A Personal Loan helps you fulfil various personal needs. However, before applying for one, it is important to know your repayment amount. One easy tool that helps you with this is a Personal Loan EMI calculator. It helps you estimate your monthly instalment and lets you plan better and borrow smartly. Let us see how you can use a Personal Loan EMI calculator the right way:

Select the right inputs

To begin with, ensure you enter the right values into the EMI calculator. These usually include the Loan amount, interest rate, and repayment tenure. Correct inputs provide accurate results, which clarify what your future payments will look like, helping you plan better.

Choose a preferred Loan amount

Start by entering the amount you want to borrow. It should be based on your actual need and how much you can repay comfortably. You can get a maximum Personal Loan of up to Rs. 40 lakh. You can adjust the amount in the calculator to match your needs and choose the one that best suits your needs.

Set the interest rate

Next, enter the interest rate offered by your bank. The interest rate varies depending on your bank and your profile. Therefore, ensure you use the correct figure to get an accurate EMI. Even a small change in rate affects your total repayment.

Pick a Loan tenure

Now, select your repayment period. Most Personal Loans offer tenures from 12 to 84 months. If you select a longer tenure, your EMI will be lower. Meanwhile, you pay higher EMIs but less total interest with a shorter tenure.

Try different combinations

The calculator lets you try different combinations. You can change the amount, rate, or tenure and observe how your EMI changes with various combinations. It helps you compare multiple Loan options and find what best fits your budget.

View total repayment

The calculator shows the total amount you can repay, including the Loan and interest combined. It gives you clarity about the total cost payable, which is useful when planning your finances and comparing options.

Know your budget’s limit

Before finalising the Loan, use the EMI calculator to set a clear budget limit. It ensures you do not borrow more than you can repay. When you know your Loan’s monthly outflow in advance, it becomes easier to manage your other expenses as well.

Apply for the Loan

At this stage, you are clear about every aspect related to your Personal Loan. You have assessed your financial requirements and explored the available Loan options. Therefore, you can apply for the one that best suits your needs, budget, repayment ability, and much more.

Conclusion

Using a Personal Loan EMI calculator the right way can make borrowing simple. It helps you plan your monthly expenses and stay on top of your budget. Before applying for any Personal Loan, try the calculator. It lets you control your money better and gives peace due to clear planning.