2 Common Financial Calculators You Can Use - Loan Trivia

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Friday, 24 January 2020

2 Common Financial Calculators You Can Use

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Before you commit to a financial approach, a calculation is vital. Otherwise, you may end up with a burden higher than you wanted. Whether it is investing a certain sum of money or availing a loan, prior calculations can help you determine the correct amount, tenor and rate of interest.

Types of financial calculators 

You must take financial decisions solely after performing the necessary calculations with one of the following tools.
# Personal loan calculator.
# SIP calculator.

Personal loan EMI calculator 

A personal loan is often a perfect choice of credit when it comes to funding financial emergencies. While easy to avail, such loans are offered at competitive interest rates. Therefore, you must carefully assess the loan quantum, tenor and all other aspects of the said credit before applying.


Factors that affect personal loan calculations 

Several factors need to be taken into consideration when you want to know your monthly EMI for the said loan. These factors include –

- Loan amount – The amount of funds you are looking to borrow is the first vital aspect you must know to use a personal loan calculator. Keep in mind that lesser the loan value, lower are the EMIs.

- Tenor – Tenor refers to the loan repayment period. Most lenders offer loan tenor of up to 60 months on personal loans. While longer tenor is desirable if you are trying to keep EMIs low, a lengthier repayment period also significantly increases your total interest burden for the said loan.

- Rate of interest – Interest rates tend to differ between the various lenders in India. Know the interest rates on offer from your preferred lender and use a personal loan calculator to calculate the EMI amount.

After entering the 3 parameters mentioned above, you can simply click on the calculate button to acquire a detailed result regarding your monthly EMIs. Some calculators also display the total cost of your loan, combining the principal sum and the total interest payable. This is the simplest way to use a personal loan calculator.

Benefits of using personal loan calculators 

Choosing a suitable loan amount – Often, prospective borrowers are offered a substantial loan amount. However, that does not mean they should avail as much as on offer. Using the calculator helps you decide exactly how much you can afford to avail at present without overburdening your finances.

Comparing the various personal loan options – Indians have a wide range of options to choose from when it comes to personal loans. Several reputed institutions provide these forms of credit and using a calculator allows you to quickly compare the various interest rates and loan offerings to pick the most suitable one.

Picking the right repayment tenor – The repayment period is a vital part of any personal loan. Based on your financial stability, you need to choose the perfect repayment period for your loan. Those who have greater earnings can choose shorter tenors with higher EMIs to become debt-free sooner. On the other hand, individuals with limited income can avail personal loans with longer tenors to reduce the EMIs.

Focus on how to best use a loan EMI calculator before you apply for instant personal loan. Make sure you compare between loan offerings from the most reputed financing companies in India.

For instance, Bajaj Finserv provides pre-approved offers to make availing such loans quicker and faster. These offers are available on a range of secured and unsecured financial products, including credit cards, business loans, home loans, loans against property, and more. You can check your pre-approved offers by providing your name and phone number.

EMI calculators are indispensable tools when availing loans. Never opt for credit without checking on these calculators first.

 

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