A personal loan is a type of unsecured and unconditional loan. This means the borrower can use the funds for whatever reason without the lender raising any objection. Since this is an unsecured loan, the lender does not need to put up any security for the loan. This makes personal loans one of the best ways to raise funds when they are urgently required.
Taking any loan without proper financial planning is not recommended. When it comes to taking an unsecured loan like a personal loan, financial planning can be achieved by using a personal loan EMI calculator.
What is a personal loan EMI calculator?
A personal loan calculator is a calculator that finds out the monthly installment amount for a given principal, interest rate, and tenure. Using the calculator can help a prospective borrower find out the monthly installment amount for different combinations.
Here are some of the benefits of using a personal loan EMI calculator:
1. Easy to use:
A personal loan calculator is very easy to use. It requires only three inputs, the principal amount, the rate of interest and the tenure of the loan. Once these three items have been entered and submitted, the calculator throws out the EMI amount. In case of any error, it is easy to rectify the same and resubmit.
2. Helps compare the EMI for different lenders:
By entering the rates of interest from different lenders, a borrower can find out the impact on the EMI. This helps to find out the best lender and the best personal loan offer. However, it is better to use the personal loan EMI calculator before applying to different lenders. Multiple personal loan applications can adversely impact the credit score of the borrower.
3. EMI schedule:
Some personal loan calculators also provide an EMI schedule which shows the amount paid per month and the breakup into principal repayment and interest payment. This helps to understand the total amount paid out for the loan. It also helps with making decisions such as increasing or decreasing the loan tenure.
4. Free of cost:
Using a personal loan EMI calculator is free of cost. Lenders do not charge the customer to use such calculators on their website. This makes it one of the best tools to ensure that the right amount is applied for a personal loan.
5. Calculate total interest:
Personal loan interest calculators also show the total interest paid over the duration of the personal loan and the breakup every month. This can help to decide whether to pre-pay the loan or whether to foreclose it. Checking the total interest payment for different interest rates can help to negotiate better with the lender as well.
Taking any loan without proper financial planning is not recommended. When it comes to taking an unsecured loan like a personal loan, financial planning can be achieved by using a personal loan EMI calculator.
What is a personal loan EMI calculator?
A personal loan calculator is a calculator that finds out the monthly installment amount for a given principal, interest rate, and tenure. Using the calculator can help a prospective borrower find out the monthly installment amount for different combinations.
Here are some of the benefits of using a personal loan EMI calculator:
1. Easy to use:
A personal loan calculator is very easy to use. It requires only three inputs, the principal amount, the rate of interest and the tenure of the loan. Once these three items have been entered and submitted, the calculator throws out the EMI amount. In case of any error, it is easy to rectify the same and resubmit.
2. Helps compare the EMI for different lenders:
By entering the rates of interest from different lenders, a borrower can find out the impact on the EMI. This helps to find out the best lender and the best personal loan offer. However, it is better to use the personal loan EMI calculator before applying to different lenders. Multiple personal loan applications can adversely impact the credit score of the borrower.
3. EMI schedule:
Some personal loan calculators also provide an EMI schedule which shows the amount paid per month and the breakup into principal repayment and interest payment. This helps to understand the total amount paid out for the loan. It also helps with making decisions such as increasing or decreasing the loan tenure.
4. Free of cost:
Using a personal loan EMI calculator is free of cost. Lenders do not charge the customer to use such calculators on their website. This makes it one of the best tools to ensure that the right amount is applied for a personal loan.
5. Calculate total interest:
Personal loan interest calculators also show the total interest paid over the duration of the personal loan and the breakup every month. This can help to decide whether to pre-pay the loan or whether to foreclose it. Checking the total interest payment for different interest rates can help to negotiate better with the lender as well.
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