Reasons To Consider A Personal Loan Emi Calculator During Application

By Author: Shreya Eppili
Total Articles: 40
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Personal Loans have gained immense popularity today. They are easy to secure and get credited to your account almost instantly. Plus, there is no need for collateral. Even youngsters can utilise their perks. But before applying for a Personal Loan, you need to consider specific factors. The most significant one is the Equated Monthly Instalments. Calculating them becomes important if you want a smooth repayment experience.
But often, manual calculations lead to errors. Hence, most of us are recommended to use the Personal Loan EMI calculator. The reasons for doing so are:
Computes accurate values
Manual calculation could lead to inaccurate results. This further causes incorrect budgeting. Eventually, you may not proceed with the Loan application. But with the EMI calculator, you do not face this issue. If you add the right details, you get precise values.
Arrive at customised EMIs
Various factors affect your Personal Loan EMIs. The most significant ones include Loan amount, tenure, ...
... interest rates, etc. However, your EMI is directly proportional to the principal amount and interest rates. However, it is inversely proportional to your Loan tenure. So, a longer term means smaller EMIs. Such basic yet essential knowledge may be missed out. But when you use the calculator, you become aware of them.
As a result, you start experimenting with different amounts and tenures to get your desired EMI amount.
Improved credit scores
Although not an important benefit, improved credit rating is crucial. Once you know your EMIs, you can prepare better. This way, you can make better financial decisions to afford your EMIs. With time, orderly repayments boost your credit scores. This enables you to apply for more Loans and Credit Cards in the future.
Efficient
A Personal Loan EMI calculator provides you with results within seconds. Since there is no scope for calculation errors, you need not spend time cross-checking the values. As a result, you can make swift and well-informed decisions.
Hassle-free usage
When you apply for a Personal Loan online, you will automatically find the EMI and eligibility calculators online. Almost every other Loan provider offers them on their portal. But the best feature lies in their easy usage. You do not require extensive knowledge to use them. You only need to know the principal amount, tenure, interest rates, etc. You can then follow the guide that the bank shows on their website.
Make sure to only use the calculators on the bank websites as they are considered more authentic than the ones on third-party websites.