Important Factors to Keep in Mind While Using a Personal Loan Calculator

The Factors You Need to Consider While Using a Personal Loan calculator

Among the various financing alternates available for borrowing personal loans, today several options can be easily administered with an online personal loan calculator. A personal online loan calculator is a tailored financial tool that borrowers can make use of to make the learned financial decision depending on their needs and capabilities. 

Beneficial offers are extended by reputed NBFCs. However, the borrower has to decide the loan amount after bearing in mind certain factors. Depending on the information entered, the online personal loan calculator calculates an approximate estimation of the loan amount one is eligible for. 

Personal loan interest rate calculation

The lender calculates the personal loan interest rate based on your credit profile, loan amount, and tenor. Once you are made known the interest rate of the desired loan amount, you can use the online Personal Loan Calculator to find out the monthly installments you need to pay and ensure timely repayments.

Benefits of the Personal Loan calculator

• •  NBFC Personal Loan Calculator extends the following benefits to the borrowers:
• •  speedy EMI calculation
• •  lessen the chances of error
• •  evaluation of an  appropriate repayment schedule 
• •  help to select a suitable loan amount that  does not affect the borrower’s financial health
• •  You can alter the EMI to meet your repayment ability as well. Increasing or decreasing the tenor in the respective fields of the EMI Calculator.

A Personal online Loan Calculator even shows the principal and the interest amounts separately, while working out the EMI. NBFC Personal Loan calculators are the financial tools that help the customers to make borrowing decisions on the loan amount and tenor that suits their repayment affordability.

Factors to be considered while using a Personal Loan calculator

High-interest rates and EMIs burden the borrowers, it would be better if they can plan their finances and their EMI repayment suitably. A borrower’s loan eligibility depends on factors, such as monthly income, age, ongoing EMIs, place of residence loan, tenor, and interest rate. As the personal loan app is a user-friendly interface, working out the EMI is easy and well-situated.

By entering the following details onto the calculator, prospective borrowers get to know the maximum personal loan they can apply for. 

• •  Loan amount –The higher the loan taken, the higher will be the EMIs. The loan monthly installment is directly proportional to the availed loan amount.
• •  Rate of interest – The interest rate charged by the lenders is shown as a per cent of the loan taken. 
• •  Tenor – It is the duration of the repayment of the loan to be paid back.

To check your eligibility with a NBFC personal loan calculator 

• •  Open the personal  loan eligibility calculator
• •  Enter the details asked for
• •  Submit the information
• •  The calculator will display an amount that you are eligible for
• •  Apply for the displayed amount 
• •  Wait for quick loan approval

Read Also: Know How To Calculate EMIs Online For a Personal Loan

Here are some tips to improve your loan eligibility 

Debt-earnings ratio

Clear your existing personal loan dues and credit card bills to make the repayment process effortless. A loan borrower must ensure that the money borrowed is not lesser than his monthly income to a certain percentage. 

Additional income

Include supplementary sources of income such as rent, dividends, interest etc., these additional incomes will improve your eligibility while applying for a higher loan amount.  

Maintain a healthy credit score

Ensure that you’re CIBIL score is above 750 as the lenders normally consider borrowers’ credit reports and check their credit scores. 

Check additional charges

It is vital to check the additional charges that the lender would be levying, such as penalty charges, part prepayment, foreclosure, etc, before agreeing to the loan. 

Conclusion

By using an online personal loan calculator, borrowers can ensure hassle-free financing and availing of an NBFC personal loan. You can negotiate with the lender for a low interest personal loan based on your CIBIL rating. The pre-approved offers can be checked online by mentioning your essential credentials. 

Eligible borrowers can avail the pre-approved offers extended by NBFC's loan. Reputed lending institutions make the loaning process easier and quicker by extending pre-approved offers.

Read Also: Tips, Importance, And Advantage Of Using Personal Loan Eligibility Calculator