A personal loan is a type of special loan that offers borrowers the option of spending the sanction freely on any kind of purchase. It is a great way of paying for your personal expenses that are unsecured in nature, such as medical emergencies, vacations, home renovations, gifts, etc. As a result, personal loans are extremely popular among borrowers. To cater to this growing need for such loans, lenders have come up with individual personal loan apps that flaunt personal loan calculators to help you with the complex calculations related to your loan.
What is aPersonal Loan Calculator?
A personal loan calculator is a specially designed online calculator that instantly calculates your payouts for you so that you can plan the loan amount and your repayment tenure better.
The Equated Monthly Instalment (or EMI), calculated by the personal loan calculator, consists of the principal amount of the loan and the interest charged on it. This roughly translates into EMI = principal amount + interest paid on the personal loan.
The formula used to calculate EMIs for personal loan is E = P*r*(1+r)^n/((1+r)^n-1)
In the equation, ‘E’ stands for EMI, ‘P’ is the principal amount of the loan, ‘r’ is the interest rate charged which is calculated every month, and ‘n’ is the duration of the loan.
Features and Benefits of aPersonal Loan Calculator?
- By entering the loan amount along with the tenure and the interest rate applicable on the personal loan, the calculator automatically displays the total payment payable at the end, along with the final interest payable on the personal loan, and the EMI that you would need to pay during the tenure of the loan.
- Calculating the EMIs using the personal loan calculator helps you to know the amount of money you would need to set aside on a monthly basis for the repayment of the loan.
- As some lenders also offer the option to negotiate the loan tenure or the rate of interest, you can use the personal loan calculator to figure what numbers work best for you in this regard.
- You could also use a personal loan calculator to create a repayment schedule, which would chart out the periodic payments that need to be made throughout the tenure of your loan, separating the principal component from that of the interest component.
- A more precise idea of the expected final amount you would need to repay, would also allow you to adjust the loan amount or the duration of the loan, so that you can decide upon an EMI that best suits your financial capabilities.
- Calculating the expenses using the personal loan calculator, would allow you to compare the offerings with the offerings of other lenders, so that you can opt for the most cost-effective option.
- The personal loan calculator also lets you gain insight about the changes in EMIs in case your lender offers you the option of pre-payment or part- payment of your loan amount.
How to Calculate Personal Loans Using the Finserv MARKETS App
The Finserv MARKETS app by Bajaj Finserv is a financial app that also functions as a personal loan app to cater to all your personal loan needs. You can use the app to avail personal loans amounting to up to Rs. 10 Lakhs. The repayment tenure is also flexible and ranges between 12-60 months, while the interest rates start at 12.99%. The personal loan app also offers the option for you to calculate the loan EMI using a personal loan calculator. All you need to do is-
- Download the Finserv MARKETS app on your mobile
- Click on the Personal Loan EMI Calculator under Personal Loans
- Enter the personal loan amount, the rate of interest and the loan tenure
The amount of EMI you would need to pay for your personal loan will be calculated and provided to you.
Once you have figured the details pertaining to your loan, you can go ahead and apply for an instant personal loan on the Finserv MARKETS app itself by filling an online form with your details. Once verified, you will get an approval in 3-minutes, and the loan will be disbursed in your account in 24 hours. The eligibility criteria is also simple. You simply need to be a citizen of India within the age group of 23 to 58 years.
Whether you are hoping to buy a new home, or looking for some capital for your business, or have an urgent medical emergency, you could consider getting a personal loan to aid you with the expenses. However, getting a loan can leave you with questions, such as how much should the loan amount be, how much will the EMIs cost, how long should be the tenure, and what could be the interest rate. Using a personal loan calculator on a dedicated personal loan app, such as the Finserv MARKETS app can help you decide better.
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