Reasons to use an EMI calculator before applying for a Personal Loan
A Personal Loan is a versatile credit instrument that you could use to cover your financial requirements. Whether paying for an unexpected home renovation, covering the cost of a luxury international trip, paying for a medical emergency, or taking care of the costs related to a wedding, you can apply for a Loan.
Such a Loan is an excellent way to keep your savings safe while conveniently managing your big-ticket expenses. While a Personal Loan offers a flexible and quick financial solution, you need to clearly understand your financial responsibilities before committing to this Loan. This is when an online Personal Loan EMI Calculator can prove helpful. Here are essential reasons for using an EMI calculator before applying for a Personal Loan:
Plan the monthly budget
A Personal Loan lets you meet your big-ticket expenses conveniently. However, if managed poorly, its repayment could affect your monthly budget. Using a Personal Loan EMI Calculator before you apply for a Personal Loan can help. This free tool allows you to enter the Loan amount, Loan tenure, and interest rate and calculate the potential EMIs of your Personal Loan.
This way, you can determine how much money you need to keep aside each month to repay the Personal Loan and plan your budget and finances accordingly. The calculator can also assist you in borrowing only as much as you can repay comfortably.
Saves time and offers accurate results
You can calculate the potential EMIs of your Personal Loan manually. However, calculating them manually is not only complicated but also time-consuming. Manual calculations are also prone to errors. Instead, you can instantly determine the results using an online Personal Loan EMI calculator. It is also easier to experiment with different parameters using this EMI calculator.
Build a plan that works for you
When using an online Personal Loan EMI calculator, you could experiment with the different parameters to create a plan you are comfortable with. For example, if you want to lower your EMI, you can increase your Loan tenure or reduce the principal amount you need to borrow until you are satisfied with the results.
This way, you can customise your Loan and make easy payments every month without facing any economic inconveniences. You can also utilise this EMI calculator to compare Personal Loan options from multiple banks.
Offers a transparent repayment plan
Using a Personal Loan EMI calculator can give you a clear understanding of the interest and principal payouts each month. You might also get an amortisation schedule that lets you plan the repayments throughout the tenure of the Loan.
Conclusion
A Personal Loan is a multi-purpose Loan that you could utilise to cover your immediate monetary needs. However, before applying, it’s best to research and utilise a Personal Loan EMI calculator to estimate your EMI obligations.