The personal loan segment in India has seen a significant rise in demand in recent times. According to the RBI, the total outstanding in this credit category increased by 12.1% to Rs.29.18 lakh crore in September 2021 from Rs.26 lakh crore in September 2020. One of the reasons behind this rise in demand is this financial product’s ability to meet an array of financial requirements.
Nonetheless, individuals planning to choose this credit instrument should calculate the EMIs in advance to plan their finances. In this regard, one can get the assistance of an online personal loan calculator to expedite this process.
Advantages of Using a Personal Loan Calculator
Here are some notable benefits of using an online device like this –
1. Precise and prompt results
Manual calculations can find monthly installments, but it leaves room for human error. Whereas, if one takes the help of such online devices, it can help streamline this process and reduce any possibility of a mistake.
Additionally, online devices like this one can reduce the planning time for availing of a small personal loan. Since results are available instantly, individuals can then chalk out their finances accordingly and apply for the credit.
2. Tailored results
Another notable benefit of taking the assistance of such an online device is its ability to provide customized results. Since one has the liberty to alter loan figures entered in these calculators, a borrower can easily find a loan offer that is best suited to their capabilities.
Moreover, there are no limits on how many times one can use such financial tools. Individuals can keep trying till they find a personal loan offer that meets their suitability.
3. Comparing different loan offers
Since an online EMI calculator like this enables borrowers to mix and match to find a desirable result, they can also use this tool to compare different loan offers. For example, individuals can enter the interest rate, principal, and tenor from different lenders to choose the right personal loan lender.
4. Access to the loan amortisation schedule
Access to the loan amortization schedule is another notable advantage of this financial tool. It helps prospective borrowers get an insight into the repayment structure of a loan. A loan amortization schedule presents a detailed break-up of the monthly installments. It tracks the progress of EMIs and how the interest and principal component changes throughout the tenor.
Therefore, potential borrowers can use this schedule to plan their prepayments and foreclosure.
5. Free to use
Also, online EMI calculators are free to use. Websites offering this service do not levy charges for accessing it.
Besides knowing the advantages of a personal loan calculator, borrowers should also learn how to use it.
How to Use a Personal Loan EMI calculator?
Here is a step-by-step guide on how to use an online calculator like this –
Step 1: Visit the website of an EMI calculator
Step 2: Enter loan details, such as principal amount, interest rate, and loan tenor
Step 3: This calculator will then display your monthly installment figure
Users have the liberty here to reset and re-enter different loan values to find the lowest personal loan rates.
Furthermore, using this calculator can aid individuals to make knowledgeable decisions. Simultaneously, they should be well aware of the features and benefits of personal loans before applying.
How to Apply for a Personal Loan?
Here is a step-by-step guide on how to apply for a personal credit –
Step 1: Visit the official website of a lender
Step 2: Find the personal loan application form and fill it up correctly with the required information
Step 3: After the initial approval, submit necessary documents
Step 4: You will receive final confirmation within 24-48 hours, and the amount will be transferred to your account
With the availability of an online application process, applying for credit has not been an issue anymore. However, reputed financiers like Bajaj Finserv extend pre-approved offers to streamline this process and save time. Applicable on business loans, personal loans, credit cards and several other financing options, applicants can check their pre-approved offers online by submitting essential contact information.
If you are planning to apply for this credit instrument, then knowing the EMI figure in advance can be an added advantage. Hence, using a personal loan calculator can help individuals make informed decisions. However, at the same time, individuals should also be wary of the crucial factors before signing a personal loan agreement.
To conclude, one can evaluate EMIs or apply for a suitable quote by using a personal loan 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.
Read Also: SBI Personal Loan For Salaried Individuals