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09 MARCH, 2022
A personal loan is a multipurpose loan. You can get the loan online instantly, provided you meet the eligibility criteria. Additionally, you also get to use many beneficial tools such as the free personal loan EMI calculator. Read on to know more.
What Is a Personal Loan EMI Calculator?
Several factors affect personal loan interest rates. These include the principal amount of the loan, the duration of the loan, the borrower’s credit score, etc. The interest rate has a bearing on the EMI too. The personal loan EMI calculator allows you to understand what the EMI liability will be once you take the personal loan.
How Does the Personal Loan EMI Calculator Work?
The personal loan EMI is calculated based on of the following formula:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
You can use the EMI calculator to easily do the calculations in a matter of minutes.
Benefits of Personal Loan EMI Calculator
1. Free of charge and easy to use
The EMI calculator is available free of charge. You can visit the website of your bank or NBFC and get the results calculated in no time. It is one of the easiest online financial tools to use. You just need to enter some basic details such as your loan amount, tenure and interest rate. Once that is done, you can see the results flashed on the screen.
2. Provides a visual representation of your liability
The personal loan EMI calculator gives you a complete schedule of your liability and provides you with a visual representation of the entire outstanding, so that you are not up for a surprise at any point in time. You have your entire loan amortization schedule in front of you right at the beginning of the tenure!
3. Allows you to adjust the personal loan
If you use the personal loan EMI calculator and see that the EMI is higher than what you had in mind, you can adjust the principal or tenure of the loan. Doing so may lower the EMI volume and make it more affordable for you.
4. Helps you to budget for your financial goals
When you know what your EMI liability is, you can plan your finances accordingly. Make a budget and keep the required sum of money away each month to smoothly pay off the EMI on your personal loan. This will help you clear the loan in a proper and quick manner.
5. Helps in negotiations for a better rate
Last but not the least, an EMI calculator gives you an indication of how the EMI schedule would look like. This would help you negotiate the rates with your lender, if needed, and settle for a better personal loan interest rate.
As you know, it is very simple to get a personal loan online these days. Make sure to consider the above-mentioned advantages of using a personal loan EMI calculator. It is important to use a calculator as it allows you to know your estimated EMI when you plan to take a personal loan. Make use of it and get an attractive personal loan offering today with Kotak Mahindra Bank.
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