These days unexpected needs are increasing due to changes in the economy and high prices. Our savings are hardly sufficient to cover them. A personal loan is the most sort-after option in such cases. You can avail of the loan without collateral, and it is an ideal option for emergency funding.
Now, there are various factors involved in personal loans that need consideration. It is essential to thoroughly research before you apply for one. Using a personal loan EMI calculator is an excellent start to ascertain the loan amount you get. Let us understand the process of using it:
Enter The Following Details:
- Principal amount: Firstly, you enter the principal loan amount by adjusting the slider provided. The lenders pre-set these variables based on their policies in the EMI calculator for personal loan. However, the amount sanctioned is basedon your income, employment and other factors. Generally, you get up to Rs. 25 lakh as a loan. It varies according to the purpose chosen by you.
- Interest rate: You then inputyour preferred personal loan interest rate. These are adjusted in the tool by the lenders according to their offers. You select it from the drop-down menu or the slider provided. The rates vary from lender to lender. However, the typical personal loan interest rates range from six to 36%. It is best to compare them across lenders to get the best deal.
- Loan tenure: The last component required is the loan duration. It inversely affects the EMI payable. The longer the loan term chosen, the higher the EMI and interest rate applicable. Hence, select it wisely, depending on your needs and repaying capacity. Generally, you get personal loans for one to five years or from 12 to 60 months.
- EMI: The EMI calculator personal loan gives you the estimation ofmonthly instalments payable. These outputs are instant, which enables you to plan your repayment. The interest rate and loan tenure directly affect the instalments. The higher rate and term you choose, the higher EMI you have to pay. Hence, make sure to select it wisely.
- Loan amount: You also get to know about the loan amount payable. It provides the break-up of the interest amount and the principal to show accurateloan cost. You then plan your loan application and repayment accordingly. The higher the principal and interest rate you opt for, the increasing the payable loan amount gets.
It is an easy-to-use tool that provides quick results. You can use it multiple times as it is free. It helps you compare lenders and decide on the loan amount. Hence, making the loan application process hassle-free. It also enables you to plan your EMIs efficiently after the loan processing to boost your credit score.