When considering taking out an Instant Credit Loan, ensuring that the Equated Monthly Installment (EMI) is affordable is paramount. The EMI, representing the monthly payment toward the loan, comprises both the principal and interest components. Given that EMIs are payable over an extended period, affordability is crucial to avoid defaulting on repayments, which could lead to additional interest charges and harm your credit score. To mitigate such risks, it's imperative to calculate the loan EMI before committing to the loan. Calculation of Loan EMI Traditionally, the EMI rate is calculated using mathematical formulas, which depend on the type of interest charged on the loan. There are two common types of interest: Flat Rate of Interest With this method, interest is charged on the total loan amount availed. The EMI is calculated using the formula: EMI = (Principal + Interest) / Repayment Tenure in Months For instance, if you take a loan of ₹50,000 for 2 years at an interest rate of 10%, the calculation would be: EMI = (50,000 + 10,000) / 24 = ₹2,500 per month Reducing Balance Interest Before you Apply For Small Personal Loan Online, this method, widely used, calculates interest based on the outstanding loan amount. As the loan is repaid, the outstanding amount decreases, resulting in reduced interest payable with each EMI. The formula for calculating EMI under this method is: EMI = [P * R * (1+R)^N] / [{(1+R)^N}-1]Here, 'P' is the loan amount, 'R' is the monthly interest rate, and 'N' is the repayment period in months. For example, for a ₹50,000 loan over 2 years at 10% interest, the EMI would be:EMI = [50,000 * 0.0083 * {(1.0083)^24}] / [{(1.0083)^24} - 1] ≈ ₹2,307 Why bother with complex mathematical formulas when EMI calculators are readily available? EMI calculators are online tools that swiftly compute loan EMIs. Simply input the loan amount, tenure, and interest rate, and the Personal Loan Emi Calculator accurately determines the EMI. These tools are free and can be used multiple times to find the most affordable EMI. Cred offers EMI calculators that make calculating loan EMIs effortless. By visiting Cred's platform, borrowers can easily determine the most feasible EMI rate for their loan. Once the suitable EMI is identified, borrowers can proceed with loan applications confidently. It's advisable to calculate EMIs before availing of a loan and leverage EMI calculators to simplify the process. By ensuring affordability from the outset, borrowers can manage their finances effectively and navigate the loan repayment journey with confidence and ease.
When considering financial decisions that can impact one's life long-term, one must always plan properly to make informed decisions. Knowing terms, interest rates, estimated payouts, and charges help you understand what you are getting into and make the best of it. Not planning properly can lead to a situation where you cannot make the payments and are stuck between a rock and a hard place. Getting into debt might not be on the wishlist of many but life happens, and sometimes there is no other choice, but that should not stop you from making a choice that ultimately benefits you. Let us explore a personal loan, how to get one, and how to use an EMI calculator to make informed financial decisions. What is a Personal Loan? A personal loan is a type of loan typically not secured by collateral. It is favored over specialised loans such as home loans because of its wide range of applications and nearly limitless end-use cases. A personal loan, like any other type, requires an individual to repay the loan amount and the interest over the predetermined tenure. Which is the best application for a loan? A few months ago, I needed to get some funds urgently and decided to get a loan. After much research and asking several friends, I was recommended an app called Stashfin. I went through it thoroughly, and I was pleasantly impressed. It was not only easy to use but also highly convenient and quick. It helped me cover that urgent expense and make sense of my mess. How to get a loan? It was effortless to get a loan from Stashfin, and it was not only convenient as I could do all of this from my home, it didn’t need any physical documentation, and I got the money disbursed within hours. These are the steps I followed to get my loan: I downloaded the application. After which, I signed up using my mobile number. I filled in my details to check my credit limit. I completed the KYC and got my loan approved quickly. And within a few hours, I could get the money in my account and fund that expense. How to use a loan calculator? Using readily available tools, like a calculator personal loan, is extremely valuable when making financial decisions. All you need to do is visit the Stashfin Website and click the EMI Calculator tab. You can input the Principal amount you need, choose the repayment tenure, and add the interest rate offered there. Once you do this, you will be showcased the monthly EMI you need to pay, the total amount payable, the interest payable, and the effective interest rate. These will help you make an informed decision and plan your finances properly. For example, I needed a loan for Rs 3 Lakhs and was offered an interest rate of 12%. I make around Rs 50,000 every month and wanted the EMI to stay within 40% of my monthly income. I used the tenure slider to increase the repayment tenure and figured out that 18 months would be my best option. It meant I had to pay around 36% of my salary, which fit my expenses and needs allowing me to take this loan and pay my dues fearlessly. Conclusion Thus, the best option is to use a personal loan EMI calculator to simulate different scenarios and see what fits you and your financial ability best. It gives people the knowledge and ability to do these calculations quickly and accurately without doing so manually. These tools are readily available and possible for anyone and everyone to access so that you can make the right decision, compare between different lenders, estimate the monthly payments and interest rates, and get the best deal for your needs.
If you are planning to opt for a personal loan, keep in mind to have crossed a checklist before you do so. Availing of such loan types is undoubtedly an easy task, but you need to have a clear picture first of why you need this loan. Further, once you are eligible for this loan, there are tools such as a Personal loan calculator that help you with various aspects. We at Stashfin offer this tool for all potential borrowers so that they can easily avail of this facility by keeping in mind all the factors. Convenience, safety, and security is our topmost priority for all borrowers. What is a personal loan? It is a loan type that individuals can borrow easily from a bank or financial institution in order to fulfill their personal financial needs. Unlike certain types of loans that are specifically designed for a particular purpose, like a mortgage for buying a home or an auto loan for purchasing a car, a personal loan can be used for various purposes at the discretion of the borrower. These loans are versatile in nature and can easily be used for a wide range of personal expenses. This can include consolidating high-interest debt, paying for medical bills, financing a home renovation, covering education costs, funding a wedding or event, etc. The lender, whoever it may be, does not impose any kind of restrictions on how you, as a borrower, use the loan. What is a personal loan calculator? It is a pretty helpful tool that allows you to estimate the monthly payments and total cost of a personal loan based on specific inputs. It basically helps you understand the financial implications of taking out a loan and allows the borrower to quickly compare different loan options before actually opting for it. How to calculate your eligibility with a personal loan calculator? In order to calculate your eligibility, you should follow the below mentioned four steps: Open the personal loan calculator Go to our official website and easily access the calculator. Enter Loan Criteria Input the necessary information, such as the loan amount, tenure as well as the rate of interest. Calculate monthly payments The tool will help you compute the estimated monthly payments based on the amount of the loan, the rate of interest, and the loan term you are provided. Evaluate Affordability Compare the estimated monthly payments against your monthly income as well as expenses. Make sure that you can easily afford the monthly payments without straining your budget or finances. Conclusion This is no doubt a valuable tool for individuals who are planning to avail of this type of loan. It allows you to estimate monthly payments, the total amount to be repaid, and the total interest paid based on the amount of loan, rate of interest, and loan tenure. Therefore, by using this tool offered by Stashfin, a new loan app, you as a potential borrower, can make well-informed decisions about your borrowing needs and evaluate loan affordability.
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? 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. 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. 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. 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. 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.