While personal loans have become more convenient than ever, they have many doubts and uncertainties. Equated Monthly Instalments or EMIs are easy and convenient options to repay your loan.
Data shows that the people with existing personal loans struggle to repay them timely even after converting them into EMIs. Since personal loan interest rates might vary based on a person’s credit score, income, and even age, an EMI calculator can come in handy anytime! It will help to understand if someone will be capable of paying them on time or not!
To understand how an EMI calculator works, let’s start with understanding the concept of an EMI itself.
What is an Equated Monthly Instalment (EMI)?
EMIs divide the total payable amount into short, affordable amounts which need monthly payments. These payments have a due date before the borrower must pay the EMI amount. EMIs last up to a specific tenure based on the bank or financial sector and the type of loan.
Since not paying EMIs on time can negatively affect your credit score, it is better to find the possible EMIs for your personal loan before taking one.
What is an EMI Calculator?
An EMI calculator is a tool to calculate your estimated EMIs online. It uses your basic information, such as the amount of loan required and the estimated amount you would be able to pay monthly, to calculate your monthly payables.
Here are some advantages of using an EMI calculator
- Convenient
One of the first reasons to use an EMI calculator is that it is very convenient. You can access this tool via the internet and get an estimation of the monthly payables just by putting in little details.
The EMI calculator also works as an interest rate calculator since it provides the estimated amount, including the EMIs.
- Easy Access and Navigation
These calculators tend to be highly user-friendly. They do not need the user to put much information on the website. Instead, only two to three pieces of information are enough to get an estimation. You might be wondering about the interest rates and the other applicable changes and expect to do complicated maths, but these calculators take that hassle from you.
Make life a little easier with Clix Capital’s Personal Loan EMI Calculator, which needs only two details from a potential borrower; the amount of loan required and the amount the borrower could afford monthly to find the best-customized plan. It also helps to understand the personal loan interest rates.
- Quick Calculation
This process is extremely fast since this is an electronic tool with pre-entered formulas. The EMI calculator will not need more than a few seconds to calculate your EMIs. While the manual procedure might take hours, considering the factors, you can easily avail of this tool with just a click on your device. An added advantage of Clix Capital’s Personal Loan EMI Calculator is that it also works as an interest rate calculator!
- Removes the Chances of Humane Errors
Despite being extremely fast, it is efficient too. It eliminates the chances of manual errors. Doing the maths and calculating the EMIs can leave space for manual mistakes, and these loan calculators ensure exact results without any possibility of human errors. It helps to make quick decisions while not being afraid of the possible outcomes.
- Gives an Estimation
Since not paying the EMIs within the due date can impact one’s credit score, these EMI calculators help find the best possible solution to repay the loan on time. They help the borrowers understand what loan amount they should take without risking their credit scores. It secures the borrowers’ credit score while assisting them in repaying the loan quickly without feeling pressured or uncertain. Because of the certainty, anyone can make quick decisions regarding their wants.
Conclusion:
A personal loan EMI calculator will help you to calculate the total finance cost and also your money term during which repayment period you need to pay for the loan amount. It also gives information about your credit history, monthly payment, interest rate, and other terms of loan agreement. The best part of using an EMI calculator is that it gives you more time to figure out your budget. This way, you can plan ahead and cut down the duration of loan payment, since the lender keeps spreading out the loan over a period of time.
Also Read: How to Secure Private Money Lending for Your Business
