An online personal loan calculator makes it simple for you to calculate your monthly payments. The equal monthly instalment plays an important role in determining the loan amount and term when you take out a loan. The personal loan calculator helps you arrange your loan and repayment more effectively by allowing you to calculate your pay-outs rapidly. EMI may be easily calculated by entering the loan amount, interest rate, and loan term into the calculator. If you’d like to adjust your EMI, you may do so here. To reduce your EMI, you can either reduce the loan amount or increase the length of time of your small personal loan. Increase the loan amount or shorten the term if you can afford larger monthly instalments.
How To Use A Personal Loan Calculator?
To utilise the personal loan calculator, input the following information:
- Loan amount: The amount you wish to borrow.
- Loan term: The amount of time you have to repay the loan.
- Interest rate: The percentage of the loan amount charged by the lender.
With only a few keystrokes, you can use the online personal loan calculator to compare and assess different loans.
- Total interest paid
It is the amount you pay for interest over the course of the loan. Poor-credit borrowers typically pay more interest overall than those with higher credit scores.
- Total paid
It includes the original amount you borrowed plus interest paid to the lender. However, the amount does not include any additional fees your lender might charge.
- EMIs (monthly payments)
It is the amount you can expect to pay each month throughout the loan term. Payments are applied to interest and the principal following a schedule of amortisation.
A longer loan term will result in a lower monthly payment but a higher interest payment. Conversely, shorter loan terms mean higher monthly payments but lower interest payments or the lowest interest rate personal loan.
How to get a personal loan?
Personal loans are available from credit unions, online lenders, and banks. Consider each option briefly:
Online lenders (NBFCs)
It is not surprising that the market for online personal loans is highly competitive. Borrowers can benefit from that: To attract customers, online lenders often provide low or no fees, competitive interest rates, and flexible payment plans. Moreover, the online option is likely to be the most convenient and fastest method of making your payment.
Credit unions
Those who live, study, work, worship, or study in the community can use credit unions for financial services. To apply for a personal loan, you must be a credit union member and have a certain amount in your savings account. Credit unions’ rates are often attractive, and they tend to be more willing to lend to borrowers with poor credit scores and thin credit histories.
Banks
Banks have generally higher interest rates and stricter lending requirements than credit unions, but there is no membership requirement. Furthermore, if you are already a customer at the bank, especially a local community bank, you might be able to qualify for a better loan or to get lower rates.
Features of Personal Loan
- High loan amount
No matter how big or small your funding needs are, lenders have you covered. For example, a salaried employee can borrow up to Rs. 25 lakh with a personal loan.
- Flexible loan tenor
Typically, lenders offer loan tenures of between one and six years, making it easy for you to repay the loan. In addition, personal loans can be tailored to fit your budget and minimize their chances of defaulting by choosing terms that suit your needs.
- Quick eligibility check
You can determine your eligibility in less than 2 minutes by visiting a lender’s website or downloading their loan app.
- Minimal documentation
Lenders require a copy of your ID, your address, and proof of your income.
If you have been a customer of a financial institution such as a bank or an NBFC for a long time, you are valued, and you have always taken good care of them. Therefore, if you negotiate with the bank regarding low-interest rates on personal loans, they will offer you the best terms. Also, if you are a good negotiator, you may be able to get a special offer from the bank and get the best loan terms.
The next step is to learn about the different bank’s interest rates after learning about the factors that affect personal loan interest rates. You can also check your EMI using the personal loan calculator tool. There is no doubt that other banks charge varying rates for small personal loans. Before making a final decision or selecting a bank, consider comparing different banks.
Read Also: A Beginner’s Guide to Personal Loan EMI Calculator