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Why Should You Calculate your EMI Before Applying For a Personal Loan?

Posted August 10, 2017 by Richa Sharma to Finance 0 0
This post was written by a EasyFinance.com Community member. The views expressed below may not reflect the views of EasyFinance.com.

As we all know, you cannot predict emergencies, especially if they are financial. At such times, arranging a lot of funds in a short duration can really get difficult. There are many financial institutions that can help you in such situations, by providing you with loans.

For some households, taking a loan can be a very important financial decision, as it can affect their finances for a long time to come. When it comes to loans, personal loans are the most preferred option these days. As personal loans are easy to manage if planned well, many households don’t face a huge shift in their financial planning. Instead of borrowing funds from friends or relatives, opting for a personal loan from a financial institution is always more convenient.

While talking about personal loans, applying for it is easy, which is one of the benefits of personal loans. One can easily apply for a personal loan by going on the lender's website and applying for the loan online. Applying for the loan online will save you a lot of time and the application process is completed faster. But, before applying for a loan, there are some important things you should keep in mind.

Interest Rate:

The interest rate is the most important factor when it comes to loans. Undoubtedly, the interest rate that you pay decides your debt. It is significant that you compare personal loan interest rates before opting for a lender. As interest rates offered by different financial institutions vary, you might find a lender charging you with a high interest rate, whereas other lenders might charge you with a low interest rate on the same amount. To know the accurate interest amount that you will be paying, it is essential that you calculate your interest before paying it.

When it comes to personal loan Online EMI calculator, there are two things that determine your interest amount: the loan amount and the loan tenor.

● Loan Amount: You cannot determine the exact amount you will require during an emergency. Depending upon the amount that you borrow, the lender will charge you with an interest amount.

● Tenor: Tenor also plays an important role when EMI is considered. The EMI that you have to pay depends on the tenor of your personal loan. You can either go for a short-term loan tenor or you can opt for a long-term loan tenor, depending on your loan repayment capacity.

Personal Loan EMI calculator:

Calculating your personal loan EMI is not that difficult. Many lenders provide online EMI calculators on their websites, which help applicants to calculate the EMI before applying for a personal loan. Before calculating your personal loan EMI, it is essential that you calculate it only on the website of the lender that you are opting for. As interest rates offered by different lenders differ, calculating it on the lender’s website will give you a close estimate of the interest that you will be paying. The online EMI calculator will ask you about the loan amount and the tenor that you will be availing. After entering these, you will get an estimated interest amount that you will be paying in future.

It is essential that you calculate your Loan Eligibility or EMI before applying for a loan, as this will ensure you are able to plan for repayment properly.

About Richa Sharma: Richa is a financial consultant and writer for https://www.bajajfinserv.in/finance/. He helps people to select the right program to settle their debt issues. He also gives advices on problems related to finances.

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