Personal loan is one of the most popular loan options that can be availed to meet monetary crunch or financial shortfalls. This facility does not come with any end usage restriction and the loan proceeds are generally processed within 2-7 days of loan application submission. In case of an instant personal loan, the proceeds are disbursed within the same day of submitting the loan application. As lenders factor in the monthly income, credit score, repayment capacity etc. when assessing the application for personal loan, many may fail to make the cut. Out of these, some who fail to avail the loan are the ones who opted for it without factoring in their repayment capacity.
Loan application rejections due to poor repayment capacity can be prevented by using a personal loan EMI calculator. Using such calculators can assist you to determine whether your new loan EMI is under the preferred margin and accordingly help calculate the monthly cash outflow that should go towards a personal loan.
In addition, as a personal loan seeker, you should remember that higher EMIs result in shorter loan repayment tenure and lower interest outgo while lower EMIs lead to longer repayment tenure and higher interest cost. Thus, once you are aware about your EMI affordability, select the shortest repayment tenure to lower your interest outgo. Post financial requirement analysis; choose the tenure and EMI that best suits your needs while keeping
Crucial benefits of a personal loan EMI calculator
- Gives an estimate of the monthly EMI outgo
Input details such as your personal loan interest rate, loan amount, and tenure to calculate the EMI using the calculator. The EMI calculator computes the EMI amount that you would have to pay.
- Allows to make better decision by reviewing parameters that impact the EMI
Applicants’ loan amount, interest rate and repayment tenure play a crucial role in determining the total EMI outgo. Opting for longer repayment tenure results in smaller EMIs, higher interest outgo and vice versa. By using various permutations and combinations, you can change the fields and get to an EMI amount that fits your needs.
- Saves time and gives an accurate result
All the complicated calculations are performed in seconds using the personal loan calculator, which saves time. Also, these calculators reduce any chances of errors, which otherwise is likely via a manual calculation.
Conclusion
Keep various factors such as tenure, interest rate, your repayment capacity in min before you avail a personal loan. These factors can be easily taken care of with the use of a personal loan EMI calculator. Such calculators provide a rough estimate to the applicants, which provides a better understanding about their monthly fund outgo toward the loan and helps them apply for the loan as per their repayment capacity.
