Want to apply for a personal loan? A personal loan is categorised under the unsecured loan. It allows the borrowers to avail the loan fromrecognised banks or lenders by giving the collateral or assets.
There are many purposes, such as higher education, a wedding expense, business expansion, etc. to avail a personal loan.
As the personal loan is a collateral-free loan, it means that the borrower has to pay a high-interest rate as compared toa secured loan.
In terms of interest rates, a personal loan EMI calculator is used, which helps to calculate the interest that you have to pay every month in the form of EMI or instalments.
Let us dive into the following facts of the article to get a better understanding of personal loan EMI calculator.
What is a personal loan EMI calculator?
A personal Loan EMI calculator is a free calculating tool that helps you calculate the interest the borrower needs to pay on the loan amount. This tool also helps you assess how much you can take and the sum you set aside for the monthly repayments of the loan.
EMI calculator uses metrics such as the given interest rate, desired loan amount and loan tenure to calculate the accurate EMI.
Pros of personal loan EMI Calculator
Here we would like to tell you the benefits of the personal loan EMI calculator. If you want to opt for a personal loan and use the personal loan EMI Calculator to calculate the EMI, then you should read all the benefits given below.
1. Ease of use
One of the significant benefits of using the personal loan EMI calculator is the ease of use. It guides you at every step and makes your calculations easy.
2. Time Savings
You can save your time and get quick results by using the Personal loan EMI Calculator. It also saves your efforts. There is no need to stand in the queue bank if you use the personal loan EMI calculator.
3. Accuracy and consistency of results
When you make manual calculations, it may produce many errors and take too much time to identify the errors and rectify them. But if you use the personal loan EMI calculator, you will get 100% accurate results.
4. Allows for comparison of personal loans from different lenders
You can easily calculate the exact EMI on a personal loan by inputting the several values of interest rates that apply to the different lenders.
5. Simplifies the loan planning
These online calculation tools also give you the complete amortisation schedule and make your loan planning better.
As a personal loan is used for many purposes and it does not require collateral or other assets, they have gained massive popularity among people. Using the personal loan EMI calculator is the smarter choice over using the offline tools for EMI calculations.
It is suggested to only take the personal loan after evaluating the factors such as loan tenure, loan amount, repayment rates and interest rates, with the help of the personal loan EMI Calculator.