Loans

How Does Personal Loan Emi Calculator Work?

A personal loan calculator is a tool which can be used to calculate monthly installments that you will pay when you take a personal loan. The calculator is extremely easy to use and will effectively calculate the EMI for your loan. It works on two basic formulas. One is used to estimate the monthly interest rate and the other is used to calculate the EMI amount. You will have to enter the loan amount, interest rate and the tenure in order to calculate the personal loan EMI.

Before you start using the calculator, you will be required to convert the annual rate of interest into monthly rate of interest. Your EMI will be a monthly outflow and you need to make a monthly EMI calculation. The calculator will use a formula to convert the annual rate into a monthly rate and you will be able to estimate an accurate EMI amount on the given loan amount and tenure.

Below are some benefits of using a personal loan EMI calculator:

  1. Accuracy: With an EMI calculator, you can get accurate information about the EMI you will be liable to pay against the loan. Without this tool, there is a possibility of making a mistake and taking a wrong decision. It is advisable to always use the calculator before you sign on the loan documents.
  1. Time saving: When you calculate the EMI using a pen and paper, it will take up a lot of time and you might not be able to get an accurate amount. With a personal loan calculator, you can easily estimate the amount of EMI in less than a few minutes.
  1. Make comparisons: Using an EMI calculator, you will be able to make quick and easy comparisons within no time. You can compare the interest rates and the EMI amount simultaneously and know the best offer. You will be able to make easy comparisons and choose the lender that is suitable for all your needs.
  1. Easily adjustable: The biggest benefit of using a personal loan EMI calculator is the fact that it can be used for as many times as you want to. You can fill the entries until you are satisfied. The calculator is easy to use, and you can re-adjust the settings until you get the result you are looking for.
  1. Make a wise decision: Taking a loan is a big decision and you cannot rush it. You need to research about different lenders, understand the terms and conditions offered by them and then make a decision. When you use a calculator, you do not need to ask the customer executives to provide you with an approximate EMI amount you will be liable to pay each month. Rather, you can get information about the tenure and interest rate and calculate the EMI yourself.

Using a personal loan calculator is easy and convenient. It is very important to calculate the EMI before you make a loan application with a lender in the market. It plays a big role in your borrowing decision.