A personal loan is one of the best financial products that can help you meet your varied needs. To take a personal loan, you need not furnish any security or arrange a guarantor. Moreover, the process of personal loan application is simple and easy, making it a convenient source of borrowing. However, the ease of application can lead you to borrow more than required and push you in a debt trap. Therefore, you must borrow an amount that you can comfortably repay. You can check your affordability for a personal loan with a personal loan calculator. Here is a brief guide on a personal loan calculator.
What is a personal loan calculator?
A personal loan calculator is an online computation tool that helps you check your affordability and determine the amount of loan you must avail. With a personal loan calculator, you can calculate your monthly EMI and thus determine your affordability. After checking your personal loan eligibility, you can calculate your EMI value, total repayment and interest component within seconds with this calculator. To use the personal loan calculator, you need to input your loan amount, interest rate and chosen tenure.
Benefits of using a personal loan calculator
- Free and simple to use
It is simple to use and does not require your personal details. You can perform complex calculations within seconds with a personal loan calculator. Moreover, you need no special skills to use the calculator. All you have to do is, input the variable values to get the results.
- Accessibility and accuracy
While using the calculator, you need not stress about errors or wrong results. A personal loan calculator provides accurate results instantly. Moreover, it is accessible for everyone. You can find the calculator on the lender’s website for free. You can use the calculator any number of times and at any time of the day.
- Helps plan your finances
You can experiment with different tenure and loan amounts and get an EMI amount that you can repay comfortably. You can input different variable values to get the best tenure and loan amount for you. Also, it can help you get an EMI that fits your monthly budget. Moreover, you can also efficiently plan your finances with a personal loan calculator.
- Avoid defaults
By using a calculator, you can find your affordability and borrow an amount that you can repay with ease. This will help you avoid defaults and improve your credit score.
How to use a personal loan EMI calculator
- Visit a lender’s or an aggregator’s website and click on the personal loan tab
- Visit the personal loan calculator webpage
- Enter the loan amount you want to avail
- Enter your chosen tenure
- Enter the expected interest rate
- Your results will be displayed instantly
- You can change the variable values to get different EMI amounts
An EMI calculator helps you know your financial obligations beforehand. This calculator saves you from missing out on your EMI and repaying the loan faster. However, it is crucial to know that the values of the calculator are indicative.
