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5 Tips To Keep In Mind When Using The Emi Calculators

By Author: Chintu Yadav
Total Articles: 3

What is an EMI?

Whether you apply for a car loan, home loan or a personal loan, the overall borrowed amount together with the interest rate would bifurcate into monthly installments which can be repaid over a selected period of time. With the advent of technology and power of the internet, you can easily calculate your EMI for a particular loan just by sitting at home, office or anywhere else. An EMI calculator is accessible on the official websites of several banks and other financial agencies. It serves as a simplified tool for loan applicants to get an exact idea about their monthly installments, which further assists them in scheduling their finances accordingly.

Positives of an EMI calculator

With an online EMI calculator, loan amount calculations become easier for the borrowers. But how effective is this tool? To understand this fact let us focus on several interesting benefits of an EMI calculator that would work to present a precise answer for the question.

• It is important to know that, this tool offers accurate calculations. However, if the user is serving the wrong details, then chances of error are significant.

• With the availability of graphical charts, the online EMI calculator offers a clear picture about the evaluated monthly installments. Pictorial details are understood quickly, making this tool highly efficient.

• An online EMI calculator is capable of evaluating monthly installments for all sorts of loan amounts. Be it your car loan, home loan or even a personal loan, this tool acts as the perfect source for EMI calculations.

Tips to Remember before Using an EMI calculator

You can access an EMI calculator online at any of the websites offered by financial firms and banks. A precise knowledge of the interest rate as well as principal amount needs to be attained before calculating the monthly installments for your loan. But above all, you must know how an EMI calculator works!

Let us take a look at the five basic tips to see how this EMI tool functions:

1. Right Information: In order to get the correct result, you need to feed in the correct data. It means that one has to be honest while filling in the form. Always make sure you mention the exact loan amount, loan tenure along with the other details. This process would offer you a good estimate of the EMI which has to be paid each month. Suppose you are filling in the wrong information then accordingly the suggested result will be incorrect. This can later lead to confusion and financial problems.

2. Loan-Specific: It is important to note that, EMI calculators function for individual loans. Hence, use the calculator yourself before actually applying for the loan. In simple terms, you should not depend on the results your friend got, even though the loan was of similar nature or amount. This would help you acquire the exact information you need.

3. Different Banks/NBFCs Offering Different Rates: As a borrower, always try to keep in mind interest rates and other fees do differ from one financial institution to another. Therefore, the results popped on the EMI calculator are bound to vary. Further, the loan providers will not always offer the same benefits and rates. So, do not expect the calculator to provide you a uniform result for different values of personal loans.

4. Calculator v/s Simulator: It is necessary to stay careful while using an online EMI calculator. There are some websites which do not offer a calculator; whereas some offer an EMI simulator which only provides an approximate idea of the overall EMI structure. Make sure you take the help of an EMI calculator as it is more precise and accurate.

5. Cross-Check Outcomes: One must take the help of two EMI calculators. This way, the borrower can cross-check the results without any hassle. The different calculators available online offer accurate results, however, there is no harm in getting a surety with the outcome.

Final Say

EMI calculators act as a suitable source to chalk out a financial plan after taking into consideration your EMI and all other expenses. In this modern day setup, some of the EMI calculator apps can be easily installed on your smart phones for quick access. The above stated tips regarding the correct usage of an EMI tool are very beneficial. One should implement them carefully for sorting out their monthly repayment structure in a simpler manner without any glitches.

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