Personal loans are easily availed by many individuals to meet their financial needs. It has also become easier to avail a personal loan in the current times. One of the most popular features of a personal loan is that a large loan amount can be availed in a short period of time. While a personal loan brings plenty of convenience to the table, it is always best to avail of a personal loan only once you have analyzed your financial needs or requirements.
Benefits of Calculating EMI
It is considered a best practice to calculate the EMI before availing of a personal loan. It can avoid debt traps and help you plan your finances responsibly. You can use the personal loan EMI calculator to calculate the EMI. If the calculated EMI seems out of your budget, you could go ahead with the following 2 methods.
Adjust the Principal Amount
If the calculated EMI is out of your budget, you could go ahead and adjust the principal of your personal loan. By decreasing the principal amount, the EMI decreases as well, thereby making it more affordable.
Extend the Tenure
Another method to make your EMI more affordable is to extend the tenure of your personal loan. This gives you more time to repay your loan and also decreases the amount you have to pay as EMI.
How to Calculate Personal Loan EMI?
You can easily calculate personal loan EMI by using the EMI calculator. Follow these 4 steps to calculate the EMI.
Step 1: Navigate to the EMI calculator page on Finserv MARKETS.
Step 2: Enter the amount of capital you plan to acquire through your personal loan.
Step 3: Decide the tenure during which you can comfortably repay the loan depending on your financial capabilities. You can enter the tenure in months or years.
Step 4: Finally, enter the rate of interest of the personal loan.
Once you fill in all of these details, the EMI calculator then calculates your EMI and displays the amount you have to pay on a monthly basis as EMI. The principal amount, total interest, and the total payable amount will also be displayed. By gaining an understanding of the EMI you have to pay, you can plan your finances accordingly and stay financially responsible.
For instance, consider that you would like to avail a personal loan of Rs. 3 Lakhs at an interest rate of 13% per annum. You play to repay this personal loan over a duration of 4 years. When you enter all of these details into the personal loan EMI calculator, the calculated monthly EMI would be Rs. 8,048. This way, you can plan in advance to set aside Rs. 8,048 on a monthly basis to avoid any lapse in your personal loan repayment.
In a Nutshell
Calculating your personal loan EMI beforehand can help your plan your finances accordingly. It can also help mitigate the financial burdens and stay financially responsible. You can avail of a personal loan through Finserv MARKETS and experience benefits such as an easy application process and minimal documentation.