Does an EMI calculator help with personal loan repayment planning? | India is blooming
Do you need urgent funds to sponsor a sibling’s education? Do you need instant money to pay the medical bill after your father/mother is discharged from the hospital? Has your medical insurance reached its maximum and you need extra money to pay the bill? Or do you want to surprise your mother with gold bracelets she has her eyes set on for her birthday? Amid the celebrations and hopes, there’s a tense moment when you have to arrange a personal loan and wonder how to handle NDEs.
Now, personal loan applications have become easier as they can be done online or offline. Applicants can access a lot of information about their eligibility online to decide which lender they want to go with. Plus, most banks have simplified the whole process, making it easier for you to avail the funds. However, you should only apply for a personal loan after evaluating certain conditions – such as interest rate, repayment term, etc. – to manage your finances well.
Even though this type of loan is unsecured, it’s still a financial liability, and nonpayment can ruin your payment history and credit score. You can eliminate any margin of error by using a personal loan calculator that also includes the interest rate.
An EMI calculator allows you to accurately calculate your EMIs over different repayment terms for different principal amounts. Let’s read all its advantages –
Easy comparison – The interest rate, principal amount and term have a direct impact on your EMIs. EMIs are inversely proportional to your repayment term; therefore, the longer the tenure, the lower the EMI. On the other hand, if you plan to repay the entire amount within a few months, your EMIs would be higher. Therefore, using an online calculator to assess the EMI personal loan will help you decide the repayment term that suits you.
Time saving – One of the main advantages of using a PL calculator for EMI is that it gives you instant results without you having to do any manual calculations yourself. An online personal loan EMI calculator saves you the time and effort of physically going to a bank branch and waiting your turn to speak to someone. It also eliminates all errors that might occur due to manual calculations.
Simplifies financial planning – PL EMI calculators are designed in a way to help you understand how much interest you will pay on the principal amount. It is easy and convenient to use; as such, the calculators also provide a table for the entire duration of the repayment schedule. Therefore, it gives you the transparency you need to sort your finances accordingly and manage your monthly budget to comfortably accommodate the IME. For example, EMI on a 1L personal loan at 10.49% interest rate for 5 years is INR 2,149 and INR 3,250 for 3 years.
EMI calculators also help you calculate your prepayment cost on a personal loan. Be sure to discuss the fees and charges associated with pre-closing a personal loan with your bank. Use an EMI calculator today to find out what it would cost you to take out a loan!