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Using A Personal Loan EMI Calculator to Determine Affordability: Things to Consider
Posted on Monday, May 8th, 2023 | By IndusInd Bank
It is crucial to consider loan amount, tenure, and interest rate to determine your EMI accurately. Use IndusInd Bank personal loan EMI calculator to calculate your monthly loan installments.
Taking out a personal loan is a major financial decision requiring careful consideration to avoid unwanted stress. A personal loan EMI calculator can help you determine your loan’s affordability in minutes.
Using this powerful tool, you can assess whether you can comfortably repay the loan without putting an undue strain on your finances. In this blog, we will explore the key factors to consider while using a personal loan EMI calculator to provide you with the information you need to make informed financial decisions.
Major Factors That Influence Personal Loan EMI
Let us look at the factors that impact your loan EMI.
Loan Amount
If you plan to borrow money, you should know that borrowing a higher amount will lead to a higher EMI. Furthermore, opting for a longer payback period may lower your EMI but increase the overall interest amount. Opt for a shorter payback period, if possible, as it can save you money in the long run.
Interest Rate
The interest rate is the percentage the lender charges on the loan amount. Your monthly instalment amount will increase if the interest rate goes up. It is important to compare the interest rates offered by various lenders to find the one that suits your needs and offers the best terms for you.
Loan Tenure
The loan tenure refers to the duration of the loan repayment period. If you choose a longer loan tenure, your EMIs will be lower, but you will pay more interest over time. On the other hand, a shorter loan tenure will result in higher EMIs, but it will help you save on interest.
Income & Expenses
Before applying for a loan, examining your monthly income and expenses is crucial. Assess whether your income is enough to cover the monthly loan installments without compromising your essential expenses, such as food, housing, and utilities.
Tips To Improve Your Loan Affordability
Here are some effective ways to improve your loan affordability.
| Improve Credit Score | Make EMI payments on time to maintain a clean repayment track record and improve your credit score. |
| Pay Off Existing Dues | Pay off any personal or vehicle loans and credit card debts before starting the loan application process. |
| Show Additional Income Sources | Mention other income sources like incentives, bonuses, and investment avenues to boost your loan affordability. |
| Choose A Longer Tenure | Opt for a longer loan tenure to divide your EMIs over time, reduce financial burden, and boost the chances of loan approval. |
| Avoid Multiple Loan Applications | Avoid applying for multiple loans, as this can negatively impact your credit rating and decrease the chances of approval with favourable terms. |
| Add A Co-borrower | This may help you qualify for larger loan amounts with lower interest rates and better repayment terms. |
Use IndusInd Bank Personal Loan EMI Calculator
IndusInd Bank’s personal loan EMI calculator is a fantastic tool to help you explore your loan options. You can use its intuitive interface and customisable inputs to experiment with different loan amounts, interest rates, and tenures and find a repayment plan that suits your unique financial situation. The calculator’s instant results feature eliminates tedious manual calculations, saving time and effort while ensuring accurate results. This calculator lets you maintain control over your finances and avoid unpleasant surprises.
Calculate your loan EMI effortlessly and make informed borrowing decisions with IndusInd Bank personal loan EMI calculator! Apply Today!
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.
