Financial emergencies can at occur any time. Whether medical expenses or home renovation requirements, it can significantly strain your budget or finances. In this regard, India’s lending sectors are offering varied financing options to prospective borrowers to meet personal and professional requirements. Therefore, if you are seeking a substantial loan amount to back your high-end purchases, you can consider unsecured credit options like personal loans. Since planning a proper repayment structure is crucial when opting for a credit facility, borrowers can consider certain online tools like the Online Interest Calculator.
What is an Interest Calculator?
An interest or EMI calculator comes as a handy financial instrument that allows borrowers to define how much interest they are liable to pay throughout the tenor. Besides, borrowers can also determine the monthly installments, amortization schedule, and other essential details with the help of this calculator and plan repayment accordingly.
The loan amount, interest rate, and tenor are crucial factors that can affect your EMIs, which is why one must input these determinants in the interest calculator. After entering these details, one can get a complete breakdown of the expenses associated with the credit.
Therefore, if you plan to acquire a personal loan, learning the basics of such calculators is essential to manage repayments efficiently.
How to Use this Online Calculator?
Here is the entire process borrowers must follow to plan their personal loan EMI repayment better –
- Look for the desired personal loan EMI calculator.
- Input the desired loan amount in the respective field.
- Check the applicable interest rate on such loans.
- Search for the available tenor options and carefully select the repayment tenor based on your financial capabilities.
- Click on the “calculate” option to view your financial liabilities within seconds.
Using this online tool beforehand allows applicants to select the right personal loan that works for them and make effective repayment strategies.
On the other hand, calculating EMIs manually can be a tedious task, and often inaccurate results can hamper repayment strategy. The mathematical formula used to calculate monthly instalments is –
EMI = P x R x (1+r)^ n / [(1+r)^n – 1]
Here, “P” refers to the principal amount, “r” denotes interest rates on personal loan, and “n” signifies repayment tenor.
Therefore, to receive accurate results within seconds, it is advisable to use such financial tools where you just need to enter these determinants to determine monthly installments.
Benefits of Online Interest Calculator
Due to the advantage of no-endOnline interest calculator use restriction, zero collateral, and the likes, personal loans have always been a popular credit facility among intending borrowers. Usually, young borrowers avail these loans to meet their emergency expenses, high-end purchases, planned expenditures, etc. However, since it enables borrowers to avail a sizeable loan amount without pledging any asset, it often leads them to fall into a debt trap.
Therefore, even if you plan to apply for personal loans, make sure you use this calculator and plan repayment better. Here is the list of benefits you can obtain with this financial instrument:
Helps in assessing amortization schedule
When repaying EMIs, a substantial portion of income is spent on clearing dues, while the remaining amount goes on paying interest. The principal and interest component percentages keep changing with each EMI payment and time. As a borrower, you need to know the overall breakdown of these components. Knowing these details beforehand will allow borrowers to make effective financial decisions.
Helps in selecting a suitable lender
Usually, personal loan terms differ across financial institutions. This calculator can help compare offers extended by lenders without consuming much time. With the assistance of this instrument, one can compare EMIs and settle for the one that suits their financial affordability.
Helps in determining the suitable tenor
These online tools can be used as many times as one wants. Besides, the values of the determinants can be changed multiple times. Therefore, prospective borrowers can choose an affordable EMI by changing the loan amount and tenor using an interest calculator.
Besides offering these exclusive products, leading financiers like Bajaj Finserv extend pre-approved offers on a wide range of secured and unsecured financial products. To reduce the hassle of extensive documentation and accelerate the loaning process, customers can check their pre-approved offers by mentioning their essential credentials.To know More Visit Loan Trivia.
Thus, an Online Interest Calculator or EMI calculator is the most efficient financial tool to structure one’s repayment efficiently. Thanks to its comprehensive and detailed breakdown of the factors that will allow borrowers to stay ahead of their debt.
To conclude, one can evaluate EMIs or apply for a suitable quote by using a Bajaj Finserv interest calculator in a few steps. Furthermore, with the help of this online tool, one can choose to part-pay or foreclose the loan before the tenor ends.