A personal loan can be easily availed at the time of a financial emergency. A number of people opt for a personal loan in order to finance their child’s education or wedding. Personal loans are also taken to meet medical needs or make home improvements.
While a personal loan is unsecured and can be availed much faster as compared to other loans, one should thoroughly consider his options before applying for this type of a loan. This is primarily because any type of default in the repayment of the loan, can put a person in greater debt and gravely affect his credit score as well as history.
Before applying for a personal loan, compare the rate of interests and benefits that are offered by various banks and calculate if you can meet the monthly instalments in time. One can do such calculations with the help of a personal loan EMI calculator.
A personal loan EMI calculator is a tool that one can use in order to find out the EMI that one needs to pay as per the rate of interest offered by the bank. To use a personal loan EMI calculator one needs to feed in basic information like the loan amount that is required, the tenure of the loan you are looking for and the rate of interest that the bank is offering.
This calculator can be used to make comparisons of the different rate of interests that various banks are offering and if you can afford repayment. The tool prepares a person by informing him about the exact amount of loan that he can borrow. Thus, it is an effective tool that helps one organise their personal loan repayment plan.
This is how one can take the help of a personal loan EMI calculator in various situations-
• In case of a car upgrade, one can use a personal loan EMI calculator to check if they should opt for a secured or unsecured loan.
• In case of home improvements, this calculator will help in planning just how much you can borrow. Thus, you will be able to decide on improvements that are affordable and those that are expensive.
• When planning a holiday, a personal loan EMI calculator will help one decide the amount that he can borrow. One can also check the tenure he should opt for in order to make repayments easy.
• One can also use a debt consolidation EMI calculator to check if opting for a personal loan at low interest rates, will benefit their payment of debts.