Is the inflation rate taxing your current savings? Are you planning to apply for a personal loan? A personal loan is a simple way to raise money without security or mortgages. Whether you face a financial crunch in your personal life or need funds to expand your business, personal loans are there to satiate each financial issue.
A personal loan is easy to apply and quickly dispersed after minute evaluations. However, the borrower must consider important factors like tenure, interest rate, and repayment capacity before applying for a loan from any institution. Manual calculation of interest and monthly instalments can be tedious and full of error. Hence, never forget to use a personal loan calculator before applying for a loan.
What is a Personal Loan Calculator?
When you apply for a loan, you are liable to pay a certain sum every month in interest. Lenders charge different rates of interest based on loan tenure. A personal loan calculator is an online tool to calculate interest and equate monthly debt payment obligations.
Using a personal loan calculator is used before applying for a loan as it not only saves you from future crises and benefits you in countless ways. The tool allows you to calculate EMI even before the loan is approved, thus helping you analyse your upcoming lifestyle expenses.
Benefits of Using a Personal Loan Calculator
- Saves From Over Expenditure
Today, both financial and non-financial money lenders own website that allows you to evaluate various types of loan opportunities. They also provide a personal loan EMI calculator to calculate monthly debt obligations before filing a loan application.
When you calculate EMI, you know the definite amount payable every month. This helps you decide monthly expenditures and saves you from overspending throughout the loan tenure.
- Saves Time
We all know time is money, so why waste it on calculations? Personal loan calculators are tools that perform complex calculations within a fraction of a second.
Personal loans are meant to fulfil emergency requirements. Hence every second counts. Loan calculators are easily accessible and accurate. You need to grab a smartphone and visit any financial institution’s website. You don’t need high-speed internet or specific knowledge to calculate loan interest.
- Better Comparison
Financial institutions and money lenders provide detailed online information on loans and interest rates. Borrowers can now compile a list of repayment terms, interest slabs, loan amount, and tenure before applying for a loan. Further, they can use loan calculators to check EMI amounts and decide on lenders providing the best proposal.
- Decide Your Tenure
Personal loans are flexible. The interest rate is directly proportional to the term period. In simpler terms, the longer your term period, the more you are burdened with interest repayment.
Stretching your loan tenure will save you from debt stress, but you will pay more interest by the time you have cleared your dues. Loan calculators assist in determining the repayment period and save you from overpaying interest.
Personal loan calculators provide ample benefits. If you plan to borrow money, do not hesitate to calculate the loan EMI beforehand.