A personal loan is a prudent route to meet your instant financial worries and fund shortages with ease. This loan usually allows you to obtain funding of up to Rs 40 lakh with zero need for security and comes with simple eligibility conditions. However, before you hit on the personal loan apply button, you must ensure to evaluate your funding requirements and design a repayment strategy based on your cash inflows and repayment capacity. By following this measure, you can meet your financial mismatches by the deadline and even avoid falling into any debt trap. For quick decision-making and planning, you must use an online personal loan EMI calculator.
The online calculator easily computes any complex calculation in just seconds. So, by using the online calculator, you can avoid manual computations, which are often prone to errors and are time consuming. In contrast, an online calculator instantly computes accurate and error-free personal loan EMI, overall interest outgo and overall loan cost.
How does a personal loan calculator work?
An online personal loan EMI calculator generates figures for your personal loan EMI and overall interest amount depending on your added values.
The personal loan EMI formula is –
Personal loan EMI = [p x r x(1+r) n]/[(1+r) n-1]
p = loan amount or principal
r = personal loan interest rate
n= repayment tenure
How can you use the online personal loan EMI calculator?
Using a calculator is simple and computations can be performed in just seconds. All you require doing is adding the below-listed values –
- Required principal
- Offered personal loan interest rates
- Repayment tenure
You can input the above three figures in the blank fields on an online personal loan EMI calculator. For instance, suppose you input Rs 1.50 lakh for principal, 4 years for repayment tenure and 12 per cent per annum for the rate of interest, you will get three results namely – loan EMI, overall interest payable and overall payment (principal + interest). The figures for all three loan constituents are –
- Loan EMI = Rs 3,950
- Overall interest payable = Rs 39, 604
- Overall payment (principal + interest) = Rs 1,89,604
From the above example, an online personal loan EMI calculator offers prudent insights, which you can use effectively to plan out your repayments. Additionally, once you are aware of the rate of interest you are eligible for, you simply can make tweaks to your repayment tenure and principal constituent to adjust as per your repayment potential.
Calculating a personal loan EMI in advance endows you with a better perspective on your financial standings, giving you sufficient room to plan out your investments and savings for every month. Also, arriving at an EMI constituent in advance makes it possible for you to zero in on an EMI and repayment tenure according to your affordability.