In the world of financial planning and management, personal loans often stand as an indispensable tool. However, understanding the financial implications of a personal loan can be complex, especially when it comes to equated monthly installments (EMIs). This is where a personal loan EMI calculator comes into play, providing a simplified approach to calculating the EMI so that you can check if it is the right option for you or not. Here we will tell you everything about the LoanTap EMI calculator and how it works.
What is an EMI Calculator?
An EMI calculator is a financial tool used to estimate the fixed monthly payments one needs to make for loan repayment. The calculator considers the principal amount, the loan term, and the applicable interest rate, giving users a clear projection of their repayment obligations. By using these variables, individuals can assess affordability and plan their finances accordingly. Essentially, an EMI calculator simplifies the complex calculation behind loan repayments, providing a user-friendly way for borrowers to grasp the financial commitment tied to their borrowing. This tool helps in making informed decisions and budgeting effectively for loan repayments.
Benefits of EMI Calculators
Easy to Use
You only need to enter a few simple details in the calculator, such as the desired loan amount, interest rate, and loan term.
Time-Saving
You can save the inconvenience of visiting the branch in order to obtain this information because the results are displayed almost immediately.
Consistent and Accurate
Without any calculation errors, the calculator reliably displays the answer. You may modify your inputs to get the desired result.
Compare and Choose the Best
You can determine the precise EMI you would have to pay for each lender by entering the various interest rates that apply to different lenders.
Simplifies Loan Planning
A personal loan EMI calculator will show you the complete amortisation schedule in addition to the EMI that is applicable to you. When you know the EMI amount you will have to pay, you can manage your finances well.
How Does Personal Loan EMI Work?
Determine the personal loan EMI amount requires the use of a specific formula which is standard across all calculators available online.
EMI = [P x R x (1+R)^ N] / [(1+R) ^ (N-1)]
Where,
P= Principal Amount
R= Rate of Interest
N= Tenure
How to Use LoanTap’s EMI Calculator?
The LoanTap EMI calculator is a handy tool that calculates the monthly amount payable to lenders. To calculate the EMI applicable to your loan amount, follow the below steps.
- Open the official website of LoanTap.
- Click on Personal Loan EMI Calculator.
- Enter the personal loan amount, interest rate and tenure.
- The complete breakup of EMI and EMI schedule will appear on the screen.
Conclusion
The LoanTap EMI calculator acts as a financial compass, guiding borrowers through the process of loan repayment. It can simplify the calculations and give the exact EMI amount based on essential loan parameters. This tool makes the complete repayment process easier
