How can you Do your financial planning with an online personal loan EMI calculator?
Want to know how to plan your finances but don’t know how to do it? Have a personal loan but are unable to keep records and manage estimates? Want to know how to use an online personal loan EMI calculator? If your answer is yes, then you are on the right track.
In this article, we will discuss personal loans, interest on personal loans, the benefits of applying for a personal loan, a personal loan calculator, and how to use a personal loan EMI calculator for finance planning.
What is a personal loan and what are its best sources
A personal loan is an unsecured mode of loan where banks charge a certain amount of interest on the money they give you as a form of a loan. Here, you borrow money from a bank for a specific period to meet your needs, and in return, you pay it off in small instalments. Interest on a personal loan is low in most cases, so it is convenient for you to repay.
These types of loans do not require collateral or security funds and the processing time is also less. They are mostly taken for covering personal expenses like financing a big marriage, family trips, higher education, etc.
There are two sources that you should prefer to opt for a personal loan.
- Banks
Banks are the most popular and preferable sources. Banks charge very low interest on personal loans, which is why they are preferable. Banks also give you a reasonable amount of time to repay, which is about 12 months to 60 months.
- Private financiers
You can also apply to corporate financiers and companies for personal loans. However, they might charge a slightly higher rate of interest than what banks charge you.
In addition, some private financiers might not provide you with a good amount of time to repay your loan. Some of them also have a “hidden interest” to levy a higher interest on personal loans. Make sure you check their ratings before going to them for a loan.
Benefits of applying for a personal loan
The benefits of applying for a personal loan are as follows:
- Low rate of interest
Banks often charge you a low rate of interest on your loan, so that you can easily get rid of your debt.
- Quick approval
If you apply for a personal loan today, you will likely get the approval within the next 2 days. In case you have a good credit score, you are more likely to get it approved even within a day.
- No need for collateral
Unlike other forms of loans where there is a requirement for collateral, you don’t need one in a personal loan. Banks neither ask for collateral nor a security deposit at the time of filling out your application.
- Payable
Since the interest on personal loans is lower, and you get a decent amount of time to repay your loan, it becomes very convenient for you to deposit your EMIs.
- High flexibility
There is high flexibility both on the interest rate of the loan and the repayment period. You have the tailoring option, which helps in adapting everything according to your convenience.
What is a personal loan EMI calculator
So, you might have successfully opted for a personal loan, but you still have the burden of managing your finances. For that purpose, a tool is used, which is the online personal loan EMI calculator. This helps you find your EMIs, interest rates, principal loan amount, etc.
A personal loan calculator is an online, user-friendly tool that helps you calculate your monthly EMIs. It only needs the principal amount that you have borrowed from the bank, the interest on the personal loan and the period.
How to use an online personal loan EMI calculator
You need to follow the below-mentioned steps to use a personal loan EMI calculator:
- Enter the principal amount of the loan in the bar.
- Now, enter the interest on the personal loan that banks have charged you.
- Enter the tenure of repayment, within which you have to repay the loan.
- Now simply click on the “Calculate” option, and will you have your EMI amount right in front of you in no time.
Use an online personal loan EMI calculator to plan your finances
The most appealing advantage of the online personal loan EMI calculator is that it helps you manage your finances. It gives estimates about your interest and maintains track of your instalments.
Try to use the calculator to calculate your interest and instalments before applying for a personal loan. Put different loan amounts, interest rates and periods to get different values and compare. Comparing different values will help you decide what is best for you.
It would be better if you keep a record of your interest on a personal loan. This will help you curb your expenses and adopt wise monetary choices.
Conclusion
In India, the starting interest rate on a personal loan is 8.5% and goes up to 35%. So, to get a better deal, you should focus on improving a good credit score and maintaining good track history. Use an online personal loan EMI calculator to note down estimates and make decisions accordingly.
Well, do you like reading similar types of content? Then, you must visit Piramal Finance to read engaging content on topics like personal loans, finance, investments, SIPs, etc.