We hear the term EMI often in our daily lives. Whether you apply for Student Loans, Home Loans, or Car Loans, you pay the lender equated monthly instalments. Buy many other products like a mobile phone or a laptop on the EMI plan by paying the minimum amount on purchase and paying the remaining amount in the form of monthly instalments.
A Personal Loan is a credit instrument gaining popularity. It is unsecured and does not require pledging of assets or security against the amount. The best part is that the borrowed funds are multipurpose. The disbursement is quick and takes up to two working days after approval. Whenever you borrow it, you need to pay the principal and interest.
Calculation
Instead of calculating the EMI manually, you can save time and get accurate results using the free Personal Loan calculator. You get an idea of the monthly amount payable during the tenure and how the amount affects your expenditure and lifestyle.
Importance
Remember that the Personal Loan interest rates vary between banks. The longer the tenure, the lower the interest, and vice-versa. Compare them well before selecting the plan for long-term goals. The following are the benefits:
- Personal budget planning: After gathering information on the due amount you need to repay monthly, planning the rest of your savings and expenses becomes easy. Chart out your pending and future borrowings with an idea about all the EMIs. Knowing your financial state is a good idea.
- Loan tenure: When applying for a Personal Loan for self-employed, you can change the value and number of EMIs to find the most effective Loan tenure possible. You can also experiment with different amounts and terms to find the most convenient plan.
- Assured healthy rating: Prior knowledge of your financial statement enables the maintenance of a healthy credit score. If you know your instalments and repay them on time, the chances of missing out are slim. Improve your score by repaying the Personal Loan for salaried on the due date.
- Interest rates: Interest is the priority when applying for any Loan as they impact the final repayment amount. The calculator makes your job simpler by allowing you to choose and test out with different values till you get the best rates.
- Eligibility and accuracy: The calculator help you determine your eligibility for Personal Loan based on the information provided. The formula varies, but the risk of manual calculations and errors reduces. Hence, all the calculations are quick and accurate.
Accessibility: Use the online calculator on the Banking app conveniently 24x7. Customise it based on your preferences and compare the schemes using different combinations. Since it is multipurpose, use the funds for shopping, travelling, education, home renovation, and wedding expenses.