Use a Personal Loan EMI calculator before applying for a Personal Loan:
Personal loan is easy to avail and the loan amount can be used to meet various financial requirements. If you have an asset then you can easily avail a secured loan at a lower rate of interest. People take a personal loan mainly because you need to offer a security or a guarantor and to top it, you can use the amount for whatever you want.
The lenders most often charge a higher rate of interest to cover the risk. You must always look around for better deals and also be aware if the interest is charged on a fixed rate basis or on a diminishing value basis. The interest rate can be bargained with if you have been a long term customer with the bank. The interest rate can be reduced if you have an exceptional credit score. You must be aware of the penalties and fees that the lender is charging you.
It is always advisable to use a Personal Loan EMI Calculator before applying for a personal loan. Online EMI calculators are extremely easy to use. You will have to fill in the following details:
- Principal loan amount
- Loan tenure
- Rate of interest
Once you have entered the required information, you will get the EMI payment result. You will also get a pie chart that depicts the total payment break up. You will have access to the amortization table as well, this table will give you the loan repayment information for the whole tenure. In the initial months, a higher rate of the EMI amount is servicing the interest payment.
Most of the online EMI calculators will provide you with the following information that will help you plan your finances in a better way:
- You will know how much money is going towards the repayment of the loan.
- You will also be aware of how much of the EMI amount contributes to the interest payment.
- When you have a clear idea of how much amount is going towards the loan payment each month, you can plan your finances in a better way.
- Amortization table of the amount that you will be paying throughout the loan tenure.
- You can use this EMI calculator to compare the rates offered by various banks and check how much will you be paying each month towards the loan.
- When you have the accurate EMI amount, you will be in a better position to judge if you will have enough money you will be left with each month after servicing the loan. Based on this information you can choose the provider that is less expensive.
Before taking a personal loan, make sure that you have tried the various other methods of acquiring the finance. Personal loan attracts a higher rate of interest and may turn out to be expensive. So, ask around with your family and friends. See if you are able to save that amount instead of taking the loan. Even if you are taking the loan ensure that you have another source of income to rely on in if you can’t manage with the amount that is left over after servicing your loan.