Financial planning is an important aspect of your life, especially when you have several expenses such as utility bills or rent to pay. However, unexpected situations can’t always be planned, and you may need additional funds. Here, it may be wise to consider alternate financing solutions like a personal loan. This instrument is a great option when dealing with a financial crisis as you can get easy funds without needing to pledge any assets. What’s more, it can even come in handy if you need to consolidate your payments efficiently and cost-effectively. But, when borrowing, you must plan to avoid issues, and you can do so with a personal loan EMI calculator.
Read on to know how an EMI calculator can help you optimise your loan to manage your finances better.
Gives you a clear and accurate understanding of your monthly outgo
When you have to pay multiple EMIs or credit bills, tracking them can become a stressful task. This can cause errors, which can be costly if you incur a penalty. A better way to manage multiple pending payments is to consolidate them. A personal loan can be a smart choice because it will allow you to repay your current dues in full and make just one payment every month. To make this undertaking a lot more favourable, use a Personal Loan EMI calculator to get a detailed breakup of your EMIs. It allows you to understand your monthly outflow and plan better accordingly.
An EMI calculator also grants access to the amortisation schedule, which helps you know the key details of your loan repayment timeline. The schedule will have the balance principal and interest payable details after each EMI. This information can come in handy when budgeting and looking to make a partial-prepayment. You can check this data to identify the best time to prepay and save on interest.
Helps you find the most affordable route when managing your loan
One factor that affects your EMIs is the personal loan interest rate. It dictates the cost of borrowing, and it varies with each lender. The higher the interest rate, the higher is the cost of borrowing. Similarly, your EMI is also affected by your loan amount and loan tenor. An EMI calculator or personal loan interest calculator will allow you to calculate your EMIs based on these factors.
As such, you can tweak the values and adjust them until you find the most affordable loan terms for your profile. By exploring the different EMI options based on the tenor or interest payable, you will be in a better position to borrow efficiently.
Offers insight on a suitable loan tenor for your budget
As mentioned above, your EMI amount is affected by your loan tenor. With a personal loan EMI calculator, you can calculate your outgo for different loan tenor options. If you want affordable EMIs, opt for a longer tenor. Do note that doing so also increases your interest outgo. Alternatively, if you want to save on interest, choose a short tenor. Here, the EMI amount is higher, so only if you can manage the payments easily.
A suitable loan tenor gives you the financial breathing room needed to manage payments with ease. To understand which tenor is best for your personal loan, apply different periods in an EMI calculator.
Proper planning of your personal loan EMIs will minimise the chances of defaulting on your loan. With the right lender, you may also get perks to help make repayment a breeze. One smart option to consider is the Bajaj Finserv Personal Loan. With it, you get a flexible tenor and a competitive personal loan interest rate to keep costs in check all through. There are no hidden charges whatsoever, and Bajaj Finserv maintains complete transparency with all loan dealings. This way, you don’t have to worry about additional charges at all.
You also get a suite of digital facilities, including an intuitive personal loan EMI calculator to plan your EMIs easily. The provision is easy to use, offers accurate results every time, and is free. To get funding up to Rs.25 lakh in an instant, check your pre-approved offer online by simply entering basic personal details.