Personal loans offer you collateral-free financing for a wide range of purposes, as there are no restrictions on how you can use the amount. However, just like every other loan, a personal loan needs to be repaid with interest. Therefore, you should apply for one only after evaluating your finances well. In this regard, one tool that can help you with financial planning is a personal loan EMI calculator. This online tool helps you arrive at a favourable loan structure, something that is key to personal loan repayment, without any effort. Take a look at the ways in which it makes financial planning easy.
It Computes and Generates Accurate Results Quickly
Pen-and-paper calculations are arduous and leave room for errors, but an online personal loan calculator generates results accurately and quickly. It has the EMI formula fed as an algorithm, which gives you error-free results in seconds, every single time. Moreover, this tool is simple to use and you can use it as many times as you wish to, free of cost. All you have to do is enter the principal amount, interest rate, and the tenor of your choice for the calculator to compute your EMI. With results from the calculator you can plan repayment to a T, even before you apply for the loan!
It Helps You Decide on The Tenor and Principal
When using the calculator, you can change the value of the loan parameters as many times as you wish to. For instance, if you find your EMIs to be too high, you can either decrease the loan amount, extend the tenor, or do both to make them more manageable. However, keep in mind that the longer the tenor, the higher your total interest payment will be. On the other hand, while choosing a shorter tenor will increase your EMIs, you will be able to restrict the net interest payable. So, adjust values for the tenor and principal until you arrive at a structure that’s financially viable as per your repayment capacity.
It Provides a Loan Amortisation Schedule
Each personal loan EMI comprises payment towards the interest and principal. Understanding this breakdown is crucial, especially if you are planning on part-prepaying the loan by utilising a bonus, for instance. A loan amortisation schedule, which you can see when you use the EMI calculator, displays your personal loan EMI breakdown in detail. It makes it possible for you to plan in advance and take beneficial decisions based on facts.
It Offers a Visual Representation of the Amount Due
An EMI calculator enables you to grasp how much you have to pay each month, the total interest due, as well as the total amount that is due. It also shows you this information in a pie chart as well, wherein you can view how much of your total payment is going towards interest and the portion that is going towards the principal. For instance, if you opt for a loan of Rs.10 lakh for 48 months at a rate of interest of 18%, you’ll find that your total due is Rs.14,10,003. Of this amount, 29% goes towards interest and 71% goes towards the principal.
It Assists in Selecting the Right Lender
In order to generate a result, the calculator factors in the interest rate charged by your lender. Even a marginal 0.5% difference can have a major impact on repayment and the EMI displayed will be a reflection of this. Therefore, by keeping the loan amount and tenor constant, and entering the interest rates of different personal loans into the calculator, you can find the most affordable loan. Once you shortlist viable lenders, do check the other features on offer to ensure a pleasant borrowing experience on the whole.
You’ll find that with the Bajaj Finserv Personal Loan, you can avail ample financing of up to Rs.25 lakh, for a tenor extending up to 60 months at competitive interest rate. There are no hidden charges here and you can get approval in 5 minutes with disbursal in 24 hours. Furthermore, by choosing the Flexi Personal Loan, you can lower your instalments by up to 45%. With this facility you can withdraw amounts from your sanction as you need to, on the go, and pay interest only on the sum that you use.
So, once you plan your loan with the help of an EMI calculator, avail an instant personal loan from Bajaj Finserv. Simply check your pre-approved offer and use a customised deal to apply.