When Gautam decided to apply for a personal loan, everyone gave him financial advice. His uncle told him to use his savings instead. His friend told him to take a personal loan and use any excess to go on a holiday. His boss told him to opt for a new credit card. With so many different opinions, Gautam decided to research the various options given to him to find the best one. He looked at a personal loan equated monthly instalment (EMI) calculator. This helped him understand how much the loan would cost him, and the figures helped him make a decision. He took an affordable loan and completed his task.
The Benefits of Using an EMI Calculator
An EMI calculator is the only advisor you need before availing a personal loan. These calculators are available online and are extremely easy to work with. They tell you the exact interest amount you will have to pay on each EMI, giving you a complete picture of how much the loan can cost you. Let us take a closer look at the benefits of an EMI calculator:
- Convenient: An EMI calculator is a convenient online tool. All you have to do is enter your details and your loan requirements. You then get the data from all the loan providers and an estimate regarding your loan dynamics. The calculator tells you how much you must pay back each month and what your rate of interest on the loan will be. As it is already available online, you can find all this information quickly and right from your home. This means you do not have to meet different lenders to find suitable offers or loans.
- Quick: An EMI calculator is super quick to use. You can use it before you take your loan to get all the details about the loan that you need. It can give you a fair idea about the repayment structure. More importantly, it is a completely uncomplicated tool, which makes the entire process easy as well.
- Unbiased: An online EMI calculator is completely unbiased. It will not consider any other factor while decoding your EMI dynamics. It will give you the accurate results after you feed in your information. This can also help you make the right choice as all the important information is right in front of you.
- Loan Specific: The EMI calculator calculates the EMIs for each loan. So, there is no room for confusion related to the many other loans available. You can get the figures for each loan that you have taken and organise your finances accordingly. All you have to do is enter the details of all your loans under separate heads. Then keep a tab on the final figures.
The Bottom Line
It is wise to use an EMI calculator before you take a personal loan. The calculator will give you an accurate idea about your monthly EMI liability. If the amount seems too big, you can opt for a smaller loan. It also helps you figure out an ideal loan repayment tenure. The main aim of using an EMI calculator is to see whether the loan is affordable. However, remember that a personal loan should be viewed as a financial option only when you need it and if you are sure you can repay it.