The ease of accessing loans coupled with increased disposable income of the masses continue to be among the top drivers of personal loan’s popularity. By August 2020, the total personal loans disbursed by financial institutions amounted to Rs.5,07,684 crore.
- A recent report revealed that a small ticket personal loan, i.e., a credit less than Rs.50000, drove the total personal credit volume by around 162% year-on-year basis by March 2020.
- By March 2020, the share of small-ticket personal loans grew 5X within 2 years.
Though accessing loans has become easier now, most individuals still struggle to repay the borrowed sum. For instance, as of March, the delinquency rate concerning personal loans increased to 5.55% for 31-180 Days Past Due, and for 91-180 Days Past Due, it was 2.59%. However, with the help of an online personal loan EMI calculator, individuals can plan their finances and minimise the risk of default to a great extent.
Perks of calculating personal loan EMIs
Individuals can access the personal loan EMI calculator online by visiting a reputed financial institution’s official website.
To use this financial tool, individuals need to enter details like –
- Loan amount.
- Interest rate.
Once all the data are entered, the result will appear on the screen instantly. By calculating personal loan EMIs in advance, users can benefit in these ways –
▪ Ascertain the cost of borrowing
With the help of this financial tool, individuals can determine the overall cost of availing of a loan. The calculator offers a breakup of the monthly loan instalment, total loan burden (i.e., the principal and interest amount) and total interest payable.
▪ Improves understanding of repayment schedule
Besides calculating monthly instalment, an efficient loan EMI calculator also offers users a detailed repayment schedule. This comes in handy to plan personal loan repayment and manage finances as per the user’s capacity.
▪ Allows to select a suitable repayment tenor
An EMI calculator also helps to find the right personal loan tenor that works for borrowers. It further allows users to understand how their chosen tenor can influence loan interest and repayment schedule. Generally, a longer loan tenor attracts a higher interest rate but will enable borrowers to pay a manageable EMI amount.
However, individuals with a high CIBIL score and spotless credit profile may be successful in securing lower interest rates or better terms of service from the lender.
Furthermore, financial institutions like Bajaj Finserv provide pre-approved offers to customers. Such offers are available on financial products like personal loans, business loans and credit cards. Check your pre-approved offer online with your name and contact number.
▪ Helps compare different loan options
Personal loan EMI calculator provides an outcome within seconds and facilitates multiple adjustments. This allows users to compare different combinations of tenor and principal amount and helps choose the most suited one.
For instance, if an individual decides to apply for a personal loan of Rs.1 lakh @12% for 24 months, he/she would have to pay a monthly instalment of Rs.4,707 and the total interest payable will be around Rs.12,979. On the other hand, if he/she decides to avail the same loan amount @12% for 48 months, he/she would have to pay Rs.2,633 as EMI and a total interest of Rs.26,412.
Hence, it can be said that when individuals use a personal loan EMI calculator, they not only gain an idea about the estimated monthly expense but can also plan a feasible budget plan. This helps them to repay their monthly loan amount without straining their finances. Besides financial planning, the features of loan EMI calculators also benefit their users significantly.
Benefits of personal loan EMI calculator
Besides helping users to manage their personal loan EMI repayment, a personal loan calculator comes with these benefits –
- Guarantee a sound FICO score
In the event that you have determined the EMI prior to taking up an individual advance, you would be totally set up to deal with your accounts for reimbursing the advance in the given time. You will not be passing up EMIs, and this would keep away from a helpless FICO assessment for you.
- Saves time and give exact outcomes
Every one of the perplexing computations are acted in seconds with the individual advance EMI mini-computer and this saves a ton of time. There are odds of blunders when the computations are done physically, however with the EMI mini-computer, there are no odds of mistakes, and you would get pretty exact outcomes.
- Simple to utilize and get to
The Personal advance EMI mini-computer is accessible on the web, and it is really simple to utilize. You should simply enter the chief measure of the advance, financing cost, and the residency of the advance to get the worth of regularly scheduled payments that you would need to pay. This makes it extremely simple for the clients to ascertain the regularly scheduled payment from any spot and whenever.
- User-friendly interface
The user-friendly interface is simple to use and allows one to carry out calculations without any confusion.
- Quick results
With this financial tool, users can avail outcome instantly. This saves a substantial amount of time and energy and comes in handy to compare different loan options and repayment schedule within a short span.
- Accurate calculation
EMI calculators have an inbuilt formula that can resolve complex calculations within seconds. It eliminates the need for manual calculations and, in turn, helps avoid common calculation errors.
Besides personal loan EMI calculators, other online financial tools can benefit intending borrowers in more than one way. For instance, a personal loan eligibility calculator helps users ascertain their loan eligibility and avoid getting their loan plea rejected.
As a result, they can protect their credit report from a hard inquiry and prevent the erosion of their existing CIBIL score for personal loans.
All one needs to do is enter details like their city, date of birth, monthly income and expense in the designated field to determine their eligibility. It helps users know how much money they are likely to get sanctioned and may provide them with the necessary push to improve personal loan eligibility.
It is recommended to use financial tools like a personal loan EMI calculator before applying for any loan to streamline financial planning. It is one of the best ways to select a suitable repayment structure that does not strain your monthly income.