Things You Need To Know About Personal Loan Calculator

It is not an easy task to plan and manage your expenses. While keeping track of your daily income and expenses is easy, it takes a lot more effort to manage liabilities. A debt element requires careful planning in your finances. Each month, you need to repay a certain section of the debt. The headache of calculating your liability every month can be overwhelming. An easy way to manage your monthly expenses and liabilities is to use a personal loan calculator. 

Nowadays, you can find several calculators for personal loans online. To make use of one such tool, you will need to provide some basic details. Some of them are as follows: 

• The amount of money that you want to borrow
• The time for which you need the loan
• The rate of interest that the lender will charge from you

After filling in these details, the calculator will display various figures. These include the total interest paid, the total amount paid and the monthly repayment amount.

For this reason, using a personal loan calculator may seem to be the easiest solution. It will eliminate the need to perform extensive financial planning. Let us take a look at the top 10 things that you need to know about such calculators. 

What Do You Need To Know About Personal Loan Calculators?

Did you know that a personal loan calculator is an extremely popular tool that helps you in your loan journey? Here are some of the most relevant facts about these tools which make them very important.

1. Personal loan calculators are among the most accurate tools. They help you calculate the amount of EMI that you need to pay every month. By giving input on some values, you can estimate exactly what you will need to pay back on your loan every month.
2. Interestingly, you can use these tools without much guidance. They are very easy to use and require very little knowledge. Even if you are a novice in the financial field, you can use this calculator to your benefit and get an estimate of the EMI.
3. These calculators make use of elementary calculations. The formula to calculate EMI is as follows.

EMI = [Principal x Rate of Interest x (1 + Rate of Interest)^ Loan Duration in Months] / [{(1+Rate of Interest)^Loan Duration in Months} – 1]

1. A personal loan calculator does not require too many personal details. You can easily get an idea about the EMI owed by you. And you can do so without giving away too many of your details.
2. What is amazing about a personal loan calculator is that you can find one on the website of every lender from whom you want to borrow. So, there is no need to run here and there in search of a reliable calculator. You can find one easily with the same bank from whom you are about to borrow.
3. A personal loan calculator is also a great tool to check the rates of interest. In case you were not very clear about the interest that you had to pay, this tool will bring everything clearly into the picture.
4. Some advanced calculators can also help you estimate other variables. These include service charges, taxes and more. A calculator such as this one will come in great use for you if you want to know some quick numbers in a short period.
5. You can also access some calculators which are meant for specific loans. For example, you may find a calculator for an education loan on a lender’s website. These calculators will also account for moratorium periods. Using them, you will be able to get accurate results about plan repayment, interest and more.
6. Based on the type of loan you have taken, a personal loan calculator can calculate EMIs in two ways. It could be either based on the fixed interest rate method or the reducing balance method. Manually, it would take a lot of time and effort to obtain the correct values. But, using a calculator makes it so much easier to get the right values.
7. You can use a personal loan calculator to easily determine and track your monthly expenses for the interim of the loan. This will certainly help you efficiently manage your finances.

How To Use A Personal Loan Calculator?

It is very easy to use a personal loan calculator. Using one of these tools, you can get access to details like monthly payments, total interest payable, and more. The values will be based on the inputs that you enter in the calculator. The results obtained through this calculator are very helpful for several reasons. 

• You can consider different options before selecting any one type of loan. 
• You can assess different term durations or interest rates to check which scenario fits your better. 
• The monthly repayment figure will tell you whether it is going to fit into your budget. 
• The total interest value will give you an idea about the combined repayment that you will be giving to the lender. 
• You can easily change values to obtain a different set of results in no time.

So, in these ways, a personal loan calculator is just the perfect tool to get the financial results that will help you make a decision. Almost everyone today makes use of one such tool to make estimates about the loan options available to them. You can visit Piramal Finance to check the available loan options and use their loan calculator. Also, find a stream of financial knowledge for your use on their website and blogs. You are sure to get access to a wide array of information about the loan on this platform. So, don’t wait. Get started with a personal loan calculator before taking your next loan.