Taking a personal loan has become very easy these days, but choosing the right loan is important. A personal loan calculator is a tool that gives you information about the EMI, interest rate, and total payment of the loan before you take it.
How does a personal loan calculator work?
This tool asks you three things:
How much loan do you need? (Principal Amount)
What is the interest rate? (Interest Rate)
How long do you want to repay? (Loan Tenure)
After filling these, the calculator will quickly tell you your EMI. This calculation is done using a special formula, which may seem a little difficult, but the calculator does this work for you in a jiffy!
Why use a personal loan calculator?
Helpful in planning: If you know how much EMI you will have to pay every month before taking a loan, then you can do your planning well.
Right decision: You can check EMIs for different loan amounts and tenures to know which option is right for you.
No tension: Knowing how much it will cost to repay the loan can help you avoid unexpected expenses.
Benefits of a personal loan calculator
Time saving: Doing the calculations yourself takes time, using a calculator can do it quickly.
Accurate information: The calculator tells you the correct EMI.
Easy to compare: You can compare loans from different banks and choose the best option.
Frequently Asked Questions (FAQs)
Is the calculator free? Yes, most banks and online platforms offer this tool for free.
Is the calculation accurate? Yes, the EMI that comes out of the calculator is almost correct. But it can vary slightly depending on the bank’s offer.
Is it necessary to use a calculator before taking a loan? Not necessary, but it will help you a lot in planning.
So, if you are thinking of taking a personal loan, do use the calculator once!