Personal loans don’t require collateral and are quickly disbursed. They can be used for a variety of purposes including expanding one’s business, handling expenses for higher education, holidays or for any emergency. Hence, personal loans have become tremendously popular over the years.
Some of the most important factors that you need to consider before availing a personal loan are the interest rates, repayment capacity, and the tenure of the loan.
Manually calculating personal loan EMI could be inefficient or worse could result in an incorrect value. Therefore it is preferable to go with the personal loan EMI calculator. To check whether a personal loan is suitable for you or not, you can definitely make use of this calculator.
What is a Personal Loan EMI Calculator?
Whenever you take up a personal loan, you need to pay the principal along with the interest amount. A personal loan EMI calculator is a tool that is used for the calculation of the amount that has to be paid every month.
When you check the amount with an EMI calculator before taking up a personal loan, you would be aware of the monthly amount that you need to repay during your tenure. This will help you to understand the effects that would be seen on your spending and lifestyle because of the personal loan EMIs.
Must Read: How to Calculate EMI for Personal Loan
The documents required for a personal loan are listed below:
- Copy of PAN, Driving License/Aadhar Card/Voter ID/ Passport for Identity proof and Address proof
- Salary slips (for employed professionals) or income proof (for self-employed) for the last three months
- Savings bank account statement (for employed professionals) or current account statement (for self-employed) for the last six months
The personal loan interest rates vary from one bank to the other. It is pretty much essential that you compare the interest rates being offered by different banks to find the perfect one for you at the lowest interest rates in the market for personal loans.
5 Benefits of a Personal Loan EMI Calculator
Before you apply for a personal loan, you must use a personal loan EMI calculator. Some of the key benefits that one would experience with this calculator are discussed further.
- Fit in the EMI with necessary changes in the monthly budget
When you calculate the personal loan EMI, you would know the definite amount that you have to pay every month. You can decide all your monthly expenses throughout the loan tenure to fit in the EMI of your personal loan with ease.
- Make decisions by changing the factors affecting the EMI
Your loan amount, monthly interest rate, and tenure would play a very significant role in determining your EMI. The EMI would be directly proportional to the loan amount and interest rate. Also, it is inversely proportional to the tenure of the loan. Thus, if you choose a longer tenure, then the monthly installments would be small.
With the help of an EMI calculator, you would be able to experiment with different loan amounts with different tenures and interest rates. This will make it easy for you to decide the amount of loan you should take without causing any inconvenience to your lifestyle and finances.
- Ensure a healthy credit rating
If you have calculated the EMI before taking up a personal loan, you would be completely prepared to manage your finances for repaying the loan in the given time. You won’t be missing out on EMIs, and this would avoid a poor credit rating for you.
Must Read: Complete Guide About SMFG India Credit Personal Loan
- Saves time and provide accurate results
All the complex calculations are performed in seconds with the personal loan EMI calculator and this saves a lot of time. There are chances of errors when the calculations are done manually, but with the EMI calculator, there are no chances of errors, and you would be getting pretty accurate results.
- Easy to use and access
The Personal loan EMI calculator is available online, and it is pretty easy to use. All you need to do is enter the principal amount of the loan, interest rate, and the tenure of the loan to get the value of monthly installments that you would have to pay. This makes it very easy for the users to calculate the monthly installment from any place and at any time.
There are plenty of benefits of a personal loan EMI calculator, and some of the key benefits have been mentioned above. If you are willing to take up a personal loan, you must consider using the calculator for getting accurate and precise results effortlessly.