Do you need funds to pay a medical bill after surgery or treatment? Do you require instant cash to sponsor higher education? Or do you want to surprise your significant other with an iPhone? An instant Personal Loan can cover all these expenses and many others without end-use restrictions. However, amidst all the hype and promise, your ability to repay the loan mustn’t be overlooked.
Applying for loans has become much easier today, with new-age lending institutions like Clix Capital supporting 100% digital loan procedures to approve them online. Loan seekers can access all the information they need online according to the loan they want. Additionally, most NBFCs have streamlined their loan processing, making it easier for applicants to avail the required funds in time. However, before applying for a loan, one must evaluate specific terms to manage the finances well.
Although Personal Loans are collateral-free, they are still financial responsibilities. Failure to repay them can ruin a borrower’s credit score and credit history. An online EMI calculator eliminates any error margin, including the Personal Loan interest rate. The online calculator accurately calculates EMIs for different repayment terms, allowing borrowers to plan repayment according to their repayment capacity. Let’s learn more about this loan provision and read all its benefits.
Easy Comparison: Personal Loan interest rate, loan tenure, and principal amount directly impact the payable EMIs. In short, the EMI amount is inversely proportional to the repayment tenure. The longer the loan tenure, the smaller the EMIs. On the other hand, planning to repay the loan within a few months makes the EMIs bigger. Hence, an online loan EMI calculator helps gauge and compare the EMIs for different loan terms, assisting borrowers in deciding on repayment tenures at their convenience.
Time-Saving: One significant benefit of using an online EMI calculator is it gives instant results without requiring manual calculations. This also saves the time and effort required to physically visit a branch office and wait around to speak with a representative. Moreover, it eliminates any chance of manual errors in calculating the EMIs.
Simplified Financial Planning: Apart from calculating the EMIs, an online calculator also shows how much interest cost a borrower will pay by the loan term-end. It provides an amortisation table for the entire loan duration, giving the transparency required to sort the finances. Accordingly, borrowers can manage their monthly budget to accommodate the EMIs comfortably.
Accurate Results: Manually calculating the EMIs using pen and paper is prone to errors and time-consuming. An online EMI calculator produces accurate results in real-time. It uses the mathematical formula to calculate EMIs automatically and consistently deliver error-free results within seconds. Furthermore, users can use it any number of times without any charge. Simply put in the Personal Loan interest rate, loan amount, and repayment tenure of choice into the tool to calculate the EMIs. It allows borrowers to plan their repayments even before applying for a loan.
Adequate Loan Amount and Tenure: Users can adjust the loan parameters and values as often as they want when using an EMI calculator. For instance, if the EMIs are beyond the convenient budget, an applicant may opt for a lower loan amount, lengthen the repayment tenure, or do both to bring them within reach. However, remember, the longer the term, the larger the total interest paid. On the other hand, a shorter term will increase the EMI amount but limit the net payable interest. Therefore, adjust the principal and tenure values until you find a loan structure financially feasible within your repayment capacity.
Automated Amortisation Schedule: EMI calculator from a reliable lending institution goes further to show the complete amortisation schedule. It helps to see how much interest and the principal amount the borrower will pay each month. Understanding the monthly repayment schedule before getting a loan helps with better financial management and recognises the best time to prepay a loan. When individuals know how much they will pay in monthly EMIs, they get a clear idea of how to create a budget and save more to achieve their goals. Accordingly, they can set a budget around the EMIs and ascertain their monthly savings stay on track without suffering any blows.
Choose the Best Loan Plan: An EMI calculator delivers the results while considering the Personal Loan interest rate. Even a minor change of .5% can significantly impact EMI payments. A borrower can finalise the best loan plan by maintaining a constant loan term and amount and entering the different interest rates available. This can help a borrower calculate different scenarios and choose the most suitable loan plan as per their monthly salary and budget.
Visual Representation of the Loan Amount and Payable Interest: Some online EMI calculators display detailed information in a chart, allowing borrowers to see how much they will spend on principal versus interest in one glance. Moreover, it shows an exact split between the two variables, helping borrowers make better loan decisions according to their budget.
Healthy Credit Score: Borrowers can determine the exact EMI amount using a Personal Loan EMI calculator and budget for them without defaulting. It puts them in a better position to handle repayments on time and improve their credit score.
Accessibility: An EMI calculator is a free-to-use tool readily available online on the websites of leading NBFCs. Users can use it as many times as they want 24/7. Moreover, they do not need to provide any financial or personal information to get the desired results. They can modify the variables until they get a conveniently repayable EMI amount.
Pre-determining future EMIs makes repayment easier and eases all financial worries. A Personal Loan EMI calculator simplifies all loan-related calculations while eliminating the need to visit the branch office or manually calculate the EMIs on paper. It is readily available on websites or top NBFCs, like Clix Capital, and aspiring borrowers can use it any time of the day, free of cost.
