A personal loan calculator is a calculator that allows for calculating EMIs (equated monthly installments). The borrower has to pay this calculated EMI every month until the loan is fully paid.
The interest rate, tenure, and personal loan amount are used to calculate EMI. On entering interest rate, personal loan amount, and duration, the calculator gives the results by telling about the EMI the borrower has to pay. Personal Loans NZ is a platform which you can use for information and tips on loans.
How to Use a Personal Loan Calculator?
To get EMI, you have to enter:
- Interest rates which should be between 1 to 50 percent mostly
- The loan amount, which can vary from Rs 50,000 and Rs 30 lakh usually
- The tenure which should be between 1 year and 5 years most of the times
The interest rate may differ according to lenders because different lenders offer loans to people at different interest rates. To arrive at the interest rate, input that rate into the calculator at which your loan provider is providing you the loan.
What Details Does the Calculator Show:
You will get at least three details after using the calculator:
The EMI (equated monthly installments): It is the exact amount you will have to pay every month until the loan is paid fully.
Total Interest Paid: The calculator will tell you about the total interest you will pay throughout returning the loan. Borrowers with higher credit scores usually have to pay less interest than those who have overall poor credit.
Total Amount: Finally, the calculator will tell you about the total amount you owe to the lender. This amount includes the original amount you borrow and the interest rate. It does not include any extra fees that sometimes lenders charge.
What Benefits of a Personal Loan Calculator Provides?
Following are the advantages of using a personal loan calculator.
Tenure of the Loan and EMI
The calculator allows you to calculate equated monthly installments and the exact tenure of the loan. That is why you can determine the correct value of EMIs as well as the number of EMIs you will have to pay depending on the timespan of the loan.
Interest Rate of the Loan
The most significant benefit of the personal loan calculator is that it tells about the interest rate you will require to pay to the loan provider. The interest rate is based on many different factors, so you can change the numbers and select the most suitable rate.
Loan Eligibility
As the calculator asks for a lot of information (your credit rating, income, etc.) to give you the exact value, it will also let you know whether you fulfill the loan’s eligibility criteria or not. When you already find out about your eligibility for the loan, you will also be saving your time.
Financial Planning
Receiving all the details related to a loan before you apply will assist you in managing your budget better. Therefore, for this purpose, a personal loan calculator will help you reduce expenses and determine the value for the loan period.
Where to Take a Personal Loan?
Generally, you have three options for taking personal loans:
1. Online Lender
It is undeniable that the online personal loan market has become very competitive. Online loan providers offer benefits like low/no fees, competitive rates, and flexible payment options to attract customers.
2. Credit Unions
Credit Unions provide financial services to people who study, live, worship, or work in the community. But to avail of a loan from credit unions, you have to become a member. You might also require to possess a small savings account balance. Credit unions offer attractive rates despite all these factors and are more likely to work with borrowers who have thin credit histories and minimum credit scores.
3. Banks
Banks usually have tougher lending requirements and higher interest rates than credit unions. But there are not any membership issues. Fortunately, you get lower rates and have more chances of qualifying for bigger loans if you are already a customer at a bank, particularly a local bank.
