Thanks to the fintech innovations, now anyone can easily avail a loan. Without going through a rigorous process, anyone can apply for a digital loan with a paperless application and receive it within a few hours. Earlier, a limited range of financial products like house loans was available on EMI. However, the banking scenario has changed significantly, and many types of loans are offered on EMI.
The current era is an EMI era. Whenever somebody talks about borrowing or loans, the first thing which crosses their minds is EMI. It stands for “Equated Monthly Installment”, often abbreviated as EMI. The online EMI calculator for personal loan is a more effortless and accessible option for calculating EMI on your loans. On the online EMI calculator, you will find three variables, each with a slider for changing the values. The variables will be Loan amount, Interest rate and tenure of the loan. You have to adjust the slider, to change the values, and you can find the ideal loan amount and tenure for yourself. Moreover, you can search for the best personal loan interest rate on the Internet to find the ideal loan for yourself.
What is EMI?
An Equated Monthly Installment or EMI can be described as a sum of money that the borrower pays every month to repay the borrowed amount on a particular date of each month. The loan amount, along with interest, is equally divided over a period of time, called the loan tenure. The total number of months and the total number of EMIs are equal.
A personal loan is one of the most availed financial products across the country. A personal loan can be taken for many reasons, and in this digital world, anyone can avail personal loan directly from their home within a few hours. But before applying for a personal loan, one should have a basic idea about how loan repayment works and how the market functions. By having a basic idea about the loans, one can choose the best loan offer for themselves and calculate the ideal amount and tenure for their loan amount.
Personal Loan EMI Dependents Factor
Generally, the EMI calculations in any loan rely upon three things- the loan amount, tenure and rate of interest (RoI). The borrower decides the loan amount and tenure. However, the rate of interest on the loan is determined by the bank and may vary from one financial institution to another.
How To Calculate EMI
There is a mathematical formula for calculating the personal loan in Microsoft Excel. This is a long and rigorous procedure, where the variables are-
- PMT stands for EMI
- PV is the principal amount of the loan
- Rate is the rate of Interest/12
- NPER is the number of payments for the loan
For calculating the EMI, the formula is PMT(Rate, NPER, PV)
You can change the numbers and try the formula mentioned above with different combinations to get your ideal EMI. However, you can try an emi calculator for personal loan rather than following this tiresome procedure.
Why use Online EMI Loan Calculator?
Many readers will assume why they must use the online emi calculator for personal loans. Well, there are many reasons behind using them-
- The online emi calculator for personal loan is a more uncomplicated and free-of-cost option. You don’t have to pay anything to use them. Moreover, you can calculate loans easily with an online calculator rather than indulging yourself in a rigorous calculation procedure.
- By altering the numbers in the calculator, you’ll end up with various loan amounts. After doing several calculations, you’ll be able to find the ideal loan amount, which can be aligned with your financial capabilities.
- By using the emi calculator for personal loan, you will get accurate results of the combinations you have entered on the calculator. With accurate results in your hand, you’ll become more efficient in decision-making for the loan amount and the tenure.
Why use Online EMI Loan Calculator?
Many readers will assume why they must use the online emi calculator for personal loans. Well, there are many reasons behind using them-
- The online emi calculator for personal loan is a more uncomplicated and free-of-cost option. You don’t have to pay anything to use them. Moreover, you can calculate loans easily with an online calculator rather than indulging yourself in a rigorous calculation procedure.
- By altering the numbers in the calculator, you’ll end up with various loan amounts. After doing several calculations, you’ll be able to find the ideal loan amount, which can be aligned with your financial capabilities.
- By using the emi calculator for personal loan, you will get accurate results of the combinations you have entered on the calculator. With accurate results in your hand, you’ll become more efficient in decision-making for the loan amount and the tenure.
Conclusion
Before availing or applying for a personal loan interest rate, it is essential to check for a personal loan. Moreover, users can smartly compare the EMIs of different financial institutions by comparing them on an emi calculator for personal loans. Just input the variables, and it will show accurate results based on the combinations.