The urgent need for funds can arise anytime, and the trend to avail of personal loans is rising. In the current era of digitalization, getting a personal loan is as easy as ordering food/groceries from your smartphone. You need the right platform and an internet connection.
Undoubtedly, the accessibility of financial applications has led to a healthier India in financial terms. However, the days when people used to travel to banks to access loans are way behind us. Now, it’s just you and your internet-enabled smartphone.
What is a personal loan?
As the term suggests, it is a type of loan issued to an individual borrower by a financial institution based on creditworthiness and income. These are unsecured loans which basically means that they are not backed by any collateral, such as a home or car.
When you, as a potential borrower, avail this type of loan, keep in mind that you can use it for various purposes. From covering wedding/event expenses to renovating your abode, you are more than free to use the funds for any purpose. However, remember that if you avail this loan, you are liable to pay it over a fixed period, with regular monthly payments.
What are its advantages?
-
Flexibility
It is flexible in nature as it can be used for any purpose. Be it paying for a wedding/event, home repair or renovation, vacation etc.
-
No Collateral
Unlike other types of loan, such as car loan or home loan, these type of loans is unsecured. This means that they do not require collateral.
-
Fixed Rate of Interest
These loans come with fixed interest rates. This defines that the interest rate will remain the same over the life of the loan, making it easier for individuals to plan their finances.
What is a personal loan calculator?
It is a tool that helps in easy loan planning by allowing potential borrowers to estimate their monthly loan payments and total interest costs based on the loan amount, rate of interest, and repayment tenure.
Now, several options are available on the internet if you are looking for such a calculator, but the one offered by Stashfin is quite easy to use. Not promoting any brand or organization here but believe me, it is one of the best tools to use.
Just enter the loan amount, rate of interest and tenure to get an estimated monthly payment and the total amount of interest that will be paid over the loan life.
What are the advantages of using it?
-
Accurate Loan Repayment
It helps you calculate your monthly repayment amount accurately. This way, you get a clear picture of how much you need to budget for your monthly payments.
-
Saves Time
Doing calculations manually are hectic and time-consuming. Therefore, this tool helps you to save a lot of time by offering quick and accurate calculations.
-
Transparent
These tools provide you with all the information you need to make informed decisions about your personal loan. It helps you know how much you’ll be paying monthly and the total interest amount over the loan tenure.
Conclusion
Always remember that using this tool (personal loan calculator)before investing will help you achieve great results. Moreover, it has become a mandatory step before investing as it gives a clear picture of what you’ll be reaping from your investment.
