Why Every Personal Loan Applicant Should Embrace EMI Calculator?

Posted on Friday, September 8th, 2023 | By IndusInd Bank

Taking out a personal loan can be a significant financial decision. Whether it’s for a dream vacation, home renovation, or emergency expenses, a personal loan provides a convenient way to access funds when you need them. However, managing a personal loan wisely is equally important to prevent any financial strain. This is where the Personal Loan EMI Calculator comes into play. In this blog, we’ll discuss why every personal loan applicant should embrace the EMI calculator. 

1. Accurate Loan Repayment Planning 

One of the primary reasons to embrace an EMI calculator is its ability to provide accurate loan repayment planning. When you apply for a personal loan, you know your loan amount and tenure while the lender informs you about the interest rate. With this information, you can use the EMI calculator to determine the exact monthly installment you’ll be paying. This precision allows you to plan your monthly budget more effectively, ensuring that you’re never caught off guard by unexpected loan repayment amounts. 

2. Evaluate Loan Affordability 

Before applying for a personal loan, it’s crucial to evaluate whether you can comfortably afford the monthly repayments. By inputting different loan amounts and tenures, you can instantly see how your monthly EMI changes. This empowers you to find the right balance between borrowing what you need and ensuring that the EMI fits within your budget. 

3. Compare Loan Offers 

Personal loans come with various interest rates and tenures, depending on the lender and your creditworthiness. The EMI calculator acts as a handy tool to compare loan offers from different financial institutions. You can input the details of multiple loan options and see which one provides the most favorable EMI and overall cost. This allows you to make an informed decision and select the loan that suits your financial situation best. 

4. Transparency in Loan Terms 

Transparency is essential when dealing with any financial product, and a personal loan is no exception. By using an EMI calculator, you gain transparency in understanding the exact terms of your loan. You can calculate the total interest payable over the loan tenure and the EMI breakup (how much goes towards interest and how much towards the principal). This transparency ensures that there are no hidden surprises or unexpected charges during your loan repayment journey. 

5. Avoid Financial Stress 

Financial stress can be overwhelming, and struggling to meet loan repayments can lead to this stress. Embracing an EMI calculator can help you avoid this situation by allowing you to plan your finances effectively. You’ll know exactly how much you need to set aside each month for your loan EMI, reducing the risk of defaulting on payments and the associated penalties. 

6. Quick and Convenient 

Using an EMI calculator is quick and convenient. All you need to do is input the loan amount, interest rate, and tenure, and the calculator instantly provides you with the EMI amount. This speed and ease of use make it an invaluable tool for personal loan applicants, saving time and effort. 

7. Make Informed Decisions 

When you use an EMI calculator, you gain a deep understanding of the loan terms and their impact on your finances. This knowledge empowers you to make informed choices regarding your personal loan. You can adjust variables like the loan amount and tenure to see how they affect your EMI, helping you find the right balance that aligns with your financial goals. 

8. Track Loan Progress 

Once you’ve secured a personal loan, the EMI calculator remains a valuable tool throughout your loan repayment journey. You can use it to track your progress, see how much principal you’ve repaid, and how much interest you’ve saved through prepayments or timely payments. This visual representation of your loan progress can be motivating and encourage you to stick to your repayment plan. 

9. Avoid Over-Borrowing 

Lastly, an EMI calculator helps you avoid over-borrowing. It’s tempting to request a larger loan amount, but this can lead to higher EMIs that strain your finances. By using the calculator to determine the EMI for various loan amounts, you can make a rational decision based on what you truly need and what you can comfortably repay. 

Conclusion 

Every personal loan applicant should embrace the EMI calculator as an essential tool in their financial toolkit. It provides accurate repayment planning, helps you evaluate loan affordability, and enables transparent decision-making. By using this tool, you can avoid financial stress, make informed decisions, and ultimately manage your personal loan more effectively. So, before you apply for your next personal loan, be sure to turn to the EMI calculator for guidance and peace of mind. 

If you’re looking for an instant personal loan at best-in-class rates, then do check out IndusInd Bank Personal Loan that is mindfully designed to fit into the varied needs of individuals as per their lifestyles. With IndusInd Bank Personal loan, you get to enjoy instant approval, quick disbursal, and flexible repayment tenure options. That’s not all, its application process is 100% paperless with minimal or low processing fee*. 

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Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.