Get Help with EMI calculator for Personal Loan

Loans have become a fast selling product for banks and financial institutions. It is selling like hot cakes and you should look at the sales figures go high for loan products as compared to the previous year. Each bank has the same types of loans available with them. These loan products lure customers to get an advance cash so that the needs and requirements can be fulfilled. However, for such a loan amount, the customers need to pay an interest for the tenure they choose to repay the loan. This is the earnings of the bank and they keep on pushing for more people to take loans. Let us look at some of the details in this loan game. This loan is provided by two main sources i.e. banks and financial institutions The products are very simple to understand, and you may take a loan for all your requirements with ease.

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Types of Loans

There are three major categories of loans which are prevalent in the market. These loans are car loans, home loans and personal loans. The first two are loans for a specific purpose so that consumers can buy automobiles and homes for their end consumption. But the last one in the category is a widely used loan and it can be used for any purpose. This is the reason the interest rate for such loans is higher. The need of the customer is gaged while providing the loan and this is how the interest rate is decided by the banks and financial institutions. Personal loans vary in interest rate from 14-16% on regular basis.

EMI

An EMI is a component which is used to make the banks and financial institutions get their money in a slow and steady method. This plan is designed by them itself so that the consumer does not get the burden of paying a huge amount to the banks. An EMI is an abbreviation of Equated Monthly Installments. This means that you as a customer would have to pay the mentioned EMI amount to the bank on regular monthly basis. It is the agreement between the borrower and lender to pay the sum in a fixed tenure so that the loan can be closed as agreed. You can use a personal loan EMI calculator to know how much you would owe to the bank if you avail such a loan.

The EMI amount does not change every month but the proportion in which it is charged gets changed depending on the backend discussions held. But the real way of this work is to get the interest amount repaid first as compared to the principle amount. This way the bank can safeguard its amount before the consumer plans to pre-close it. This pre-closure is usually post one year if the tenure is for more than a year. But if the tenure is for a year then the pre-closure may be post 6 months. This EMI is an important aspect in the loan procedure for a customer. It helps them to know how much money is required to pay on monthly basis so that the loan can get over as soon as possible.

But as a consumer you should also understand the basic math behind it. This would help you to know how much extra you are paying over and above your principle amount. This is when you would start doing the right math on saving some amount from changing interest rates and adding a few benefits on gaining momentum to plan your financial future. A pre-closure attracts an interest rate known as pre-closure fees. This is on the final outstanding principle amount so that the bank can lure on the benefit of giving you the loan. Therefore, it is important for you to know what is best for you when taking a loan.

Personal Loan Benefits and Uses

A personal loan is usually asked for many different reasons. This can be for a renovation at home or for marriage purposes or to clear all your pending dues from the expenses made in the past. All this would not attract the bank to give you a loan, but for a personal loan they can give you an option. Here you take the amount you desire and make use of it to the core so that all your requirements are met and that too at a reasonable rate. The benefit of a personal loan is to get an advance on your requirements and that too at a charge which is negligible and can be paid in EMIs. This loan can be availed by any person who has the capacity to pay the EMI and can be availed multiple times in a year.

How does an EMI calculator help?

An EMI calculator helps you in many ways so that you can be financially sound in managing your finances in advance. We always plan for our finances in advance so that we do not pay any extra amount to the bank or any other vendor. This EMI calculator is helpful so that you can know where your money is being used. It would have three parameters to be input to get the result. These parameters are Loan amount, rate of interest and the tenure you need the loan for. This calculator is available online on various banks and financial institutional websites to make use of it in detail. The website has charts and graphs as well which would show how much EMI you would pay and the breakup of the interest and principle amount in charts form so that you can understand it visually.

The website would also show the EMI amount you pay on monthly basis along with the interest amount you pay for the entire tenure and the total cost which includes your principle and interest amount for the tenure. This way you know the extra expense you do over and above your loan amount and can drill it down on a year, month and day level as well. Such calculators are a boon to the users so that they can plan for the loan amount and tweak it even before they apply for a loan. The best part of such EMI calculators is that you would get the same EMI unless you change any parameter inputs. This means that the personal loan EMI calculator is trust worthy and can be a base for your financial planning.

The world has shifted from a manual workforce to a digital dashboard where everything is available at the tip of fingers. All you need to do is press the right buttons and the output is in front of you. These details are so accurate that you can vouch for it anytime and plan for your future finances. Of course, we all keep a buffer for any plus or minus in this future prediction and that is the cushion you have for the risk you take.

Eligibility

The eligibility for a personal loan is very simple. You need to be earning well so that the EMI can be paid for all the loans you have taken. If this is possible, then you are eligible for the loan. Also, the paperwork is minimum, and you need not run from one desk to another to get the papers arranged.

