You need to consider several factors while applying for any kind of loan. While personal loans are easy to acquire if you satisfy all the criteria, you still need to consider an overview of your finances and your financial situation. Calculating the required loan amounts and repayments can be complex and time-consuming. However, banks provide personal loan calculators to ease your financial planning. In the article below, let’s find out how a personal loan calculator works and help you plan your finances.
What is a personal loan calculator?
A personal loan calculator helps estimate the total cost of your borrowing including the monthly instalments that you need to pay. Personal loan calculation involves complex calculations with numerous variables and computing it manually can be hectic and time-consuming.
However, with a personal loan EMI calculator, you can calculate your loan eligibility, the monthly EMI required to repay the loan, and the overall loan cost. Using a few inputs like the amount you need to borrow, interest rates offered and the tenure, you can estimate your total borrowing cost and plan your finances accordingly in advance.
How does a personal loan calculator work?
To offer enhanced financial services, banks and financial institutions offer several tools to plan your finances conveniently and avoid any mishaps. Personal loan calculators are easy to use and are available on various financial organisations’ portals and bank websites.
To use a personal loan calculator, you need to fill in a few entries such as the principal loan amount, interest rate of the loan, and the loan’s repayment tenure. After entering the details, you need to press the submit button. Based on the details entered, the calculator returns the total cost of the loan, the monthly instalments that you need to pay, and the total interest you are supposed to pay.
You can adjust the tenure and the principal loan amount depending on your capabilities to find the most suitable loan for meeting your financial requirements. To plan your finances efficiently, you can use the IDFC FIRST Bank personal loan EMI calculator and estimate your personal loan EMI in just three simple movements on the scale, with ease. You can also check the attractive interest rates on personal loans that are some of the bests in the industry.
How does a personal loan calculator help your financial planning?
Personal loan EMI calculators are an effective way to calculate your loan cost and plan your finances conveniently. The EMI calculator helps in several ways such as –
- Saves your time and effort to manually calculate your monthly EMIs and the overall loan cost.
- It helps you choose the best loan amount based on your financial requirements and repayment capabilities.
- You can plan your finances in a better and more effective way to avoid any financial mishaps.
- You can get an extensive overview of the personal loan to aid your research.
- The loan calculators also help you check your loan eligibility based on your repayment capabilities.
Applying for a personal loan requires extensive research to find the most affordable deals. However, using a personal loan calculator, you can conveniently make your research hassle-free and less time-consuming.