There is nothing in this world exists without roots and branches, be it metaphorical or practical. From a natural thing like plants to the reality of the human body and its existence, they are all the mixture of many things that define the purpose of their existence. Now, coming straight to the topic, we know that loans consist of rate, tenure and loan amount. The repayment of the loan is done with the help of a loan calculator.
In this article, we are focusing on the purpose of using a loan calculator. To be precise, we are talking about the purpose of a personal loan EMI calculator even though all calculators have the same functioning.
Why is it preferred to use personal loan EMI calculator
Below are the reasons or maybe we should say the advantages of using a loan EMI calculator.
- Accurate results– One of the main advantages of using an EMI calculator is that it gives you accurate results, unlike manual calculation where the possibility to make mistakes is more. So, whenever you want to know the information about your loan, use an EMI calculator and get the idea of the exact payment you will have to pay to the corresponding bank.
- Time-Saving- Since everyone is getting busier each day, a tool like this makes it convenient for people to save time. As soon as you mention, the amount, the interest rate and the tenure you have been offered, you get the details of all the payments within few seconds.
- Flexible Adjustable- You will be surprised to know that you are free to use the calculator n number of times. Yes, generally, people prefer using this tool before applying for any loan to check their affordability.
- Easy Comparisons- With the help of the calculator, you can compare all the offers available in the market and then choose the best one for yourself.
- More than EMI- The calculator gives the information more than the monthly installments like the total interest outgo and the total amount (principal+interest). Other than these, you get the amortization schedule.
- Suits your Budget- When you check the installments in advance, you can see if you will be able to manage that particular amount without affecting your other financial liabilities.
- Accounted Processing Fee- A normal EMI calculator would tell you the payments only on the basis of the interest rates. But, as you know there are some processing fees charged on your loan which is not included in the interest rate. Since the interest rates, banks do not count processing fees. However, there are some calculators that would count the processing fees also.
Personal Loan EMI Calculator
The calculator shows results on the basis of the loan amount, interest rate and tenure on the loan. Here is an example for your better understanding:
- Loan amount– ₹5,00,000
- Interest rate– 11.35% p.a.
- Tenure– 5 years
The EMI, Total Interest Outgo, and Total Amount (Principal+Interest) will be as follows:
Total Interest Outgo– ₹1,57,521
Total Amount– ₹6,57,521
There are different types of loan calculators available such as SBI EMI calculator for a personal loan, HDFC loan calculator, etc.