Here’s Why You Must Use a Personal Loan Calculator Before Applying for A Personal Loan
Various lending institutions have adopted modern technology to add transparency to their daily operations. They are doing so to comply with the Reserve Bank of India guidelines and to make loan applicants financially aware. Previously, inadequate transparency concerning loans was one of the major reasons for many to turn down the idea of availing loans. However, now, the introduction of consumer-friendly tools, financial apps, and technology has encouraged many to go ahead with the idea of applying for loans. Transparency is prevalent in all loan types including personal loan, one of the most popular and easily accessible credit options in times of exigencies.
Transparency in loan allows you to be aware of your financial obligations and rights before making an application. For instance, it is your basic right to be aware of the documents required, eligibility and charges of the personal loan before placing an application for it. Previously, you had to approach the lender’s office to know about this information. However, technological advancement has made it simpler to access the required information anytime. With an online personal loan calculator, you can compute your personal loan EMI value without fretting about any error.
Continue to read to be aware of the features linked with online personal loan EMI calculators and the major reasons to use them when sending an application.
What is an online personal loan EMI calculator?
An online personal loan calculator is a computation instrument to calculate personal loan offers provided by different financial institutions. Using this calculator, you can easily compute your personal loan EMI as per your repayment capacity. Note that to use this EMI calculator, you need to input the asked variable values like personal loan interest rates, loan amount, and repayment tenure.
Why is it necessary to use a personal loan EMI calculator before applying for a personal loan?
Helps identify the impact of personal loan interest rate
One of the vital aspects to concentrate on is the offered personal loan interest rate. It is because the loan’s rate has a massive impact on your monthly EMIs. By using the calculator, you can better understand if the rate of interest offered by the personal loan lender is appropriate.
Allows to try out different variations to reach at a suitable result
You will never know which personal loan plan is appropriate until you evaluate multiple loan plans. Here is where a personal loan calculator can assist. It is a tool that permits you to try out different variations and choose the appropriate one that best matches your requirement.
Free and simple to use
You require no technical knowledge to use the online personal loan calculator. You just need to input the asked details to get the suitable results. Moreover, the calculator is free to use and available online.
Accessible to all
Personal loan EMI calculators can be accessed through various platforms. You can use the calculator either from the aggregator’s site or app or lender’s website. There is no limit on the number of calculations. You can also use the online calculator if you have not availed the loan.
Works with minimal details
You do not require to add your personal details like name, mobile number etc., to use the online personal loan calculator.
Provides accurate results
If you are using the personal loan EMI calculator for computing your EMI, you do not require fretting about its accuracy. Personal loan EMI calculators provide accurate and error free results each time you input personal loan details. You do not require doing any manual computations or spend a lot of time to find out the personal loan EMI.
Helps in financial planning
Knowing your personal loan EMI amount through the calculator allows you to better understand your financial commitment that you are looking to make. Upon knowing the personal loan EMI value, you can make relevant changes in your expenses and budget to fit in your personal loan. Additionally, using the EMI calculator can even assist you to understand your personal loan affordability.
Using the personal loan EMI calculator provides you with higher transparency in your personal loan. This can assist you to determine a suitable repayment tenure and EMI. However, before you click on the personal loan apply button, remember that the personal loan interest rates can change (in the case of floating rate), as it is linked to RBI’s repo rate.