the same. Let’s say you took a personal loan worth INR 8,00,000 at an interest rate of 15% for two years; this is what you will need to pay as EMI.
EMI = [8,00,000 x 15/100/12 x (1+15/100/12)^24]/ [(1+15/100/12)^24-1]
EMI = Rs 38,789
You can accrue your car loan from a bank to buy your dream car. Today, you can quickly get car loans at affordable rates, provided your past credit score is in a good condition. Without much hassle, you can choose your monthly EMIs. The car loan EMI is a fixed amount you can pay in monthly instalments.
Car Loan EMI Calculator- A car loan EMI calculator helps you calculate the car loan instalments you will need to repay to the lender at the applicable interest rate. All you need to do is fill in the loan amount, tenure, and interest rate.
How Does it Work?
You can easily calculate the Car Loan EMI Amount using a mathematical formula:
EMI Amount = [P X R X (1+R)^N]/[(1+R)^N-1], where P, R, and N are the variables. Every time you change these values, the result will also change.
P means Principal Amount
R means Rate of interest
N is the number of years for the repayment of the loan
Fundamentally, it is life insurance that provides financial protection in case of unforeseen events. It gives you a substantial amount of coverage at meagre premium rates. Under this, the amount of the insurance is paid out to the nominee in case of the demise of the person insured.
Term Insurance Calculator: How does it work?- It is pretty easy for a user to use a term insurance calculator. All you need to do is enter a few details to get an estimated premium against your mandatory insurance coverage. Plus, you also need to provide your annual income along with the anticipated personal expenses and an increase in yearly revenue.
Along with all these factors, your age, gender, and birth are also considered.
A mutual fund is a vast fund managed by an asset management company that acts as a mediator for retail investors.
Mutual Fund Calculator: How Does it Work? – A mutual fund calculator uses the concept of future value. This concept helps in figuring out the maturity value of your investment.
For example, you invest INR 1 lakh in a mutual fund scheme for ten years. With this, you have an estimated rate of return of 8% annually. Here is how you can calculate your future value using this formula:
Future Value = Present Value (1 + r/100)^n
Present Value (PV) = Rs 1,00,000
r = Estimated rate of return at 8% ie 8/100 = 0.08
n = Duration of the investment ie 10 years.
Or after ten years.
FV = 1,00,000 (1+8/100)^10
FV = Rs 2,15,892.5.
This amount is the future value of your corpus after ten years. Other than this, you can also go for a SIP to invest in a mutual fund.
Planning for your future is a wise step that everyone should take. If managed correctly, loans, investments, and insurance plans can help you achieve your goals and dreams. The article above aimed to raise awareness among people aspiring for financial freedom in their lives and wanting to achieve their goals.
Also Read: Learn About Tax Exemption On Insurance: 2023 Edition
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