Whether paying off credit card debt, financing a home improvement project, or paying for an unexpected expense, a personal loan is the most convenient way of meeting your financial needs.
But your personal loan repayment should also be as convenient as applying for one. If you’re planning to take a personal loan but are unsure if it’ll fit your monthly budget, a simple way to calculate your EMIs before applying for the loan is using a personal loan EMI calculator.
What is an EMI calculator, and how can you use it? We’ll find out in this blog.
What is a Personal Loan EMI?
Like any other loan, you can select your desired repayment tenure when you apply for personal loan. During this tenure, you’ll have to make monthly payments to the lender for the principal and interest amount. This is known as Equated Monthly Installments or EMIs.
Your EMI value depends on multiple factors like the loan amount, interest rate, loan tenure etc. Further, if you opt for longer loan tenure, the amount of your EMI will reduce and vice versa.
What is a Personal Loan EMI Calculator?
With advancements in technology, you can now access any information at your fingertip. Your personal loan EMIs too. A personal loan EMI calculator is a digital tool that instantly calculates your expected EMIs. This value is based on the principal loan amount, interest rate, and loan tenure.
Using a personal loan EMI calculator is a simple and quick way of determining your potential EMIs before applying for a loan. This way, you’ll know how much money you must set aside every month for your personal loan repayment.
An EMI Calculator is a great tool to help you plan your finances. It helps you understand the amount of money you need to pay each month for a loan. It also helps you understand the total amount of interest you will pay over the loan tenure. This helps you plan your finances better and make informed decisions.
Using an EMI Calculator is simple. All you need to do is enter the loan amount, interest rate, and loan tenure. The calculator will then calculate the EMI you need to pay each month. It will also show you the total amount of interest you will pay over the loan tenure.
How Can You Use a Personal Loan EMI Calculator?
An EMI calculator makes it super convenient to calculate your potential EMIs. It has three main components-
- Loan Amount or Principal– The total amount you borrow from the lender and need to repay at the end of the tenure, along with interest.
- Rate of Interest– It is the rate at which you’ll have to pay the interest on the principal loan amount. It is expressed as a percentage.
- Loan Tenure– The period within which you must repay the entire personal loan amount with interest.
Follow these steps to use the EMI calculator-
- Visit the lender’s official website and navigate to the personal loan EMI calculator page.
- Enter your desired loan amount in the required field.
- Set a rate of interest that you’re comfortable with, along with your desired loan duration in months or years.
- Click on ‘Calculate.’
The calculator will automatically calculate your potential EMIs and generate results instantly. If you’re uncomfortable with the result, you can keep adjusting the loan tenure to arrive at a more desirable value.
To Wrap Up
An EMI calculator is excellent for knowing your potential monthly repayments before applying for a personal loan online. You can also check out leading lenders like IndusInd Bank to get competitive interest rates and maximum benefits.