You may need urgent funds at some point in your life. But your friends and family may not be in a position to assist you. However, you still have an option of opting for a personal loan.
A personal loan, which is an unsecured loan will require no collateral or security unlike other types of secured loans. Furthermore, the end-use of the funds received through this loan can be used for several purposes. So if you need to finance a wedding, pay off any other loans or even sponsor a part of your holiday trip, the choice is yours.
Like other loans, the personal loan will be need to repaid back. In this case, you need to plan your finances beforehand. But how much do you need to keep? How much will you actually know how much will you be paying for the interest? This is where the personal loan EMI calculator will be useful. Given below are some of the commonly asked questions and answers pertaining to this financial tool.
What is a Personal Loan EMI?
Like any other loans, the personal loan comes with an EMI. EMI stands for equated monthly instalments. These monthly instalments are either fixed or floating, with a fixed tenure. Through this monthly instalments, you will be required to repay your loan. By using the personal loan calculator, you can easily calculate the EMI rates of the loan.
Why should you calculate the personal loan EMI before applying for the loan?
Before you take the personal loan, you need to assess whether you can afford the loan in the first place. At the same time, you need to ensure that you can afford the EMI, throughout the years required to repay the funds. Hence it is crucial that you calculate the approximate EMI using the personal loan EMI calculator. By using this tool before applying for the loan, you will know how much of a loan amount you can afford, settle for an interest rate that will suit and fix EMI rates that are affordable.
How to calculate the EMIs?
While you can calculate the amount manually, you can also use the personal loan calculator to calculate the amount for you. All that is required from you to input in the calculator includes:
• Loan amount: This is the first amount you will need to input. The loan amount is basically the value of the funds you will want to borrow.
• Interest rate: This is the rate which is calculated on the loan amount. Most lenders will already have a fixed base rate which can be increased to your preference.
• Tenure: This is the number of months you would require to repay back the loan amount and the interest rate.
As soon as you provide the required information, you can submit it for calculation. The result will be the calculated loan EMI amount.