Personal loan is a financial lifesaver. It allows people to get money instantly from a bank as a loan for big-ticket purchases, to plan a much-awaited vacation or for the wedding/education of son/daughter, etc, without dodging on their savings. However, with a personal loan comes the burden of paying EMIs – an equated monthly installment that one has to pay for a stipulated period of time to pay back the loan.
Typically, EMI depends on the loan amount and the loan term, which means the bigger the amount, the more will be the EMI. Also if you choose the shortest loan term, the EMI will be high. To help you understand more about EMI payments of a personal loan, an EMI calculator can come to your rescue. Note that, there is a different calculator for each loan types, so to calculate the EMI for a personal loan, a personal loan EMI calculator has to be used.
What is a personal loan EMI calculator?
It is an online tool that calculates the total number of monthly installments and the total cost of EMIs that you need to pay each month for a stipulated period. To calculate the loan EMI using online EMI calculator, you only have to input information such as principal loan amount, loan term and interest rate, followed by Submit/click to get the appropriate results. Using a personal loan EMI calculator, you can do as many calculations as you want for free with different data so as to calculate the best EMI that you can easily pay.
Formula for personal loan EMI calculator
To calculate the personal loan EMI, the online calculator works on the following formula: -
P. r. (1+r) ^n/ ((1+r) ^ n - 1), where,
• P = principal loan amount
• R = monthly interest rate
• N = loan tenure in months
What are the advantages of personal loan EMI calculator?
1. It helps find out the monthly loan installments in advance so that they can manage their finances in a better manner.
2. EMI calculators are free of cost so you can use it as many times you want with different details so as to reach the best EMI that you can easily pay.
3. Personal loan EMI calculators deliver 100% accurate results.
4. It helps save time and keeps you away from the physical excursion that you would get from visiting the bank in person and by standing in long queues just to get this small detail.
5. A personal loan EMI calculator makes it easy for you to compare loans offered by different banks. To compare, you just have to enter loan amount, tenure and interest rate offered by different banks. This way you can calculate different monthly installments and choose the one that fits your requirements.
6. It shows an accurate picture of how much a person needs to pay each month as a part of the EMI so that he/she can plan their finances beforehand and in a better manner without hindering their regular expenses.
By concluding the above topic, it is understandable that a personal loan EMI calculator makes the loan getting process simpler and faster. It eliminates the need to visit the bank every often to find out the loan EMIs and other details related to the loan. There are many banks and third party websites that provide this online tool to calculate EMIs. So if you are one planning to get a personal loan from any of the banks in India, it is advised to first do your research, calculate EMI with different loan terms, principal amounts, processing fees and interest rates and then visit the bank for the final process.