Personal loans are a great resource for small expenses that need to be handled in a rush. Personal loans of small amounts such as a few thousand rupees are often available from banks at interest rates as low as 2-6% per annum and can be taken out against small fixed or recurring deposits.
More conventional personal loans of Rs.50, 000 and above are available at 10-12% per annum interest rates. Most people can be eligible to apply for a personal loan as long as they are salaried employees of government or other reputed establishments or can show proof of income.
When you decide a loan scheme, your EMI is determined by several factors such as your interest rate, your loan amount, etc. It is crucial to know your EMI options beforehand and choose a payment plan that is suitable to your needs. If you end up with a payment plan that takes too large of a chunk out of your monthly income, it might disconcert the point of taking out a loan. Which is why, before you take out a loan, you should use an EMI calculator for personal loans to figure out your possible monthly payment plan.
Purpose of an EMI calculator
When you’re planning on taking out any sort of loan, you should have a rough idea of how you are going to be paying it back and how long of a commitment you are willing to undertake in terms of a payment plan. A personal loan calculator will help you ascertain these specifics and let you plan ahead accordingly. It will let you calculate the EMI on different loan schemes that you are considering as well as different loan amounts that you might need to consider, giving you a well-rounded idea about the situation.
A personal loan EMI calculator can make your job much easier by taking into account various factors instead of letting yourself account for them. Often while taking out a loan, people do not take into consideration, factors such as the time before they have to start paying back the loan and the interest it accumulates. This can lead to people getting frustrated over a longer span of EMI payments.
Strategizing beforehand using an EMI calculator can eliminate such hassles and let you take out your personal loans without worry.