How Can The Personal Loan EMI Calculator Help You?

A lot of questions start hovering around in our head, when we think of taking a personal loan. How much EMI will I be paying every month? How long will I have to pay the EMIs? What is the interest amount that I’ll be paying? How much percentage of my salary will the EMI payment be? And, the list goes on and on. Only one thing can answer all of these questions - the Personal Loan EMI Calculator.

Knowing the EMI is the only way all your doubts and queries can be resolved. Once you have the EMI payment that you have to make every month, everything starts making sense. Now you will know how to go about your after-loan life, where to spend and where no to. Basically, it helps you plan better. The only way to determine your EMI is the Personal Loan EMI Calculator. I mean you can calculate it by yourself, but it involves complex calculations which can lead to errors.

Why Should You Use the Personal Loan EMI Calculator?

Facilitates Planning: If you know the EMI value well-in-advance, at least you’ll be clear about how to plan your monthly expenses. Personal loan takes away 10-20% of your disposable income every month as EMI payment. Knowing the EMI will help you do a better evaluation of your needs and wants. During repayment of loans, you should always give preference to needs over wants. Servicing the debt is of prime importance.

Bargaining Power: When you’ve access to some kind of knowledge, don’t you feel powerful? Similarly, when you’ve clarity about the EMI calculation, it helps you negotiate better with banks & NBFCs. Knowing the EMI and other calculations makes you feel confident and you can bargain easily with lending institutions.

Easy to Use: Imagine doing a calculation based on this formula,  EMI = [P x R x (1+R)^N]/[(1+R)^N-1], by yourself. It’ll be so complicated and will lead to errors. With the EMI Calculator, it’s all easy. It works just like your normal calculator. This EMI calculator takes three factors into consideration to determine the EMI. These are - Loan Amount, Tenure of the Loan and Rate of Interest. All you have to do is just enter these three details and the EMI results will flash on your screen within milliseconds.

Interest & Principal Ratio: Personal Loan EMI Calculator also shows how the personal loan progresses over time. How the ratio between the interest and principal amount change over time. Initially, the interest paid is higher than the principal amount. And as the loan closes in towards maturity, the principal amount is higher and the interest decreases. 

How to Use the Personal Loan EMI Calculator?

Don’t worry, this is not like some other technology that will give you anxiety. Using the Personal Loan EMI Calculator is not some rocket science. Infact, there is no science involved. All you have to do is just fiddle around with three sliders. These three sliders is what constitutes the EMI - Interest Rate, Tenure and Loan Amount.  Just move the slider or enter the loan amount you desire. Then, choose the interest rate you want from the bank. Lastly, enter the tenure you will be able to repay the loan. Hit enter, and the result will flash on your screen within milliseconds.

You can use the personal loan EMI calculator on the website of banks and NBFC. Alternatively, you can use the personal loan EMI calculator on the website of some financial technology companies.