Whether it’s a luxury vacation, the latest gadgets, university fees or dream weddings, personal loans can help you a lot. Today’s FinTech has eased the loan application process. It’s digital and paperless. So, you can apply for such loans in just a few hours.
But before you apply for a loan, check some facts and figures. Be responsible with your money. Many factors can help you get good deals on the repayment process.
Use a personal loan EMI calculator. You now know how much you can afford. You can select tenure and principal amount. This tool helps you make good borrowing decisions.
But using such a calculator can seem tricky. So, read to learn how to use a personal loan calculator. Also, we discuss financial planning.
Concept of EMI
Equated Monthly Instalment or EMI is a type of loan repayment. It includes both interest and principal. There are three factors. They are loan amount, interest rate, and tenure. This tool helps you plan your finances. You need to know the EMI amount in advance. So that it doesn’t affect your monthly budget and expenses.
The formula used for arriving at the EMI is:
EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
Here, P= Principal loan amount, R= Rate of interest, and n= Number of monthly instalments.
Who can apply?
Anyone can apply for a personal loan. But banks prefer salaried individuals between the age of 21 to 60 age. They need to work in:
- Government Institution
- Private sector
- Public sector
- MNCs or related companies
- Partnership Firms
- Proprietorship concern.These salaried individuals should have a minimum income of INR 25,000 monthly. Also, they need 6 months of work experience in the current organization.
But if you are a freelance or contractual worker, submit bank statements for 6 months and more.
Do you want to find out if you are eligible for a Personal loan? Check out Personal Loan Eligibility Calculator by Piramal Finance.
Financial Planning with Personal Loan EMI Calculator
Saves you from performing complex calculations
A personal loan EMI calculator gives you results in a moment. You can manually calculate a loan’s EMI. But many find the process lengthy and messy. Also, the chances of errors are high. So, a personal loan EMI calculator makes the whole process easy. You need to input the data like interest rate, tenure and principal amount. You get the result in the next moment. It saves a lot of time and energy. Also, the chance of error is almost negligible.
Aids in selecting the most affordable interest rate
One important issue that impacts your EMIs is the interest rate on your loan. The interest rates differ depending on the lender. The total amount of the loan amount depends on interest rates. Also, your loan amount and loan term impact your EMI. Based on these limits, calculate your EMIs using a Personal loan EMI calculator.
You can also change values in inputs. This helps you identify better terms for your loans. For example, if you increase the tenure of the loan, the EMI decreases. Evaluate EMI options depending on the tenure or interest costs. This helps you be in a better position for loans.
A precise picture of your monthly expenditure
Tracking your EMIs and credit payments is stressful. Many times, due to unfortunate incidents, you may not be able to fulfil your obligations. So, a personal loan can help you in these situations. Use a personal loan EMI calculator to receive a full breakdown of your EMIs. It enables you to pre-estimate your monthly outlay. Make effective plans according to this.
An EMI calculator gives you an amortization schedule. This explains the principal and interest payments due for the specified year. It also displays the remaining principal and interest due once a given year’s EMI has been paid. This information may be helpful when creating a budget and considering a partial pre-payment.
Helps you decide on the tenure of the loan
As was already mentioned, the duration of your loan influences the amount of your EMI. You may use the EMI calculator to estimate your expenses for various loan terms. If you want fewer EMIs, choose a longer term. It’s important to remember that doing so can have an impact on your interest outflow. A short tenor is the best choice to reduce your interest charges. The EMI is much higher here if you can manage the payments smoothly.
A reasonable loan term gives you the financial breathing room to make payments easily. Try several periods in an EMI calculator to see which tenor is ideal for your loan.
Reduce the chances of default on EMI payments. Plan carefully your personal loan EMIs. Hence, always calculate your EMI in advance. A simple little tool like the EMI calculator is immensely useful and free. Such a tool can prove to be a saviour for you.
Piramal Financial is the ideal destination if you’re looking for a dependable finance partner to meet your financial requirements. We offer an easy-to-use personal loan EMI calculator for budgeting your payments. The service is free, simple, and always produces accurate results.
Piramal Finance’s services also feature 0% pre-payment and foreclosure fees, minimal documentation requirements, quick sanction times, immediate payments, etc. In addition, we offer you flexible loan terms and affordable loan interest rates. Additionally, there are absolutely no additional prices or hidden fees. In every loan transaction, we take care to maintain full transparency. Go to our website right away!