Published on: 10 November 2020
Modified on: 10 April 2023
As financial services and products get more easily accessible, personal loans have come to be considerably popular among professionals looking to cover their large purchases, emergency expenses, debt consolidation, and other personal financial requirements. However, while personal loans do provide quick access to funds, you must appraise quite a few factors before availing of one – including the loan tenure, your repayment capacity, and interest rates. After all, taking out a personal loan is bound to influence your lifestyle and spending habits in some way.
Instead of making do with speculations and manual calculations that more often than not prove to be incorrect, a very convenient way for you to consider your suitability to take out a personal loan before applying for one is to use a personal loan EMI calculator.
First things first- EMI is an acronym for Equated Monthly Instalment. A Personal loan EMI consists of the repayment of the principal amount and the interest payment on the said personal loan. A personal loan EMI calculator, of course, is a tool that lets you evaluate your monthly repayable amount for your personal loan.
Calculating EMI for personal loan before applying for it is a smart way to begin the process. Determining how much EMI you would be paying during your loan tenure can in turn, help you better understand how a personal loan might affect your monthly expenses and lifestyle.
Calculating the EMI for your personal loan is incredibly simple with the personal loan EMI calculator offered by Fibe. Now let’s see how this EMI calculator works, shall we?
To calculate the EMI, you need to pay annually towards the principal payment and interest payment over the tenure of your personal loan you have to put the following information into the Fibe personal loan EMI calculator:
After you put in all the required information, the Fibe personal loan EMI calculator will use the following formula to provide you with the EMI amount:
The benefits of EMI calculator are numerous. Using an EMI calculator before applying for a personal loan can give you many advantages, like:
When you know your definite EMI amount, you are in a position to plan your finances throughout the tenure of your personal loan and modify your monthly expenses accordingly.
Your loan amount, tenure, and the monthly interest rate all play major roles in increasing/decreasing your EMI. Why? Well, since your payable EMI is directly proportionate to the principal amount you have borrowed, the higher your loan amount, the higher EMI you’d have to pay. Plus, a longer loan tenure would allow you to reduce your monthly instalments, as opposed to a shorter tenure that would increase your EMI. And, of course, a higher interest rate means you’d pay a high EMI as well.
An EMI calculator lets you experiment with different loan amounts and loan durations so you can figure out the suitable loan amount you’d be able to take out without causing any inconvenience to your finances and the period of time within which you can comfortably repay your loan.
If you develop an idea of your EMI amount before applying for a personal loan, you can prepare yourself to repay the borrowed amount in time. Thus you won’t be in a position to miss your EMIs, and you’d be able to avoid a poor credit score.
The personal loan EMI calculator performs complex calculations in mere moments and allows you to save valuable time that you’d otherwise have to spend manually doing some pretty strenuous calculations to determine your EMI. Plus, since there is no scope for human errors, an EMI calculator would always give you accurate results concerning your monthly instalments.
In conclusion, using an EMI calculator lets you assess your eligibility to avail of a personal loan and repayment capabilities and ensures your financial wellbeing. To find out how to get a personal loan from the comfort of your home, use a personal loan EMI calculator, or know more about personal loans in general, do visit the Fibe website!
Category : Personal Loan
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