At some point in one’s life, you will face a financial crunch or a requirement for a larger financial amount that goes beyond your income. At this point in your life, you can either opt to borrow from your friends or family, or you can either opt for a loan from a financial lender. With the latter option, not only will you get plenty of options to consider, but you will also get plenty of benefits along with these options.
But while you may or may not get the required amount when borrowing from your friends and family, you can be well assured that you will have a higher chance of getting the required funds through a loan from a financial lender. But before you can take this loan from a lender, it is crucial that you first take the necessary steps to plan your loan. Tools such as the EMI calculator will help you plan your loan, as well as take the necessary step to repay the borrowed funds. Here is how this loan will help you:
Know how much of interest rate one is eligible for: Different loans have different interest rates. Additionally, each applicant will have a different financial profile, meaning you, as an applicant will be eligible for a different interest rate which may be above or below of what is offered for that loan. No matter the loan type or amount you borrow, opting for the right interest rate is crucial as it determines how much you are eligible to pay back to the lender, along with the principal amount. You would not want to be in a position where you end up paying more for you an interest rate, as compared to the principal amount, would you? This is where the EMI calculator will assist you, as it will it help you determine how much of an interest rate you are eligible for and how much you can afford. Since it also tied up with the tenure of the loan, you will also know how long you will be paying for the loan and the added interest rate.
Know how much of a tenure one can afford: As mentioned previously, the interest rate is tied up with the tenure. At the same time, each loan type will have different repayment tenures. For example, the home loan has a tenure of 10 to 30 years, which is a considerably long time, especially with a high-interest rate. But can you afford such a long tenure, especially if you will be taking on additional debts in the near future? Therefore, it is crucial that you are aware of your loan tenure so that you not only know how long you will be paying the tenure but also how much you can afford. Using any of the online EMI calculators, you can calculate the ideal amount that will suit your requirements.
Apart from these benefits, there are plenty more which you can consider. However, you must remember, that your lender may or may not provide you with the loan rates you have calculated through any of the online EMI calculators. But you can always use the information you get through the calculator to leverage for better loan rates.