How Does Personal Loan EMI Calculator Help You?

Whenever an individual is in a situation where he or she needs urgent money to fulfill different needs, a personal loan proves to be a handy option. These needs can be funding a trip, buying some valuable asset, marriage, funding education or something else. Personal loan EMI calculator is one important tool that everyone should know whether going for a personal loan or after taking a personal loan. It helps individuals to make some of the major decisions related to their finances. All personal loan lenders (banks and NBFCs) offer the EMI calculator facility to help individuals in every way possible.

Before understanding the benefits of a personal loan EMI calculator, you should know about the EMI. Abbreviated for equated monthly installments, EMI is something through which individuals repay the personal loan amount. It consists of a portion of both principal and interest amounts. However, the share of both of them changes during each year of your tenure (up to a maximum of 72 months).

In this article, we will be discussing some of the major benefits of using the personal loan EMI calculator so that you can understand them better. Keep reading to know more!

Benefits of Personal Loan EMI Calculator that You Should Know

Before understanding the benefits of the EMI calculator, you should know that the personal loan interest rate is one of the important aspects of this tool. One of the most important concerns for any individual who is going for a personal loan is to choose an affordable personal loan interest rate so that he or she can enjoy an affordable repayment amount. Now let’s know the benefits of this tool.

Repayment Estimation

One of the major benefits of the personal loan EMI calculator is that individuals can have an early estimate about their repayment amount (EMI) by putting in a few details. These details are the required loan amount, personal loan interest rate, and tenure. The results will be the EMI amount according to these details and you can check whether this amount fits within your monthly income or not. You should not choose an EMI amount above your repayment capacity otherwise you may default.

Estimation of Savings in Personal Loan Balance Transfer Facility

With the personal loan balance transfer facility, you can transfer your outstanding principal amount to another lender at lower interest rates. This can help individuals save a substantial amount both in EMI and interest outgo. Other than this, if you are going for a prepayment facility, you can also use the personal loan EMI calculator to know how much amount you can save when you choose to repay the amount before the fixed tenure.

Endlessly Flexible

One of the best things about the personal loan EMI calculator is that an individual can use the tool as many times as he or she wants by putting different details into the tool. So, if you do not get the results according to your expectations, you can put different values into it until you get results according to your convenience.

Choose the Suitable Personal Loan Interest Rate

When going for a personal loan from any lender, choosing a suitable interest rate is one of the biggest concerns for any individual. That’s where an EMI calculator can help you where you can put two different interest rates with the same loan amount and tenure. According to the results, you can easily choose the suitable one for you.

How to Use Personal Loan EMI Calculator?

After knowing so many benefits of this tool, you must want to know the functioning of this tool. To use the same, you will need to put in a few details - Required personal loan amount, rate of interest, and tenure. As soon as you put these details into the tool, you will get the EMI amount, interest amount, and total amount payable over the chosen tenure.