Both personal loans and credit cards are catching the fancy of young people these days. Without the need to provide any collateral, one can avail financing on the go.
Ofcourse there are conditions related to credit history and repayment capacity. But assuming that are decent enough, a person in need of fund always has these two options to chose from.
Now credit cards rates are very high. They can even exceed 40% at times. But on the other hand, personal loans are available from 15-20%. So it’s a no brainer that one should opt for personal loans if time permits. But how to know more about personal loans and its EMIs?
The answer is EMI calculators. These require only 3 pieces of information from you:
- Loan Amount
- Interest Rate
- Loan tenure
As soon as you provide these inputs, the EMI calculator will tell you the loan EMI that is applicable for given inputs. It will also tell you the total interest that you will be paying over the course of loan.
One can try different combinations of loan amount to see which EMI suits you. So lets say that you wish to know the possible loan amounts that you can avail for a Rs 10,000 EMI. So the answer(s) you are looking for are given below:
- Rs 1.10 lac (for 1-year loan)
- Rs 2.00 lac (for 2-year loan)
- Rs 2.85 lac (for 3-year loan)
- Rs 4.20 lac (for 5-year loan)
(Note – 15% interest rate has been used for calculations).
Getting to know the EMIs and possible loan amounts helps during the actual loan process. This is why its suggested to use these loan calculators to know everything about personal loans and deciding between credit cards and personal loans.