Every person has a different financial background. Some people can afford to buy costly things, whereas others cannot even meet their daily requirements. Many people rely on moneylenders and personal loan providers to fulfil their financial needs. They include clearing debts, covering unplanned emergency expenses, refurbishing houses, financing funeral expenses, covering moving costs, and making large purchases such as vehicles and other appliances.
In such cases, calculating the EMI on a loan can seem challenging. Hence, banking and other financial websites offer a personal loan EMI calculator to calculate the approximate rate of return on the EMI and the repayment towards the principal and interest amount. Whenever a person pays EMI, the principal payment comes after the personal loan interest rate. Every month, the calculation of the interest depends on the outstanding principal amount.
Method of usage
Though the EMI calculator for personal loan is helpful, many people still do not know how to use it and find it confusing and complicated. They may also take some time to understand its functions.
Here is a guide:
· Use the slider for selecting the desired loan amount according to the financial need.
· Fill in the interest rate offered by lenders. Do not change the value as per personal preferences.
· After choosing the interest rate, use the slider to select the loan tenure. The higher the term, the lower will be the EMI value.
Note: The user is required to submit accurate information to get the right amount.
After entering all these figures, the personal loan calculator will calculate and display the payable EMI amount.
Using the EMI calculator is as easy as using the regular calculator. The user must punch in the loan amount in the first bar, slide to adjust the interest rate and the number of years for which the loan is valid. Within milliseconds, the EMI calculator personal loan displays the amount that the user must pay per month. It also gives an exact idea about the total amount that the user will have to pay to the bank and helps in preparing for the future.
The calculator also offers the ‘Approval in Principle’ service to check the user’s eligibility for acquiring the loan. The process does not require any paperwork. Just provide a few necessary details of the income and the employer (mention if self-employed) and submit it to evaluate the eligibility for the loan. Fill in the loan amount and the tenure with the help of the slider. The calculator highlights the savings and provides other necessary details, too.
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