Be it any type of loan, EMIs (Equated Monthly Installments) are an integral part of it. Whenever a potential borrower plans to avail of a loan, they agree to repay the amount of the loan in monthly installments, which includes both principal and interest rates as well.
These are important for borrowers as they provide a fixed schedule for repayment, making it relatively easy for them to plan their finances accordingly. Stashfin, the new loan app, offers this tool for the convenience of all potential borrowers.
What is a personal loan?
A personal loan is a type of loan that individuals can borrow in order to meet their personal financial needs. These can be availed from a bank, credit union or an online lender, the most preferred option in the current digital era.
Unlike other types of loans, such as car or home loans that bounds the borrower to certain purchases only, a personal loan can be used for a variety of purposes. From renovating your home, planning a wedding/event, paying for medical expenses, or even going on a family vacation, you, as a borrower, are free to use these funds as you choose.
What is an EMI calculator?
As the name implies, it is an online tool that helps borrowers estimate the EMI that they’ll have to pay for a specific loan amount, rate of interest, and tenure of the loan.
To use this tool, you need to download our application on your internet-enabled smartphone or simply visit our website. Then, based on the inputs you receive from this tool, one can easily generate the EMI amount they’ll have to pay.
What is the importance of the EMI Calculator in getting a Personal Loan?
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Planning
An EMI calculator helps in planning finances in a very effective manner. By inputting factors such as the amount of loan, rate of interest, and tenure, you can easily determine the monthly installment you’ll have to pay. This allows you to assess whether you really can afford the loan or not and helps in planning the budget accordingly.
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Comparison
When looking out for options, a loan calculator helps you compare the monthly installments for each loan option. By analyzing how much you’ll have to pay every month, you can identify the most affordable option that suits your requirement.
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Affordability Analysis
With an EMI calculator, you get to experiment. This helps you find a suitable combination that suits your financial capacity. It basically enables you to determine how much you can comfortably repay each month without straining your finances.
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Interest Cost
This tool also displays the interest amount over the total loan tenure. This information helps you assess the total interest paid throughout the loan, enabling you to evaluate carefully the overall cost of the loan.
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Tenure Adjustment
Using an EMI calculator, you can adjust the loan tenure to see the impact on the EMI. For example, shorter tenures result in higher monthly installments but lower interest costs, and on the other hand, longer tenures may lead to lower EMIs but higher interest costs.
Conclusion
Calculator personal loan has become a mandatory step nowadays before availing of a personal loan. EMI is paid from your hard-earned money, and being a wise citizen, you should be well aware of your finances in much advance. Therefore, whenever you plan to avail of a personal loan, first use this calculator and then plan accordingly.
