personal loan EMI calculator can aid better loan management

How a personal loan EMI calculator can aid better loan management

A personal loan is a type of unsecured loan which is availed by a large number of people each year to fulfil their immediate credit requirements. What sets this loan apart from other lending products is the fact that you can use the funds for any purpose you like;it could be for immediate medical expenses, wedding, home renovation, car repair, vacation or anything else. However, just like any availed credit, you need to repay the personal loan too, within the pre-decided timeframe. A personal loan EMI is the means through which you repay a personal loan, bit by bit each month.

About personal loan EMI calculator

Although personal loan comes with plenty of benefits for the borrower, it could soon transform into a liability if not repaid in time; sometimes even denting the credit score. Hence, it is always better to take a personal loan after proper planning, so you can manage the EMIs without any problems. A personal loan EMI calculator constitutes an integral part of such preplanning. It helps you ascertain the monthly EMIs based on the tenure and interest rate of the personal loan.

The basic formula used by any personal loan calculator available out there is as follows:

EMI = [Px(R/100)x{1+(R/100)}^N]/[{1+(R/100)}^(N-1)]

P = Personal loan amount you wish to borrow

N = Repayment tenure in months

R = Interest rate per month

How it helps in personal loan management

A personal loan calculator offers multiple benefits, enabling the borrower to plan his/her finances in advance, thereby ensuring timely repayment of the personal loan.

Saves the trouble of doing complicated calculations – Using the personal loan EMI calculator can save you plenty of time which otherwise would be wasted in carrying out complicated EMI calculations. It delivers results in a matter of a few seconds, in fact as soon as you input all the details and press the ‘Submit’ or‘Calculate’ button.

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Offers accurate results – The only way you can manage your personal loan better is if you’re well aware of the concerned figures in advance, and are confident about their accuracy. A personal loan EMI calculator delivers instant accurate results, giving you the complete picture of how your financial obligation will look like should you go ahead with the personal loan offer. The portals that offer such calculators take extra care about the accuracy of the results as inaccurate figures can change the prospective borrower’s mind, and lead to revenue loss for themselves as well as their associates.

Facilitates better financial planning – As a personal loan calculator provides a fair idea about EMIs that need to be paid over the loan’s tenure, you can review your financial situation and take a call whether you’ll be able to make the monthly repayments or not. You can even make adjustments to the personal loan amount if the EMI is going beyond your budget. The idea is to help you avail a loan that doesn’t make you stretch yourself financially, and to do away with the possibility of default.

Evaluation of multiple schedules – Another important way in which a personal loan EMI calculator aids better management of the loan is by providing you with multiple amortization schedules; and the corresponding EMIs for different interest rate and tenure combinations. Resultantly, you can go with the EMI that suits you the best.

If you’re keen on using a personal loan calculator to check your eligibility for a certain loan amount, you can visit the platform and do it right away.