Personal loan EMI calculator: Know how it can help you to manage your finances
Personal loans are a great help to those who need quick cash for meeting emergency needs such as medical treatment or fulfilling desires for acquiring consumer goods or even going on a vacation. But the financial impact has to be calculated beforehand.
Kolkata: Personal loans are a great help to those who need quick cash for meeting emergency needs such as medical treatment or fulfilling desires for acquiring consumer goods or even going on a vacation. But the financial impact has to be calculated beforehand. Every borrower wants the financial impact of a loan to be the minimum and for the shortest period. None wants to drag` on with a `big EMI for a long time. This is where a personal loan calculator comes extremely handy. These are available online and at no cost.
Benefits of a personal loan EMI calculator
A personal loan EMI calculator is an online tool that is designed to determine the amount of EMI and the tenure of repayment. It tells the prospective borrower how much he/she has to pay every month toward repayment and for how long for completely repaying the loan. the clear benefits are:
Correct EMI projections: The most important point of a loan is what EMI it will impose on the borrower. The calculator can easily enable one to calculate the EMI on a loan one is looking for. It is calculated by typing in the amount of loan, interest rate and repayment period.
Budget planning: Once the EMI is calculated, it becomes easy for a prospective borrower to budget his/her monthly expenses since EMIs will consume a part of the income every month. You can also tweak the loan amount to find out whether the EMI comes within your budgetary needs and what you need to do to balance both.
Comparison between lenders: Before zeroing in on a lender, one needs to explore the market for terms and conditions that are the most favourable. Usually one checks what is the rate of interest, EMI applicable and repayment tenure if one takes the same amount of loan from different lenders. This is best done in minutes using the online personal loan EMI calculator. One can type in the various rates of interest and repayment tenure and find out the best condition for one.
This calculator helps in faster decision making and completely removes the need to visit banks to find out what they are offering.
A personal loan is an unsecured loan which carries a higher rate of interest compared to home loans, vehicle loans and education loans. Therefore, one has to be judicious in obtaining a personal loan. Financial strategists advise that one should not take anything more than the minimum amount of money required in a situation.