A personal loan is a type of unsecured open-ended loan that is usually taken by an individual for a short time period. It mostly helps cover financial expenses like family expenditure, residential renovation, vacation, or procurement of some personal amenities. It is preferred over other loans like home loans, car loans, gold loans, etc. because it requires minimal documents and has the flexibility of usage.
A personal loan EMI calculator is a simple and user-friendly solution to pre-plan and manage your influx and efflux of money so that you possess an optimal amount of money at any given point of time. A personal loan EMI calculatoris a convenient accessory, a formula box with 3 sliders- loan amount, loan tenure, and interest rate. A user is required to fill in the details in the fields. The personal loan EMI calculator will then redirect us to the amount we need to pay each month to the bank.
There are many advantages of a personal loan EMI calculator. Source: Paidfreedroid.com
EMI calculations are normally quite complex. This brings in the need for online EMI calculators which makes financial management easy. An online EMI calculator uses the formula EMI Amount = [P x R x (1+R)^N]/[(1+R)^N-1] where P, R, and N are variables.
There are numerous advantages of using an online EMI calculator enumerated as follows:
1. Easy calculations:
A lot many people avoid financial planning since it involves complicated and time-consuming calculations. With the advent of a personal loan EMI calculator,all your financial worries can be kept at bay when it comes to calculations. Such calculators contain inbuilt formulas for computing correct EMIs for different types of loans and data.
2. Graphical representation of data:
The human mind is more receptive to a graphical representation of data and can grasp it with relatively more ease than literal data. The graphical representation of loan and EMI formulated by a personal loan EMI calculatorgives one an all-encompassing view of information at a glance. Such easy graphs and data tables are a boon for anyone struggling with financial jargon.
3. Retirement planning:
Retirement planning tops the list of all financial planning goals. This type of future planning differs from other goals since it encapsulates many other factors such as current expenditure, time left till retirement, rate of inflation, life expectancy, and expected rate of return after retirement. Such a tedious job requires proper estimations and calculations, the kind that is cumbersome for the human mind to do manually. An EMI calculator is the best alternative in such situations.
4. Business finance planning:
A persisting problem for businesses is that liquidity of assets keeps on fluctuating depending on market factors. A personal loan EMI calculatoris a handy accessory if your asset purchases depend on this liquidity; such an accessory helps to calculate the accurate repayment figures and methods. An EMI calculator also helps to plan expensive asset splurge like equipment, machinery, etc.
5. Loan specific:
The best thing about loan EMI calculators is that they are loan specific, and can change to accommodate different loan types along with their prerequisite formula settings to fulfil different requirements. So if you intend to plan different investments, you have it at the tip of your fingers.
6. Convenience and choosing the right lender:
Why procrastinate your financial planning and calculations for another day when you can easily make use of online EMI calculators? With a user-friendly interface, these calculators require just the necessary details and boom, all the details about your tenure is rolled out to you at a minimal expense of time.
Also, financial planning calls for approaches by different lenders offering different interest rates. An EMI calculator makes the process of tracking down to the right lender much easy.
EMI calculations involve a lot of variables and their correct usage to reach the correct result. Unless you are from a financial background, there are chances that you may falter at a given step. A personal loan EMI calculatorgives us a comprehensive amortization chart for our reference which ensures the accuracy of financial calculations.
Thus, a loan EMI calculator helps us make sound financial decisions that are essential for planning our finances for a better lifestyle. With its myriad uses, the personal loan EMI calculator is one of the most valuable tools concerning a personal loan. accuracy, customizable data, and user-friendly interface are the main facets that are contributing to the ever-increasing popularity of such online calculators, especially amongst millennials. Repayment schedules that shift undue strain on your finances are essential and are guaranteed by such an EMI calculator. EMI calculators also take into account the processing fee chargeable by the bank and give us prior information on the EMI amount including that fee. Having the right figures in mind, a borrower can assess his ability of repayment and can choose the amortization period accordingly. With proper planning and budgeting, the chances of hitting a financial crunch in futures diminish to zero.