When you experience an emergency or need extra money for a big-ticket item, you might consider personal loans as a quick financing alternative. They are straightforward to avail and the full process may be accomplished within 24-36 hours. Personal loans are unsecured loans, which means you don’t have to put up any assets as security for the money you borrow.
Personal loans have grown in popularity in recent years as a result of their simplicity of approval and flexibility of use. A personal loan can be used to cover higher education costs, support an exotic vacation, pay for unexpected medical bills, or even grow your business.
What are the factors that you need to consider before applying for a personal loan?
When you think about availing of a personal loan you should consider the following three factors:
- Interest rates
- Tenure of the loan
- Repayment capacity
Calculating the predicted EMI accurately is important since it will allow you to make an informed selection based on your repayment ability. Calculating a personal loan’s EMI by hand might be inconvenient and incorrect. It is usually a good idea to use a personal loan EMI calculator, which can be found online.
The best way to figure out whether a personal loan is right for you is to use an EMI calculator and come up with a set of EMIs that you can afford depending on the loan amount, period, and interest rate you select.
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What is a Personal Loan EMI Calculator?
When you take out a personal loan, the EMI, or equal monthly installments, you will pay a combination of principle and interest. A personal loan EMI calculator is an online tool that can be used to figure out how much you’ll have to pay each month throughout the life of the loan. This calculator will assist you in determining the most appropriate amount, interest rate, and term for your needs. You’ll be able to analyze the loan’s influence on your monthly cash flows and future lifestyle with precision. It will assist you in making an informed personal loan selection.
When you apply for a personal loan at LoanTap you will need the following documents –
- Copy of PAN card
- Address Proof (Aadhaar card, Driver’s Licence)
- Salary slips or income proof for the last three months
- Savings bank account statement for the last six months
- eNach Mandate
Remember that you may only apply for a personal loan if you are an Indian citizen above the age of 21 and have a monthly salary of more than Rs 30,000.
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What are the benefits of using a Personal Loan EMI Calculator?
Before you apply for a personal loan, we recommend that you use a personal loan calculator. Let’s look at the advantages of utilizing an EMI calculator for a personal loan.
- Helps Adjust the budget to accommodate the EMI in monthly cash flow. This ensures that you have made an
- Educated final selection after trying with many permutations and combinations.
- Ensures that your CIBIL score is in good shape.
- Convenience and simplicity are at the heart of the tool.
- It saves time and assures precision.
Accommodate the EMI in monthly cash flow by tweaking the budget
You’ll be able to include the right EMI into your monthly budget and alter your monthly spending accordingly once you’ve calculated the correct EMI. If you are conscious of your flaws from the beginning, it will not come as a surprise.
Ensures that you have taken an informed final decision after trying for different permutations and combinations
Loan amount, duration, and interest rate are the three elements that determine your EMI. When you use an EMI calculator, calculating the EMI for different loan amounts, tenures, and interest rates becomes much easier. The EMI has a direct relationship with the loan amount and interest rate, but it has an inverse relationship with the loan’s duration or period. The lower the EMI, the longer the tenure, and vice versa. You may experiment with different combinations using an EMI calculator to get the best EMI for your loan so that your lifestyle is not limited.
Ensures a healthy CIBIL score
A high CIBIL score is required to obtain a loan, but timely repayment is required to maintain the score. Any missed or defaulted EMI payments might result in a reduction in your CIBIL score, limiting your future loan options. So, before taking out a personal loan, it’s best to be cautious and utilize an EMI calculator.
Fueled with Convenience and ease
Using an EMI calculator for a personal loan is not difficult. It is a straightforward tool that may be found on the internet. All you have to do is input the loan’s principle, the loan’s length (in years or months), and the interest rate. The calculator will calculate the EMI you’ll have to pay. This is especially useful for first-time borrowers who are frightened by the loan process and believe it is too difficult for them.
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Saves time and ensures accuracy
Manually calculating loan payments is a difficult, time-consuming job that is prone to mistakes if not done correctly. The complicated calculations are done in seconds when using a Personal Loan EMI calculator. You may analyze various situations, such as monthly prepayments or foreclosure, and be aware of the associated costs and advantages. Before getting into a loan agreement with a lender, it is critical to arm yourself with the necessary information.
There are several advantages to utilizing an EMI calculator to calculate your loan payments and arrive at the best loan amount that matches your demands while having a minimal impact on your monthly budget. Before you apply for a personal loan, make sure you utilize an EMI calculator.