A personal loan can be a big help financially when you are in a tight spot. You get easy access to funds and can use them for all purposes, be it to handle an emergency, fund home renovation, pay tuition fees, finance a trip, and keep your savings healthy. But when you take out a personal loan, you are responsible for repaying the borrowed amount plus interest. A small mistake or miscalculation can lead to high-interest payments, an extended loan repayment period, and an increase in your overall EMI burden. So, choosing a loan with terms that fit your budget and repayment timeline is important by using a personal loan EMI calculator.
A personal loan EMI calculator is a simple online tool that can help you estimate your monthly loan repayments. This is extremely helpful when you are planning your finances and want to know exactly how much you need to set aside each month for your EMIs. Here are 3 ways to use a personal loan EMI calculator to reduce your EMI burden.
Calculate your repayment schedule in advance
A personal loan EMI calculator allows you to calculate your monthly payments within seconds. By entering in your loan amount, interest rate, and repayment period, the calculator will calculate the total amount of money you will owe throughout repayment and how much you need to pay each month for this repayment plan to work out. This allows you to plan ahead and budget accordingly so that you don’t end up in an unmanageable financial situation. It also helps you avoid any late fees or penalties associated with missed payments.
Choose the right loan tenure.
A personal loan EMI calculator can help you find the optimal repayment period for your individual needs so that you don’t end up paying more than necessary in interest charges over time. This greatly helps borrowers with limited income or other financial obligations, like home or car loans, manage their EMIs effortlessly.
Identify the best interest rate for you.
Using an EMI calculator also allows you to compare different loans side by side so that you can choose the most suitable one depending on your financial needs and monthly budget. This comparison will help you decide which lenders offer better personal loan interest rates and a flexible tenure. You just have to enter all the details of different loans into the calculator one by one and evaluate the results.
For example, if you have a personal loan of Rs. 7 lakhs for 5 years at an interest rate of 12%, your EMI will be Rs. 15,571. However, if you use a personal loan EMI calculator, you can easily figure out that my searching for a lender who offers an interest rate of 10%, you can reduce your EMI to Rs. 14,873. This will save you Rs. 698 monthly and Rs. 8,376 yearly.
A personal loan calculator can help to reduce your EMI burden by making it more manageable. You can find the calculator online on the lender’s website; it only takes a few minutes to use. Once you know how much you can pay each month, click on the personal loan application option and start your application.