When you face an emergency situation or need some money for a big-ticket expense, you can explore personal loans as a quick financing option. They are easy to avail and the entire process can be completed within 24-36 hours. Personal loans are unsecured loans which means you do not need to pledge any collateral against the borrowed sum. Personal loans have become extremely popular during recent years due to the ease of sanction and multipurpose use. You can use a personal loan to handle your higher education expenses, fund an exotic vacation, foot some urgent medical bills or even expand your business.
What are the factors that you need to consider before applying for a personal loan?
When you think about availing of a personal loan you should consider the following three factors:
- Interest rates
- Tenure of the loan
- Repayment capacity
It is important to calculate the projected EMI correctly as it will help you take a premeditated decision based on your repayment capacity. Manually calculating personal loan EMI could prove to be inconvenient and inaccurate. It is always advisable to use a personal loan EMI calculator that is readily available online. The best way to determine whether a personal loan is suitable for you or not is to use the EMI calculator and arrive at EMIs that you are comfortable with based on the loan amount, tenure and interest rate you choose.
What is a Personal Loan EMI Calculator?
The EMI or equal monthly instalments that you will pay when you take a personal loan is a combination of principal along with the interest. A personal loan EMI calculator is an online tool that can be used to calculate the amount that has to be paid on a monthly basis for the entire tenure of the loan. This tool will help you to decide on the ideal amount, interest rate and tenure that is most suitable for your requirements. You will be able to accurately assess the impact of the loan on your monthly cash flows and future lifestyle. It will help you make an informed decision regarding the personal loan.
When you apply for a personal loan at LoanTap you will need the following documents –
- Copy of PAN card
- Address Proof (Aadhaar card, Driver’s Licence)
- Salary slips or income proof for the last three months
- Savings bank account statement for the last six months
- eNach Mandate
Remember that you can apply for a personal loan only if you are an Indian citizen and resident over 21 years of age with a monthly income of over Rs 30,000.
The interest rates tend to vary from lender to lender. At LoanTap the personal loan interest rates start at 18%.
What are the benefits of using a Personal Loan EMI Calculator?
We have suggested that you should use a personal loan calculator before you apply for a personal loan. Let us examine the benefits of using a personal loan EMI calculator.
- Helps Accommodate the EMI in monthly cash flow by tweaking the budget
- Ensures that you have taken an informed final decision after trialling for different permutations and combinations
- Ensures a healthy CIBIL score
- The tool is Fueled with Convenience and ease
- Saves time and ensures accuracy
Accommodate the EMI in monthly cash flow by tweaking the budget
Once you calculate the correct EMI, you will be able to factor it into your monthly budget and adjust your monthly expenses accordingly. It will not come in as an unpleasant surprise if you are aware and yet flawed at the outset.
Ensures that you have taken an informed final decision after trying for different permutations and combinations
The three factors that determine your EMI are Loan amount, tenure and interest rate. When you use an EMI calculator, it becomes convenient to calculate the EMI for different loan amounts, different tenures and different interest rates. The EMI has a direct correlation with loan amount and interest rate while it has an inverse correlation with the tenure or term of the loan. The longer the tenure, lower the EMI and vice versa. Using an EMI calculator, you can try different combinations to arrive at the optimum EMI for your loan so that your lifestyle is not restricted.
Ensures a healthy CIBIL score
A good CIBIL score is necessary to get you a loan but prompt repayment is mandatory to retain the score. Any miss or default in EMI payments could result in a downgrade of your CIBIL score which would impair future loan taking possibilities. So, it is better to be cautious and use the EMI calculator before venturing into a personal loan. As they say, being forewarned is being forearmed.
Fueled with Convenience and ease
Using a personal loan EMI calculator is not rocket science. It is a simple tool that is available online. All you have to do is to enter the principal amount of your loan, the term of the loan in years or months and the interest rate. The calculator will derive the EMI that you will need to pay. This makes it very convenient for new borrowers who are overawed by the loan process and consider it too complicated for them.
Saves time and ensures accuracy
The manual calculation of loan instalments is complicated, time-consuming and a task that is prone to errors if you are not careful. Using a Personal Loan EMI calculator ensures that the complex calculations are completed in seconds. You can calculate different scenarios including periodic prepayments or foreclosure and be aware of the cost and benefits involved. Equipping yourself with the right information is very important before entering a loan agreement with a lender.
Conclusion
There are numerous benefits of using an EMI calculator to work out your loan calculations and arrive at the optimum loan amount that meets your needs and doesn’t affect your monthly budget by much. Make sure you use a personal loan EMI calculator before applying for a personal loan. Do visit https://loantap.in/ for all information regarding your personal loan requirements and we will be happy to help you.
