Whenever you take a personal loan, paying off the loan should be of high importance. You should never around with your debts. Every EMI missed, takes a toll on your credit score. And, a good credit score can only help you get personal loan easily in the future. Thus, planning is necessary for any debt product you take. Planning can only happen if you have a rough idea about the EMI payment that you have to make. The personal loan EMI calculator gives you an estimate of how much monthly outgo of payment will go towards EMI payment of the personal loan. It makes your life easier and much more simple. Let’s see what are the other benefits of using the personal loan EMI calculator:
Assists you with Planning: Like we stated earlier, in order to reach your financial objective, you will have to keep your toes under the sheet. You can’t be living the luxury life while paying the EMIs. Remember, servicing the loan takes priority over all other things. The personal loan calculator will help you plan out your monthly expenses by determining the EMI you will have to pay.
Very Easy to Use: The personal loan calculator is very easy to use even if you’re not that technologically sound. You don’t need to be a professional to use it. It is designed to be used by anyone. All you have to do is to fiddle around with three factors – loan amount, tenure and the interest rate.
Helps you choose Short Tenure: The Personal Loan EMI Calculator helps you choose the tenure for your loan. Remember, the longer the tenure the longer is the interest burden. That’s why try keeping the tenure sweet and short. This can again be done by balancing your expenses and savings. Borrowers are often lured into the trap of taking loans for higher longer duration baiting them with low EMI payments. This is a trap because you end up paying way more interest.
Quick Results: You just have to enter three details on the personal loan EMI calculator and within milliseconds the final result will be on your screen.
How to use the Personal Loan EMI Calculator?
Like we said, personal loan calculator is no rocket science. It is easy to use. All you have to do is adjust three parameters based on your needs – the Loan Amount, Tenure and Interest Rate. Once you adjust these factors, the result will be before your eyes in no time. You can use personal loan EMI calculator either on the banks or NBFC’s website, or on the website of some financial technology companies.
What are the Factors that will Help you get Lower Personal Loan Interest Rates?
High Salary: One of the biggest eligibility criteria that takes into consideration is that whether you’re a salaried individual or not. If you have a high net monthly income, offers you low interest rates. This is because your monthly income is a projection of your repayment capability. Higher the monthly income, the lower is the risk of defaulting. Thus, you can negotiate with the bank to offer you the lowest personal loan interest rates, if you have a high net monthly income.
Credit Score: Credit score is a reflection of your credit worthiness. In India, scores by TransUnion CIBIL is widely accepted. CIBIL score ranges from 300-900, where 300 is considered as the worst and 900 the best. Bank easily gives loans to customer if they’ve a score of 750 and above. Personal Loan interest rates are low if you’ve maintained a good CIBIL score.
Good Relationship: If you’re an existing customer and your relationship with Bank has been a good one, chances are that the bank may offer you personal loan at low interest rates. This is only possible if you’ve been good in terms of servicing your old loans or credit cards. So remember to pay your credit card dues on time to avail loan at low personal loan interest rates.