Crucial Must-Know Aspects of Personal Loan EMI Calculator
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07 OCTOBER, 2022
A personal loan can be used to cover numerous expenses as it does not have specific restrictions on end-usage. Also, borrowers do not have to pledge collateral to lenders while applying for personal loans since these loans are unsecured. While these are great benefits, it is also important to make sure that the loan can be paid off. Borrowers that do not focus on getting a convenient repayment plan might later face struggles while clearing the loan’s monthly instalments.
However, this is not something that needs to be worried about. You can always use a personal loan EMI calculator beforehand to make sure that the loan is affordable. Reading about this calculator for the first time? Here are some key aspects of a personal loan EMI calculator that you should be aware of before applying for a loan:
1. Using a personal loan EMI calculator is easier than manually calculating EMI payments
Earlier, the only way to find out about a personal loan’s EMI payments was through manual calculations. However, making mistakes is always a possibility while manually calculating a loan’s EMI payments, which can then cause problems in repaying the loan. This is why using a personal loan EMI calculator is considered to be much more reliable as this tool provides accurate EMI results.
2. This calculator displays EMI results instantly
With the help of a personal loan EMI calculator, you can find out about the monthly instalments of a loan in no time! All you need to do is provide the calculator with details regarding the loan amount, the interest rate charged by the lender, and the repayment tenure. Based on these details, the calculator will display EMI results in no time.
3. A personal loan EMI calculator can be used to try out multiple EMI combinations
The only way of finding out which EMI plan suits best is to try out various combinations. This is exactly what a personal loan EMI calculator allows users to do. You can make changes in all three fields to arrive at an EMI value that you are comfortable with.
4. It can help in finding out whether the loan’s interest rate is affordable
A lot of borrowers are worried about the personal loan interest rates that lenders charge. To understand whether you are comfortable with the interest rate that your lender is offering, use a personal loan EMI calculator and see if the EMI payments are in accordance with your budget.
5. This calculator can also help in finding a repayment tenure that suits your budget
It is essential to choose a suitable tenure in which the loan will be repaid. While some would prefer choosing a short tenure to save money on interest payments, some would choose the longest tenure possible to make EMI payments easier. Use a personal loan EMI calculator and find a middle ground where you can save money and also pay off the loan within the boundaries of your budget.
You can use a personal loan EMI calculator for free at any time you want. Kotak Mahindra Bank has made this calculator available on its website where you can make use of it without having to provide any personal information.
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