Personal Loans have become increasingly popular over the years, thanks to the fact that this Loan enables individuals to quickly and conveniently generate funds to tackle various needs. These requirements might include multiple personal and professional expenses, medical emergencies, etc.
What are Personal Loans?
A Personal Loan is an unsecured credit facility that lets you meet your financial obligations. This Loan comes with several benefits. These include the following:
- Since this Loan is unsecured, you need not provide collateral to secure a Personal Loan. There is also no need for a guarantor or co-applicant.
- You can choose from flexible repayment tenures.
- This Loan requires minimal documentation.
- Financial institutions offer these Loans without any restrictions on end-use. Hence, you can use them for various needs. For example, you can use this Loan to renovate your home, pursue higher education, pay for a wedding, etc.
- Today, you can apply for this Loan using your smartphone and a stable internet connection. Just download the Banking app of your financial institution and complete the necessary steps to avail of a Personal Loan online.
As with other financial decisions, you should apply for a Personal Loan only after thoroughly evaluating all the necessary details. These particulars include understanding the available Loan tenures, your repayment capacity, interest rates, etc. It is also essential to determine your Loan EMI before applying for a Loan. This knowledge ensures the monthly instalment fits conveniently within your budget without infringing on your current wants and needs.
How to calculate EMI?
Manual EMI calculations can be time-consuming and leads to errors. This is when an online Personal Loan EMI calculator comes as a boon. It is a simple tool that computes your loan interest and lets you quickly assess your monthly EMIs. Additionally, the calculator is freely available and can be used from anywhere and at any time. To use this online tool and calculate the EMI, follow these basic steps:
- Enter the Loan amount or principal sum you wish to apply for
- Input the interest rate offered by the bank
- Choose the Loan tenure you want to avail
As soon as you enter the details, the EMI calculator automatically calculates the total interest and monthly EMIs. You can also use the same calculator to try various permutations and combinations of the values to arrive at a monthly instalment that fits comfortably within your budget. This step will enable you to decide the amount you can borrow, the lender you should choose, and the tenure you pick when applying for quick Personal Loans.
Factors that impact EMIs
The Personal Loan EMI typically depends on the following factors:
- The interest rate offered by banks
- The Loan amount you want to borrow
- The Loan tenure
Lenders also consider your age, CIBIL scores, etc., to determine your maximum Loan amount and interest rates.