The simplest method of calculating a loan EMI is by using an online personal loan EMI calculator. Once an individual enters the variables attached to credit such as interest rate, principal amount, and tenor, this calculator displays the results within seconds.
A personal loan calculator not only allows aspiring borrowers to calculate their EMIs, but it also helps them plan their finances better than before.
Variables of a loan EMI calculator
Individuals are required to provide 3 information to calculate their EMI via personal loan EMI calculator –
- Loan amount
- Rate of interest
- Loan tenor
Once the data is inserted, the following formula is used to calculate and generate the EMI amount –
EMI = [P x R x (1+R) ^N]/ [(1+R) ^N-1]
- ‘P’ represents the principal amount,
- ‘R’ represents the rate of interest,
- ‘N’ represents the number of monthly instalments.
Benefits of using a personal loan EMI calculator
It is quick and accurate
EMI calculators can perform complex calculations within seconds. Otherwise, this calculation can take more time on paper. Therefore, such calculating tools can aid borrowers in making quick decisions. Additionally, the calculation ensures 100% accuracy.
It is easy to use
Personal loan EMI calculators are easy to use. Anyone can utilise it even without any prior knowledge. All they have to do is to enter the required details to see the results.
Helps in financial planning
A significant advantage of such personal loan EMI calculators is that these aid applicants to prepare their future financial plan. If borrowers calculate their monthly instalments beforehand, they will be aware of their fixed obligations.
By being aware of their liabilities, individuals can make the necessary changes to their expenses. They can prepare themselves to modify their finances when the EMIs commences.
Aids in making an informed decision
One of the vital features of such calculators is that it allows borrowers to customise results as per their requirements. Individuals can experiment with different numbers in the loan amount, interest rate, tenor, etc. They can calculate loan EMI as per their specifications and make an informed decision.
No charges required
These calculators are available for free online. Individuals are not required to pay any charges to use them. Various websites provide such calculators to its visitors to use it anytime and as many times as they want.
Select the best offer
Borrowers can use a personal loan calculator to compare several lenders and their offerings. Thus, they can select the best offer, which fulfils their requirements.
Some EMI calculators even provide additional information in the form of charts and graphs for better understanding. Individuals can also find their amortisation schedule with such tools, which can help for part-prepayment and foreclosure in the future.
Those planning to apply for a personal loan can take help of such EMI calculators to get an in-depth idea of their debt. Reputed financial institutions like Bajaj Finserv offer such tools, along with several others, on their official website.
The company offers personal loans at attractive interest rates and flexible tenor of up to 60 months.
Furthermore, the NBFC also provides pre-approved offers, which makes the personal loan application process smooth and less time-consuming. This offer is available on financial products like personal loans, business loans, credit cards etc. Aspiring borrowers can check their pre-approved offers by providing their essential contact details.
Nowadays, the reliance on credit to manage any planned or unplanned financial requirements has increased considerably. Financial products such as personal loans can help individuals to deal with such a liquidity crisis.
And, personal loan EMI calculators prove to be vital here. They provide all the necessary information to the borrowers to make an informed decision.