Unsecured loans like personal loans might help you bridge financial gaps and take care of your pressing needs. When done right, it is one of the smartest financial tools that can help you manage your finances. But to make the most of a personal loan you must know the financial calculations that go behind making the right call. But these calculations are complex. In this scenario, an online loan calculator can help.
Calculating your online loan EMIsis one of the most important and practical aspects of loan repayment planning. A loan’s EMI (Equated Monthly Instalments) refers to the regular monthly repayment of the loan’s principal over the loan’s term.
Features of a Calculator for Personal Loan EMI?
1. Accuracy
A personal loan EMI calculator helps you estimate your loan EMI accurately. You will have to adjust the total loan amount and the loan tenure at the lender’s give interest rate. This helps you estimate your monthly EMI and plan your budget well.
2. Save time
It would take a lot of time to calculate your monthly EMI using a pen and paper. With an online loan EMI calculator available on the money loan app, you can easily determine your EMI.
3. Comparison
A money loan app helps you compare the EMI and interest pay outs on the loan offered by different lenders. This makes it easy for you to choose the right loan offer without going from branch to branch.
4. Very adjustable
The fact that the EMI calculator present on the money loan app can be used indefinitely is their biggest feature. You can fill up the values in the calculator as many times as necessary until you are confident or satisfied. The parameters can be changed numerous times to achieve the desired outcomes.
How is your loan’s EMIs determined?
Principal Loan Amount plus Rate of Interest are the two factors used to determine your loan EMI. The cheaper your EMI is and vice versa, the longer the loan period. The following mathematical equations will compute your loan’s EMI:
Where, EMI = P* (r*(1+r) n)/((1+r) n-1)
P = Loan Principal Amount
r = Interest Rate
n= The number of years or the loan’s term
You must be informed of your monthly EMI amount to effectively plan the repayment of your loan. An online loan calculator available on the money loan app is the most useful and effective tool to help you receive precise and immediate results when checking and estimating your loan EMI.
- Personal Loan Amount: Your loan amount is the sum of all of your borrowings.
- Interest rates: Fixed and fluctuating interest rates are available for personal loans. Loans with fixed interest rates have an interest rate that doesn’t change during the course of the loan. That indicates that all EMIs up until the debt is repaid will remain the same. However, because the floating interest rate might change, the EMIs can also change periodically to changes in the base rate.
- Personal loan tenure: This refers to the length of time that the borrower has selected to repay the loan. Most banks provide loans with adjustable terms. This means that the loan length, which typically spans from 1 to 5 years, can be chosen by the borrower.
An online loan EMI calculator makes calculating your EMIs quick and simple. By modifying the amount, tenure, and interest rate sliders, you may obtain your loan EMI results instantaneously.
Why Use a Calculator for Personal Loan EMIs?
Every time you take out a loan, you must pay back the lender in equated monthly instalments. An online loan EMI calculator is used to figure out how much you must pay as EMI each month.
- Your time and effort are saved by the personal loan EMI calculator.
- You must apply a time-consuming and complicated formula to compute the EMI on your own. You could perhaps perform inaccurate computations.
- You will need to spend countless hours performing calculations connected to your loan if you do them manually.
- With only one mouse click, you may complete this work by using an online personal loan EMI calculator.
- You can use the online loan EMI calculator for free.
- You are informed in advance of your loan’s EMI, which helps you in deciding if you can suitably accommodate the loan in your monthly income.
- When comparing the loan alternatives provided by various lenders, it is advantageous to be aware of the amount of your EMI in advance.
Conclusion
When availing a personal loan, it is very important to think it through. Personal loan is a big obligation that would impact your monthly budget for months. That’s why you must do the necessary calculations to choose a loan offer that best suits your needs. Using an online loan calculatorcan help you know the loan EMI burden and the loan tenure in advance. This will help you make an informed decision.
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