Personal Loans are unsecured credits offered by a bank based on your ability to repay the Loan, employment history, income level, profession, and credit history. You can use a Personal Loan to meet any immediate needs or for various purposes, such as consolidating debt, paying for medical expenses, making home improvements, or financing a vacation.
To understand the meaning of Consolidation Loans, it is imperative to note that they have a fixed interest rate and a set repayment term, and the bank does not require collateral. You can repay multiple debts by consolidating them into a single borrowing at low-interest rates.
Benefits of using the EMI calculator
Nowadays, you come across multiple online tools to help you calculate your Loan eligibility and repayment schedule, such as the Personal Loan EMI calculator and eligibility calculator. Here are the benefits of using this tool:
- Helps in budgeting
A Personal Loan calculator can be a valuable tool as it helps you plan your budget and expenses by estimating the monthly instalment and interest amount. According to your financial situation, you can decide on an affordable Loan amount and a suitable tenure. It also lets you see how the monthly payments change and decide what is feasible for your budget.
- Interest rate comparison
Personal Loan calculators allow you to compare the interest rates offered by different banks. You can enter the Loan amount and tenure and then compare the interest rates and fees from different banks to make an informed decision and select a bank that offers the lowest interest rate, saving money on interest payments.
- Helps calculate the EMIs
EMIs or equated monthly instalments refer to the monthly amount you need to repay towards a Loan. You can calculate the EMI applicable to your borrowing based on the Loan amount, tenure, and interest rate. This helps you understand how much you need to pay each month and plan your budget accordingly.
- Saves time
A Personal Loan EMI calculator is a quick and easy tool which saves time and effort. Instead of manually calculating the interest rates, EMIs, and amortisation schedules, the calculator instantly gives you the required information without errors. Using this online device, you can also compare the interest rates and terms multiple banks offer.
- Helps in repayment planning
Personal Loan calculators help you plan your Loan repayment by providing the amortisation schedule. They show the breakdown of the EMI into interest and principal components for each month of the tenure. This way, you understand how much you must pay and arrange the funds accordingly.
Conclusion
Personal Loan calculators are important and powerful tools for making informed decisions about borrowing. By changing the variables endlessly throughout the day, you can ensure you get the best deal and determine your repayment affordability without straining your finances. You can find them digitally by downloading the Internet and Mobile Banking applications on your smartphone.