Credit Record

Your credit history is an important part in taking a loan. This should always be above average and this is possible when you repay your dues on time. A good example for this could be a small thing like a bill pending for your mobile phone as well. The credit records are maintained by an organization called as CIBIL When you know about all such things, it is easy for you to manage your loans and benefit from it as well. So, be informative always to make use of each feature in your personal loan.

How does an EMI calculator help?

An EMI calculator helps you in many ways so that you can be financially sound in managing your finances in advance. We always plan for our finances in advance so that we do not pay any extra amount to the bank or any other vendor. This EMI calculator is helpful so that you can know where your money is being used. It would have three parameters to be input to get the result. These parameters are Loan amount, rate of interest and the tenure you need the loan for. This calculator is available online on various banks and financial institutional websites to make use of it in detail. The website has charts and graphs as well which would show how much EMI you would pay and the breakup of the interest and principle amount in charts form so that you can understand it visually.

The website would also show the EMI amount you pay on monthly basis along with the interest amount you pay for the entire tenure and the total cost which includes your principle and interest amount for the tenure. This way you know the extra expense you do over and above your loan amount and can drill it down on a year, month and day level as well. Such calculators are a boon to the users so that they can plan for the loan amount and tweak it even before they apply for a loan. The best part of such EMI calculators is that you would get the same EMI unless you change any parameter inputs. This means that the personal loan EMI calculator is trust worthy and can be a base for your financial planning.

The world has shifted from a manual workforce to a digital dashboard where everything is available at the tip of fingers. All you need to do is press the right buttons and the output is in front of you. These details are so accurate that you can vouch for it anytime and plan for your future finances. Of course, we all keep a buffer for any plus or minus in this future prediction and that is the cushion you have for the risk you take.

Frequently Asked Questions

Q.What is a Personal Loan?

A. A personal loan is a no collateral loan which can be availed at any time by a user and be used for any purpose. However, it is an unsecured loan and is expensive when compared to a home loan or a car loan. This is the reason users opt for it only when there is a dire need. You do not require a guarantor for such a loan and the paper work is also very simple to apply.

Q.How can I calculate personal loan EMI?

A. Personal loan EMI can be calculated using the EMI calculators available online. It is an easy way to know how much you would owe to the bank even before you apply for the loan. You can use the calculators which have pre-defined inputs and upon it you would get to know how much EMI is expected each month for the loan you take.

Q. Where can I use the Personal Loan?

A.3. Personal loan can be used for anything the user wishes for. You can go buy gold from it or go on a family vacation abroad. The bank or the financial institution would not monitor the use of such funds. It is only concerned about its EMI being paid on time. You can take it for medical expenses if your insurance is not being able to help you or buy some electronics which are otherwise expensive to buy. So, it is up to the user to spend the personal loan as per their wish.

Q. What is the eligibility criteria of a Personal Loan?

A. This can vary from bank to bank but the general ask is the age, your income, your ability to repay the loan, the occupation and the residence proof. Once all these are in place, you are eligible to apply for a personal loan.

Q. How different is a home loan EMI calculator from a personal loan calculator?

A. A home loan EMI calculator is no different in looks from a personal loan emi calculator. However, it has a few backend parameters which show the change. In a home loan EMI you can calculate the interest rate in two types i.e. fixed or floating. This way you can look at a reduced or beneficial payment scheme. But for a personal loan, the interest rate is fixed when you apply for it and continues to be the same until the tenure gets over.

Q. What is the tenure I can take a personal loan for?

A.A personal loan can be availed for a maximum of 60 months which is 5 years. This would be on the higher side as most of the loans are repaid in a span of 2-3 years. Anything more than 3 years is a high value loan.

Q. What is the time taken to process the personal loan?

A. The personal loan takes about 7 working days on the maximum side as you would submit the papers and it would be checked by the backend team to approve or reject such a loan request.

Q. Is it possible to apply jointly for a personal loan?

A. You can apply for a personal loan jointly and repay it as agreed. This joint loan can be with spouse or parents. It is useful for you to apply for a joint loan so that you can apply for a high amount of loan by showing the separate incomes and making an impact.

Q. Is it possible for me to pre-pay my personal loan?

A.You can make a prepayment on your personal loan so that you pay less interest for the tenure. However, it is dependent on the bank to decide the fate and accordingly allow the user to pre-pay the loan. This can be checked while applying for a loan so that you are clear on it.

Q. How different is a home loan EMI calculator from a personal loan calculator?

A. A home loan EMI calculator is no different in looks from a personal loan emi calculator. However, it has a few backend parameters which show the change. In a home loan EMI you can calculate the interest rate in two types i.e. fixed or floating. This way you can look at a reduced or beneficial payment scheme. But for a personal loan, the interest rate is fixed when you apply for it and continues to be the same until the tenure gets over.

All such questions and insights upon the personal loan EMI calculator shall be helpful for you to apply for it and gain all the benefits aligned to it. You can deep dive into it so that you know what is about to come your way and how to tackle it financially.