A Personal Loan is a multi-purpose Loan you can apply for to meet any of your immediate economic needs. You may use the funds from this Loan to fund your dream wedding, home renovation, your kid’s higher education, expand your business, tackle a medical emergency, or buy a gadget. However, when you apply for a Personal Loan, you need to repay it using equated monthly instalments.
Let us understand Personal Loan EMIs, how to calculate them, and tips to reduce your EMI amount.
Overview of Personal Loan EMIs
The Personal Loan EMI is the sum you need to repay the bank every month for a specific tenure. The EMI is used to repay the principal and Personal Loan interest during the tenure until it is repaid fully.
How to calculate Personal Loan EMIs?
Before you apply for a Personal Loan, you can compute the EMI amount and plan your finances. For this, you can easily use a Personal Loan EMI calculator. It is an easy-to-use online tool that offers instant and accurate results. By determining the EMI beforehand using this calculator, set aside the required money without disrupting your regular budget. To compute Personal Loan EMIs using this calculator, follow these basic steps:
- Enter the sum you want to borrow as a Personal Loan. This is usually the amount that your chosen bank lends you.
- Enter the Loan term. This is the time you need to repay the Loan.
- You also need to enter the annual interest rate your bank will offer. When calculating, this online tool usually converts it into the monthly interest rate.
Once you enter the necessary details, the Personal Loan EMI calculator uses the EMI formula to calculate and display the EMI. It also offers the due sum and a detailed breakdown of the total interest you need to pay. Using this calculator provides multiple benefits:
- It gives an idea of the monthly instalment you need to pay your bank each month.
- By experimenting with various parameters on the calculator, you can determine the EMI you can comfortably repay.
- The Personal Loan EMI calculator is also easily accessible.
Tips to lower Personal Loan EMIs
If you want to reduce the Loan EMIs, you can increase your Loan tenure. This usually results in smaller EMIs. You also lower the Loan amount by decreasing the EMIs. Besides these, choosing the bank that offers the lowest interest rate also decreases your EMI.
Conclusion
Today, you can conveniently apply for a Personal Loan to tackle unexpected expenses. However, it is crucial to understand its financial implications. This is when an online calculator helps and lets you determine Personal Loan EMI and plan your finances.
