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30 JUNE, 2022
A personal loan is an easy-to-avail loan that requires no collateral and can be used for any purpose. So, whether you have to pay your medical bills, go on a holiday, help pay for your wedding, or need quick access to funds during an emergency, applying for a personal loan is the way to go. Before you do that, however, there is one very crucial and helpful step that can make the process of applying for the loan as well as repaying it back more effective and convenient. This involves using Kotak’s personal loan calculator. Not convinced? Let’s look at the reasons how this free, online tool can help you significantly:
1. Figure out the right EMI amount for you
Your personal loan Equated Monthly Instalment (EMI) may take up a sizable portion of your monthly salary. Hence, it’s important that you use the personal loan calculator to determine what amount of EMI you can comfortably manage to pay with your other financial obligations. You can adjust the loan tenure or change the loan amount multiple times with the personal loan calculator to arrive at a combination that best suits your needs.
2. Create a repayment plan
Once you have an estimate of your personal loan EMI, you can get down to the essential task of charting out a loan repayment plan by creating a monthly budget and looking at your overall personal finances. This ensures that along with paying your personal loan EMI, you can continue to meet your expenses, pay off any other debt, save and invest for financial goals, and more.
3. Maintain a good credit score
By using the personal loan calculator, you can ensure that you maintain a good credit score. This is because once you have an EMI estimate and have planned financially according to it, it will ensure that you do not default on any of your EMI payments. Defaulting on EMI payments impacts your credit score and can reduce your chances of taking other loans in the future.
4. Save time and effort
Kotak’s personal loan EMI calculator is designed in a way that ensures you get accurate results in a quick and seamless way. This saves you the effort of sitting with a calculator trying to manually calculate the personal loan EMI. Instead, with Kotak’s personal loan calculator, you can get results within a few seconds by simply entering a few basic details such as the loan amount you need, the personal loan interest rate estimate, and the tenure you want to opt for.
When you apply for personal loan or take on any debt for that matter, it is crucial that you have a sense of what that is going to mean for your finances. This means knowing the cost of borrowing i.e., the interest burden, the EMI obligation, the impact of your loan tenure, etc. Using Kotak’s personal loan EMI calculator is the first step towards this financial clarity.
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