As an economy with robust growth, India has seen a rise in the salaried middle-class with a high propensity to spend. Personal loans are a convenient financial product offered by reputed lending institutions at attractive interest rates to meet various financial requirements and fulfill aspirations. As per the apex bank RBI, the personal loans market is growing at a healthy pace of 12.3% which is expected to be sustained and even increase year on year.
These loans are available with flexible repayment tenures as per the convenience of the customer. Borrowers need to consider various aspects of the personal loan and the repayment options while applying for one to avoid an unnecessary financial burden during the loan repayment. Apart from that before going applying for a loan must check and analyze the interest rate on a personal loan for different financial institutions.One of the helpful tools for borrowers to make a wise and informed decision is a loan calculator. (Cal
What is a Personal Loan EMI Calculator?
A personal loan EMI calculator is a ready-to-use online tool offered by the lending institutions on their official website. As the name suggests, it helps calculate the loan EMIs that a borrower will need to pay every month to the lending institution to repay the loan. It helps the borrowers to apply for a loan according to their repayment capacity and avoid taking up an excess financial obligation which may lead to unnecessary debt in the future.
An online EMI calculator has other uses that can help decide on various aspects of a loan. Let us find out how to utilize a personal loan calculator.
Importance of an Online Personal Loan EMI Calculator
Personal loan approval depends on various parameters. Using an online calculator, individuals can calculate their repayment obligations based on these parameters. Make loan approval easier and more convenient in the following way:
- Determine the amount of EMI that can be conveniently paid: EMI is the primary concern of every borrower. One can estimate the loan EMIs in advance using the online calculator. It can determine the value of each EMI and the number of EMIs that a borrower will need to repay the loan. The borrower can calculate whether the loan is affordable or not. With such insights, the borrower can plan their expenses during the loan tenure to avoid any unnecessary financial issues.
- Choose the suitable loan tenure: The borrower needs to choose suitable loan tenure. The calculator can help find the right tenure for a borrower. If borrowers can afford to pay a large amount for EMIs, they can choose a short-term loan tenure, and if not, they can choose a long-term loan. A combination of different values and numbers of the EMIs should be tried to arrive at the most suitable tenure.
- Know your applicable interest rates: The interest rate depends on many factors, including the EMIs and the loan tenure. After determining the best EMI and tenure using the calculator, the most suitable interest rate should be determined.
- Know your loan eligibility beforehand to avoid a negative impact on your credit score: An online calculator can help you find out whether you are eligible for a personal loan or not. If not, you can avoid the consequences of a declined loan application on your credit score. A credit score plays an important role in the approval of the loan.
- Use it for free till you are satisfied with the outcome values: The lending institutions allow the borrowers to use it for free for as many times they want. Since values of all aspects related to a loan in the calculator are customizable, the values can be tried in different combinations to arrive at the most suitable and desired numbers.
This way, the personal loan calculator helps to compare the interest rate, EMI, tenure, etc., and get the best loan terms depending on the different values selected. Thus, an individual who wants to increase the chances of personal loan approval and avoid unnecessary financial burden while repaying the loan must utilize the loan calculator. With a credit score of 750+, it will be easy to get the loan approval.
Determine the loan eligibility within a few seconds and apply for personal loans offered by lending institutions with complete transparency and simplicity. Instant online applications can be made to get these unique and customized personal loans at competitive pricing and with minimal documentation.
The personal loan application online process is digital. The loan amount is credited into the bank account of the applicant directly after verifying your documents. The loan amount can go as high as Rs.25 lakhs for salaried and self-employed individuals to meet planned as well as sudden financial obligations.