Financial planning is a dynamic process that requires careful consideration, calculation, planning, and execution. The world of finance can be ever-changing with fluctuations and downturns. Even assured savings investment tools like the Public Provided Fund (PPF) can offer different interest rates each financial year. In a world as fast-paced and active as this, the one financial tool that offers the greatest amount of ease and surety in planning is a personal loan EMI (equated monthly installments) calculator.
Here are some ways in which a personal loan EMI calculator can be effective in financial planning:
1. Helps find out the accurate monthly expenses towards your loan
Getting a loan is a practical and efficient solution to cover varied types of expenses, like buying a home, a car, or even holiday expenses. However, a loan can put you behind in your journey to financial freedom if not planned well.
A personal loan EMI calculator gives you a clear picture of what your expenses will be for the entire duration of the loan tenure. This further lets you plan and save for other kinds of expenses without last minute confusion and chaos.
2. Helps you start saving more for your goals
When you know how much you will end up paying in monthly EMIs out of each paycheck, you get a better understanding of how much more you might need to save to meet your goals. An EMI calculator lets you know the exact amount of EMIs for your loans. This helps you prepare a suitable budget around the EMI and ensures that your monthly savings stay as planned and do not take an unexpected hit.
3. Helps you choose the right lender and the best interest rates
Apart from the unique personal loan eligibility requirements of each loan provider, another major deterrent and deciding factor in picking the ideal lender are the personal loan interest rates. There are many options to choose from in the market. Many features can seem similar, and the process of selecting the best loan can be perplexing.
However, a personal loan EMI calculator can help you narrow down the EMIs for each loan. This allows you to choose the most attractive interest rates and the loan tenure best suited for you.
A personal loan is an ideal solution to cover any urgent or necessary expense that can arrive unexpectedly. It offers you the flexibility and freedom to lead the lifestyle of your choice without hampering your other goals. One of the best features of a personal loan is the ease of using an online calculator to predetermine your future EMIs. If you are looking for a loan to cover any pressing expenses, you can check out personal loans from Tata Capital. You can borrow up to Rs. 25 lakh and repay the amount within 12 to 72 months.