Last Updated on February 16, 2024 by Nasir Hanif
Worried about financial constraints? Need to pay off your kid’s school fees immediately? One of the convenient and easy ways to generate funds quickly is applying for a personal loan. But first, you have to evaluate the EMI that you have to pay.
Have You Checked The Factors That Affect The EMI?
Equated Monthly Installments or EMI is the amount that you have to pay to the financial institution every month to repay the loan. The factors that affect the EMI are:
- The Loan Amount: The financial institution decides the maximum loan amount that can be disbursed to the client by considering the repayment capacity of the client. For a higher loan amount, the EMI payable is higher.
- The Rate of Interest: Higher the rate of interest higher is the EMI of the personal loan. In this case, the bank also checks factors like repayment capacity, the credit history of the applicant, and the income of the applicant.
- The Tenure of The Loan: Higher the loan tenure lower the EMI of the personal loan. But if you choose a longer loan tenure then you have to be ready to pay more interest.
Keen To Know The EMI Calculation Formula?
The below-mentioned formula is used to calculate the EMI:
P x R x (1+R) ^N / [(1+R) ^N-1]
- Where P is the principal amount of the personal loan that you plan to take from the financial institution.
- Where R stands for the rate of interest that you have to bear
- Where N is the number of monthly installments for repaying the personal loan
The interest rate and the loan tenure are very crucial factors for the loan EMI. The EMI is high if the interest rate is high. The EMI is high if the loan tenure is long.
Do these complex calculations carefully. There are chances of making mistakes in manual calculations. This can affect your loan planning adversely. One mistake and you may end up choosing the wrong personal loan product. Now you might be wondering if there is a way to avoid these complicated manual calculations. Yes, there is! It is an online tool that can make your life easy!
Confused With The Complex EMI Calculations?
These complex EMI calculations are confusing. There are probabilities of making errors in the calculation. But there is no need to worry as there is a tool that is easy to use. We are talking about the personal loan EMI calculator.
- A personal loan EMI calculator is an online tool to calculate the EMI
- There are some parameters that one has to enter. The EMI is calculated automatically.
- The 3 parameters that you have to enter are the personal loan amount that you want to borrow. This is known as the principal amount of the personal loan. The second parameter is the interest rate charged by the financial institution from where you plan to borrow the personal loan. The final parameter is loan tenure. This is the period required to repay the loan.
Using The Personal Loan EMI Calculator Is Easy Play:
When you are using the personal loan EMI calculator you don’t have to worry about complex calculations. The online tool is there to do the job for you. There are only a few steps that you have to follow in the case of the personal loan EMI calculator.
- Step 1: Go to the page of the personal loan EMI calculator of Money View.
- Step 2: Enter the loan amount or the principal amount that you plan to borrow from the financial institution. By adjusting the slider you can change the loan amount.
- Step 3: Next enter the interest rate on the personal loan amount that the financial institution is going to charge. Here also the interest rate can be changed by moving the slider.
- Step 4: Finally enter the loan tenure by adjusting the slider.
Once you enter the required details the calculations are done by the online tool. You get a table that gives you the details of the EMI that you need to pay. In this table, you also get the breakup of the installments.
Take A Look At The Vast Benefits Of Personal Loan EMI Calculator:
The personal loan EMI calculator has become immensely popular due to its multiple benefits. Here is a list of some of the important benefits of a personal loan EMI calculator.
- Comparison Of Loans Becomes Possible: Once you have entered the principal amount and the loan tenure of the personal loan, adjust the interest rate. You get the details of the EMI that you need to pay for different interest rates. This makes it easier for you to compare the personal loan products of different financial institutions. This makes it easier to choose a personal loan product that suits your requirement.
- Save Your Precious Time By Choosing The Option Of EMI Calculator: No need of using any complex formula. No need to do any complicated time-consuming calculations. Personal loan EMI calculator does the calculations quickly and this helps in saving time.
- Personal Loan EMI Calculator Is Easy to Use: Using the personal loan EMI calculator is very easy. You have to simply enter the parameters by moving the sliders and you get the EMI details easily. There are no complex procedures to be followed while using this EMI tool.
- This EMI Calculator Is Accurate: In the case of manual calculations, there are chances of making mistakes. But why take this risk when you have such a wonderful online tool that gives precise results? The personal loan EMI calculator is an accurate tool. It gives correct details about the EMI that has to be paid for a particular loan amount.
- Helps You Decide The Loan Tenure: With the help of the EMI calculator you can change the loan tenure and check the EMI amount that you have to pay. This makes it easier to choose the loan tenure that suits your repayment capacity.
- Get Complete Details of The Repayment Schedule: In the case of a personal loan EMI calculator, you get a table that gives details of the repayment schedule. From the break up it becomes easier to understand the interest that you need to pay and the outstanding amount.
- Access The EMI Calculator Easily: The personal loan EMI calculator is an online tool that you can access from any device. You can access the personal loan EMI calculator from anywhere and at any time. No matter where you are, next time you want to check the details about the EMI just log into the Money View portal. Follow the process of using the online EMI calculator and get the results instantly.
- The Online EMI Calculator Is A Free Tool: This amazing online EMI calculator which can do complex calculations in split seconds is a free tool. Use it as many times as you want to calculate the EMI amount.
- Personal Loan Planning Becomes Easier: With the help of the online personal loan calculator, you can check different permutations and combinations. This makes personal loan planning easy.
Are you planning to borrow a personal loan from a financial institution like Money View? Then begin the process by using the Money View personal loan EMI calculator. This easy-to-use tool does complex calculations in a fraction of a second. The calculations done by the EMI calculator are accurate. By using the personal loan EMI calculator, you can choose the financial product that suits your requirement and repayment capacity. For more details about personal loans connect with the financial experts of Money View.