What makes online calculator useful tool for loans?

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A personal loan is a handy source of financing when it comes to your life’s goals. You can use one to manage a planned or unplanned expense – travel, wedding or even a medical emergency – with relative ease. But it’s always a good idea to understand your loan before you avail it.

Instead of borrowing a personal loan without completing your due diligence, it is a good idea to use an online financial calculator. An online calculator is a simple tool that helps you find the right loan amount to borrow and plan your repayment with ease.

Within the gamut of online calculators available today, the online EMI calculator is one of the preferred tools to manage personal loans online. Since your EMI comprises the principal borrowed and the interest due divided over the tenor of your loan, it shows you how much you will end up paying month on month. This essentially gives you an idea of how your finances are likely to be affected once you avail the personal loan.

Here are the advantages of using a personal loan EMI calculator before you avail your loan:

The online EMI calculator makes tedious financial calculations easy and fast
By giving you your projected EMI amount, it can help you determine how affordable the repayment of the loan will be
It is available online, which means you can use it on the go and at your convenience
It offers absolute accuracy, so you can be assured of the exact amount you are likely to pay
You can adjust the search parameters (such as repayment tenor and principal) to arrive at an ideal EMI or principal amount

How to use an EMI calculator

Using an online EMI calculator is easy. All you need to do is enter the loan amount, tenure (in months) and interest rate or use the sliders to arrive at the right figures. Now, hit enter, and you will see the following:

The total interest payable by you
The total payment including the principal and interest
The EMI amount due every month

You can tweak the numbers as per your requirements to arrive at an EMI that you can easily repay. Alternatively, you can change the tenure to reduce your EMIs if you can’t compromise on your principal amount.

Some online personal loan EMI calculators, like the Bajaj Finserv EMI Calculator, also give you the entire repayment schedule for easier financial planning.  

However, it’s good to remember that an EMI calculator is only for indicative purposes. Your actual EMI will depend on the interest rate offered by your lender after considering factors such as your credit score, your financial history and your employment.

Lenders like Bajaj Finserv offer several other financial calculators apart from the EMI calculator to help you make the most informed financial decision before availing your loan. For instance, you can use a personal loan eligibility calculator to determine your eligibility for the personal loan.

You can calculate your foreclosure amount to determine how much you stand to save on interest if you were to foreclose the personal loan or repay it before the end of your tenor. A debt consolidation calculator, on the other hand, helps you determine the loan amount you will need to consolidate your debt.

Others like part prepayment calculators can help you see the positive impact of making a payment in excess of your EMIs.

As you can see, loan calculators, especially the EMI calculator, can be a handy tool when it comes to planning your loan’s repayment and choosing the ideal amount. Use one to get an accurate handle on your personal finances.