Instant personal loans are a popular choice for people looking for instant cash to cover their expenses. These types of personal loans are offered by NBFCs, banks and online lenders providing a quick loan disbursement, digital KYC and online application process so that you can have a smooth and fast access to funds.
Instant personal loans provide comparatively smaller loan amounts with shorter repayment tenures as compared to regular personal loans. Hence, ultimately your EMI will be the most important factor to keep in mind while repaying your loan. This is where the EMI calculator comes into play. Let us understand how EMI calculator can help you calculate your EMI for your instant personal loan;
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What is an EMI?
An EMI is a regular monthly instalment that includes the principal amount of the loan and the interest on the amount based on the interest rate given to you. In the course of the repayment of the loan, the amount of interest paid declines while that of the principal amount gradually rises.
What is an instant personal loan EMI calculator
An instant personal loan EMI calculator is an online tool which helps you calculate your EMIs accurately and quickly. Since the loan tenures provided in instant personal loans is shorter as compared to other loans, the EMI amount becomes much higher. Hence, an EMI calculator lets you plan your repayment efficiently and provides you all the information in just one single tap.
Using an instant personal loan EMI calculator is quite simple and quick. All you need to enter is your principal amount, interest rate and loan tenure and you will be able to get a complete overview of your EMIs.
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How to use an instant personal loan EMI calculator?
Using an instant personal loan EMI calculator is extremely quick and convenient. Let us understand the step by step process:
Step 1:Enter the principal amount you wish to borrow for your instant personal loan.
Step 2:Enter the desired interest rate for the loan.
Step 3:Enter the loan repayment tenure you would like to repay the loan amount in.
Step 4: Press the enter button and you will get a detailed breakdown of your EMIs which you will be bound to repay throughout the tenure.
Tip:You can try different combinations of loan amount and interest rate along with the repayment tenure so that you can compare the offers provided to you by lenders and choose the best deal for you.
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Key advantages of using EMI calculator for instant personal loans
Quick and convenient:Instant personal loan EMI calculators are more efficient than manually calculating EMIs as it takes a lesser amount of time and provides instant and accurate results.
Error-free calculations:Such tools offer accurate calculations, thereby eliminating chances of errors which could have been a possibility in manual calculations.
Helps budgeting: It helps you get a complete idea of how much money you will be bound to pay every month and accordingly make a budget to repay the loan in time.
Compare loan options:With this calculator you will be able to compare the instant loans provided by various lenders and accordingly choose which suits you best.
Tips for managing your instant personal loan EMI efficiently
Choose a suitable tenure:Choose a loan repayment period which gives you an affordable EMI and also decreases the total amount to be paid as interest. This way you will be able to repay the amount comfortably without much financial burden. You can use an EMI calculator and compare different loan tenures.
Monitor interest rates: Having a healthy credit score can help you get lowest interest rates on your instant personal loan. Hence, make the best out of your credit score and aim to get the loan at your desired terms.
Plan your budget:It’s important that your monthly EMI payments do not exceed 30-40% of your total income so that it does not impact your credit score. This way you can also eliminate any unnecessary burden on your finances.
Make prepayments:It is better to make partial early payments to decrease the principal amount that you owed and ultimately avoid the interest charges on it. However, you must note that prepayment of loans may attract foreclosure charges as per lender’s policies.
In conclusion, it is essential that you calculate and plan your finances in order to repay your EMI on time so that you can avoid any defaults and keep your credit score healthy. Instant personal loans have become quite popular due its accessibility and quick application process.
However, before you decide to get the loan, it is important that you evaluate your need and decide whether you really require an instant personal loan as this particular loan attracts high interest rates for shorter repayment tenure. Hence, make informed decisions and avoid any future debt traps.
