Taking out a personal loan is a big decision. Whether you are using the money to pay off pending bills or to finance a long-awaited vacation, it is essential to understand what your Equated Monthly Instalments (EMIs) will be like over time. Today, many lenders offer an online tool that can provide you with such guidance and it is called a personal loan EMI calculator.
With this online tool, you can quickly calculate your monthly instalments according to customised loan amount, duration, and interest rate so that you know exactly what to expect when deciding on different repayment strategies. This way, you can avoid potential pitfalls such as making late payments or incurring penalty charges due to missed payments, all the while ensuring that you achieve your financial goals on time.
Here are three ways how a personal loan EMI calculator helps you plan and take control of your finances better.
- Calculate your monthly repayments and total loan amount
With just three basic inputs – your loan amount, interest rate, and loan tenure, an EMI calculator can help you quickly calculate the amount that needs to be paid each month to completely pay off the loan within the designated period. This way, you can create a realistic plan to manage other expenses in such a way that your loan is paid off on time.
By using an EMI calculator, you can also identify potential risks associated with your planned strategy and make changes accordingly before taking on additional debt responsibilities.
- Compare different lenders to find flexible EMIs and tenure
By entering different loan amounts and interest rates into the calculator, you can find out which lender provides the lowest interest rate or offers more flexible repayment options. This gives you an opportunity to get the best deal possible on your personal loan while also ensuring that it meets all your financial requirements.
Moreover, it helps you to save money on interest over time and makes it easier to budget for future expenses without being constrained by the high personal loan interest rates of other lenders.
- Get insights into your finances
An online personal loan EMI calculator also provides insights into your current financial situation by providing detailed information about various aspects such as total costs, the remaining balance after every payment cycle, total interest due over the repayment period, etc., in the personal loan amortisation table. This information can be used as reference points while taking decisions related to borrowing more funds, opting for early closure options, etc.
With the help of an EMI calculator, you can click on the personal loan apply button more confidently. This valuable tool takes all the guesswork out and helps you schedule monthly payments, determine the total interest payable, estimate repayment periods, compare different lenders, track your progress throughout the repayment process, and get a detailed breakdown of the loan cost all within minutes. This way, you can repay your loan faster without overburdening your current finances.
Just ensure that you enter the correct variables to get accurate results so that you can stick to a budget and advance towards your financial objectives with confidence.