Budgeting for your personal loan EMIs is an important step you should not overlook, but manual calculations can be time-consuming. Moreover, the manual process isn’t simple and leaves room for errors. Thankfully, you can avoid this with a personal loan EMI calculator which is easily accessible. All you must do is enter the loan amount, tenure, and interest rate in the personal loan EMI calculator and you get an estimate of your monthly installments instantly.
Using a personal loan EMI calculator to determine your EMI is key to making an informed decision. Because you can get personal loans online, a personal EMI calculator also enables you to compare and find the best deal for you. This is because it provides a clear picture of the best personal loan interest rates offered by various lenders.
To understand why using a personal loan EMI calculator is better than doing manual calculations, read on.
1. Provides easy accessibility
One of the best advantages of using a personal loan EMI calculator is easy accessibility. Be it a desktop PC, laptop or even a smartphone, you can calculate your EMIs on the go with this online calculator. All you need is internet access and a browser to use this tool. On the contrary, calculating EMIs manually can be quite difficult and time-consuming. With easy access to the personal loan EMI calculator, you can find the ideal loan terms with ease.
Not only does this help you to select an ideal loan, but it also helps you gauge some of the best personal loan interest rates available in the market. Additionally, you can use this tool as many times as you like, whether you avail of the loan or not.
2. Computes EMIs easily
Given that manual EMI calculations are a cumbersome process, it can be difficult for you to compare different personal loans online. A personal loan EMI calculator, on the other hand, is automatic and calculates your EMIs instantly.
Follow these simple steps to use a personal loan EMI calculator.
● Enter the loan amount you want
● Select a suitable repayment tenure
● Choose an applicable interest rate (default selection in some tools)
With just a click of a button, your EMI amount gets calculated. This allows you to get results significantly quicker and helps you find a suitable deal more efficiently.
3. Allows you to find the best repayment tenure
Given that your EMIs are spread throughout your loan tenure, using a personal loan EMI calculator also helps you assess the repayment period. For instance, if your loan amount is Rs.1 lakh for a tenure of 18 months with an applicable interest rate of 11%, you will have to pay an EMI of Rs.6,052. To lower this value, you would have to increase the tenure and such calculations are easy to carry out with a digital tool.
This is because a longer tenure means more instalments, which reduces the amount payable with each EMI. Conversely, a shorter tenure means fewer instalments, resulting in a higher EMI. You can use a personal loan calculator as many times as you want, without any restrictions.
4. Provides accurate results every time
The formula used to compute a personal loan EMI differs from that of other loans. The formula used to calculate a personal loan EMI is:
EMI Amount = [P x R x (1+R)^N]/[(1+R)^N-1]
● Here, P indicates the principal amount
● R is the rate of interest
● N is the repayment window in months
This formula is complex and requires you to convert values. Errors here will lead you to calculate the wrong results, thereby affecting budgeting and planning. However, with a personal loan EMI calculator, you need not worry about the formula as it follows a set algorithm. Based on the parameters you enter in an online calculator, the tool outputs accurate results.
A personal loan EMI calculator ensures that you get all the information you need to avail of a suitable loan. By changing various factors like loan amount, interest rates and tenures, you can compare various personal loans online and choose the one that best suits your finances. You can also plan your big-ticket expenses by availing of the feature-rich Bajaj Finserv Personal Loan.
With a repayment tenure of up to 84 months and competitive interest rates, you can avail of up to Rs.35 lakh with no hidden charges. Use the personal loan EMI calculator to calculate your EMIs and efficiently plan your borrowings. To get started and get funds easily, check your pre-approved offer online and get a loan without any hassle.
This article is generated and published by FPJ focus team. You can get in touch with them on fpjfocus@fpj.co.in
