Whether you need money for a luxury holiday or your tuition fees, personal loans are a one-stop solution for all your personal needs. Thanks to technology, you can get such loans in just a few hours through a digital, paperless process. However, this doesn’t mean that you should apply for a loan sight unseen. Check your options for the best deals and easy repayment.
A personal loan calculator can help you choose the right loan amount and repayment plan. It helps you find out and plan monthly instalments. Read on to learn how a personal loan EMI calculator helps with loan repayment.
Importance of a Personal Loan EMI Calculator
With an EMI calculator for personal loans, you can ensure that the calculations are in your favour. It also helps determine your target repayment date before taking a loan. Figure out the monthly instalment in your current budget plans. This is an important decision to make. So, before applying for a loan, know how much you can borrow and repay comfortably.
With the easy-to-use personal loan calculator, you can choose the term. Decide on a long-term or short-term repayment period. Depending on your financial situation, change the main sum. To find a manageable EMI amount, adjust the value of the loan amount in the calculator.
How to Use a Personal Loan EMI Calculator
The personal loan EMI calculator can calculate the EMI amount based on the information you enter. Enter the following information first:
- Amount of Personal Loan– Your loan amount is the total sum you borrowed.
- Rate of Interest– In loans with fixed interest rates, the interest rate doesn’t change and stays the same for the duration of the loan. In other words, the EMIs will all be the same until the loan is repaid. However, the floating interest rate changes. So, the EMIs also fluctuate sometimes.
- The tenure of a personal loan– It is the period the borrower has set for the repayment of the loan. Almost all lenders offer flexible credit periods. The loan term, usually between 12 and 60 months, can therefore be chosen by the borrower.
The Personal Loan EMI Calculator uses formulas to calculate the interest and EMI for personal loans.
The formula for personal loan EMI calculation
The following formula is used to determine your personal loan’s EMI:
EMI = (P × R × (1+r) ^n)/((1+r) ^n-1)
R = Interest Rate
p = Principal amount
N = Loan term/tenure
Let’s Use An Example To Help Us Understand This –
The borrowed sum is Rs. 6,00,000. (P)
The annual interest rate imposed is 10.5%.
The term is 48 months (n)
The EMI that must be paid based on the formula above is then:
(6,00,000 x 0.00875 x (1+0.00875)^48)/ [(1+0.00875)^48-1] = Rs. 15,362
Why Should You Use An Online EMI Calculator?
It is crucial to understand how much money you need to pay monthly. Find out before applying for a loan whether it is a secured or unsecured advance. An EMI calculator helps a lot in such cases.
- You can use a credit EMI calculator to save time. You do not have to do complicated calculations by hand, which can take a lot of time.
- This way, you can calculate your EMI amount accurately and budget your money accordingly. You have the best chance of getting approved for a loan if you keep your debt-to-income ratio below 50%.
- There are very specific details for each type of loan. For example, a personal loan has a different EMI breakdown than a home loan.
- This way, any potential for error is eliminated, and you always get an accurate estimate.
What is the Personal Loan Eligibility Calculator, and how does it work?
Using the personal loan eligibility calculator, you can find out how much you can borrow based on your credit score. You can enter the required information in the online calculator to get a quick overview of the maximum personal loan amount you can apply for. The factors that determine your creditworthiness are interest rate, age, monthly income, unpaid instalments, and loan term.
Use of the Personal Loan Eligibility Calculator
An online instant estimate generator for your eligible personal loan that is simple to use is the personal loan eligibility calculator.
- Select your location.
- Specify your age. When you apply for a loan, you must be at least 21 years old, and you can only be between 62 and 70 years old when the loan matures, depending on the lender.
- Select your monthly net income. (or, if you’re self-employed, your annual profit after tax). Please remember that the money should be made after all tax deductions.
- Monthly EMI figures should be selected. The total of all instalments on your credit card, including those for which you are currently making payments, should equal this amount.
On the right, you will see the total personal loan amount for which you qualify. The term and the interest rate are flexible and depend on you. A minimum credit score of 750 on a scale of 300 to 900 is needed to qualify for a loan. And that’s it! The personal loan eligibility calculator is a quick, simple, and easy-to-use tool.
Use the Piramal Finance EMI calculator for personal loans. It is completely free of charge. Anyone can use it whenever they want and as often as they want. The online loan calculator is consistently 100% accurate. It is fast and gives an accurate estimate instantly.
Piramal Finance offers other calculators besides the loan EMI calculator. Visit Piramal Finance’s website or click here to learn more about their services.