Bringing your dream to life is possible with the variety of instant loans at your disposal today. Personal loan is one such kind of loan that is available on the click of your fingertips through online and offline loan applications. The process is simple and hassle-free. You apply online, fill up the necessary details and upload the specified documents. The lender then checks your eligibility and decides whether to provide you the personal loan or not.
Although this process is easy to follow, there are several questions in the applicant’s mind about the interest rate, loan tenure, and monthly EMI amount. In order to make these calculations easy for people who apply for loans online or otherwise, lenders have developed a tool called the “Personal loan EMI calculator”.
What are Personal Loan EMI Calculators?
There are multiple parameters involved in the calculation of the EMI amount, such as the rate of interest, tenure of the loan, principal amount being borrowed, and whether the rate of interest is fixed or floating. A person who does not deal in finance would find it difficult to make these calculations accurately or even understand how it all works. This Personal Loan EMI calculator is therefore designed to make this calculation easy; anyone can calculate the applicable EMI by simply entering the information about the factors mentioned above. The EMI calculators are easily available online. All you need to do is input figures in the calculator interface and it will immediately show you the EMI amount.
When & Why are EMI Calculators Used?
EMI calculators can be used to calculate the EMI for any type of loan, such as home loan, personal loan, and even education loan. For EMI calculation, you must have the following information:
- Principal loan amount
- Tenure or duration of the loan
- Rate of interest
Now that we know that the EMI calculator is used to derive the EMI amount for any loan type, let us look at the reasons for using it.
- Convenience: First, calculating the EMI manually is very tedious and time-consuming. When you are looking to compare loans from various lenders, it can get very confusing and nerve wracking. The EMI calculator makes these calculations and comparisons instantly.
- Accuracy: While doing the calculations manually, there is always room for error. The slightest mistake could make your figures go haywire. Therefore, while making comparisons between lenders it is necessary that you get precise results in order to take the right decision.
- Clear picture: The EMI calculator gives you a clear picture in the form of graphics and repayment tables. You will have a better understanding of the interest amount you will be paying annually. The repayment table provides you with year-wise and month-wise statistics. Also, the EMI takes into consideration the processing fee while doing the calculations.
How to eliminate the use of EMI calculators in the new year?
Digital lending platforms are evolving. With the existing market size of borrowers, nearly all lenders are trying to bring innovations to the existing products in order to attract more consumers. Each product is designed in such a way that it can cater to various segments of the society. Customization and flexible terms of payment are making these products very attractive. The facility of getting instant approvals and quick disbursals have made it easier for people to access these products. Availability of these products online and on mobile apps have made it easy for people to compare products and choose the best one to suit their needs.
Even after knowing about all the advantages of these innovative loan products, some people may still hesitate in taking loans. One of the major reasons is the complexity involved in the calculation of the EMI amount. It may not be easy for everyone to understand the process of EMI calculations. To cater to this segment of people, there is a product called EMI Free Loan.
What is an EMI-Free Loan?
It is a new kind of personal loan in which you pay only the interest on the total loan amount every month. The principal amount remains unchanged until you make a bullet payment. Once a partial bullet payment is made towards your principal outstanding amount, the total outstanding balance reduces, and fresh interest calculations come into effect, based on the new outstanding amount. This loan provides you the flexibility to repay higher bullet payments depending on the availability of funds. If you have liquidity of funds you can close your account prior to the chosen tenure without any foreclosure charges. If you are unsure of which customized personal loan is suited for you, opt for an EMI Free Loan. The tenure of these loans is lower as compared to that for credit card or other bank loans.
Learn More : What are Bullet Loans and How do they work?
At LoanTap, we provide loans between ₹1,00,000 to ₹10,00,000, based on your eligibility. The bullet repayment needs to be made every 6 months, starting from the date of the first interest payment. The bullet payment is made every 6 months. For instance, the loan amount is ₹1,00,000 and tenure is 60 months, then the bullet amount would be ₹10,000 in every 6 months. There is no foreclosure or prepayment charges after 6 months of taking this personal loan.
Eligibility for EMI-Free Loan application
You are eligible to apply for this loan if you are salaried and your monthly income is more than ₹30,000. Individuals working for private companies or those in a government job obtain this loan based on their credit worthiness. The final loan amount is decided by the lender based on your credit score and financial history.
Documents required for applying for EMI Free Loan
There is no standardized list of documents as it may differ from lender to lender. But the basic documents required are listed below:
- Permanent Account Number (PAN)
- Address proof documents, such as ration card, Aadhar card, passport, and electricity bill
- Three months’ pay slips
- Six months’ salary account bank statement
- E-NACH mandate form
The lender may ask for additional documents for further verification, based on profile and requirements.
👉Explore LoanTap’s EMI-Free Bullet Loan
Conclusion
You can bid adieu to the hassle of searching for the loans that suit your needs. LoanTap is a one-stop solution to all your financial needs. So, why wait to fulfil your dreams? Get in touch with us for unmatched financial services.
