For those who are in need of emergency funds, personal loans are one of the best options to avail. However, before availing it, using an EMI calculator has become quite an important tool to get a fair idea of what you’ll be reaping out of your investment.
Nowadays, in the current era of digitalisation, availing such a loan is super easy and convenient. One just has to download the right application, like Stashfin, or visit our website, and you are more than good to go!
What is a personal loan?
As the term suggests, it is a type of unsecured loan that can help you meet your current personal financial needs. This loan type does not require you to pledge any security or collateral and is available with just basic documentation. The amount availed by the potential borrower from this loan type can be used to fulfil expenses, such as home improvements, marriage expenses, medical emergencies etc.
Unlike certain types of loans, like a house or car loan that are used only for one purpose, a personal loan with EMI is flexible and can be used for a variety of purposes, as mentioned above. Moreover, they don’t require any collateral, such as a car or house, to be pledged as security in order to secure the loan. Instead, the lenders rely totally on the borrower’s creditworthiness and ability to repay the loan amount.
What is a Personal Loan EMI Calculator?
One of the most essential tools in the current times before availing a personal loan is this calculator. It helps the potential borrowers calculate their Equated Monthly Installments (EMIs) on a personal loan.
To use this helpful tool, the borrower needs to enter certain inputs such as the amount of the loan, rate of interest and tenure. Once these mandatory details are entered, the calculator displays the EMI amount that the borrower will have to pay each month towards the loan repayment.
The calculation of the EMI takes into account both the principal loan amount and the interest charged on it and is spread out over the loan tenure.
How does a personal loan EMI calculator work?
This tool is relatively easy to use, and people of any age group can easily use it without hesitation. Here is a step-by-step guide on how this tool works:
Amount of loan
The first and foremost step is to enter the amount of loan you wish to borrow from the lender.
Secondly, enter the tenure, i.e., the duration for which you want to borrow the loan. This is usually in months.
Rate of interest
The third step is to enter the rate of interest charged by the lender on the amount.
Further, based on these factors, the EMI calculator calculates the monthly instalment amount you’ll have to repay the loan. The calculation is done using a mathematical formula that takes into consideration the loan amount, duration and interest rate.
The first and foremost focus of Stashfin is to offer feasibility to its users. With just a few taps/clicks, you can easily calculate everything at your fingertips and further avail a personal loan without any hassle.