Confused about your personal loan repayment strategy? Here’s a way to clear out the haze.
No matter what you need funding for, a personal loan is always there to help you out during times when you are in need of quick cash. A personal loan has many advantages– they’re easy to avail, they take very little time to get approved, and there are no restrictions on how you use the loan amount.
However, the main problem with personal loans in India is that people sometimes take up a personal loan without being sure about how they’re going to handle their expenses. Due to lack of proper planning a lot of people end up defaulting on their loans.
But there’s an easy way to manage your personal loan.
The EMI calculator
Lenders and financial institutions have come up with an effective way to let the borrower understand what they’re getting into before they take up a loan. Available for free use on almost all lender websites, EMI calculators are one of the easiest tools that borrowers can use to help them out with their loan planning. After taking in your details like amount of loan, tenure and interest rate, the calculator gives you a fair idea of how much EMI you’ll have to pay and how you should budget your finances.
How it works
EMI calculators are super-easy to use and understand. Anyone with basic knowledge of the internet can operate them to get acquainted with the expenses they’ll have to incur when they take up a personal loan. Here’s how these calculators work.
- You feed in the loan amount that you’re looking to borrow.
- After that, you pick the tenure which you will be comfortable with.
- Once that is done, the interest rates that are available to you will be displayed.
- Based on these numbers, you will be given an estimate of how much EMI you’ll be paying through the tenure of the loan.
Armed with this knowledge, you can easily plan your expenses and draw out a budget that works with your income and savings.
The Benefits of an EMI calculator
Using an EMI calculator can be really advantageous for you.
- You get to know exactly how much money you’ll spend each month
- You’ll know for sure if you can actually take up the loan
- You can compare offers from as many lenders as you want
- You get a clear understanding of your loan through graphs and tables
- Works like a personal loan eligibility calculator and lets you know if you can actually apply for a loan or not
In essence, an EMI calculator lets you become your own banker and eliminates the need of approaching an agent to understand the loan options offered to you. If you’re looking to avail of a personal loan, find a free EMI calculator online and ease the tension of figuring out whether you need a loan as well as which lender you should apply for a loan with.