personal loan calculator

Mastering Your Finances: The Power of Instant Personal Loans

In today’s fast-paced world, financial emergencies can strike when least expected. That’s where the concept of instant personal loan comes to the rescue. These loans offer a quick solution to address unforeseen financial needs, providing a lifeline in times of urgency.

What are Instant Personal Loans?

Instant personal loans, as the name suggests, are swift financial solutions that provide access to funds within a short span. They are designed to assist individuals in managing unexpected expenses such as medical bills, car repairs, or home improvements. The process is streamlined, often requiring minimal documentation and allowing for rapid approval.

The Role of a Personal Loan Calculator

Now, let’s talk about a personal loan calculator. What role does it play?

In order to truly harness the power of instant personal loans, understanding their implications is crucial. That is where a personal loan calculator comes into play. A personal loan calculator is a valuable tool that helps borrowers estimate their monthly repayments, interest amounts, and overall loan costs. By inputting the loan amount and tenure, borrowers can make informed decisions and choose a repayment plan that aligns with their financial capacity.

Advantages and Considerations

Instant personal loans offer numerous benefits, such as speedy access to funds, minimal paperwork, and flexibility in repayment. However, borrowers should exercise caution. Interest rates can vary, and it’s essential to use a personal loan calculator to comprehend the financial commitment fully.

Remember, mastering your finances involves not only accessing credit when needed, but also managing it prudently to secure your financial well-being.

Situations In Which You Can Take a Personal Loan

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Personal loans come in handy in multiple situations. As it is unsecured loan and collateral free, this is the reason for its popularity. Here are a few instances where taking quick personal loans might turn out to be beneficial: 

Medical emergencies 

If your medical insurance fails for some reason, or you don’t have money to pay for your or a loved one’s treatment, personal loans can come in handy. They are disbursed extremely quickly when taken from NBFCs, and it would be easy to pay off the EMIs over the next few months. Additionally, it also ensures that the people you care about get the medical treatment that they deserve. 

Holidays

Everyone has got a dream holiday destination they yearn to visit one day. This can be Nigeria, France, Spain, Singapore, or even Disney World! Taking a personal loan if you would be unable to pay for the vacation out-of-pocket would be a good choice. You can get funds up to 25 lakhs, and the EMI payment makes it easy to return the money after your travels. 

Business

If you have faith in a business idea and are confident that it will serve you well, don’t hesitate before taking a personal loan for it. This helps you finance this idea of yours in a relatively stress-free environment, focusing more on your work. When your business takes off, you can repay the loan at the earliest to avoid further expenditures on interest. 

Weddings

The potentially most important day in your life could be made magical by taking a personal loan for it. You can ensure that you have the products and services of the highest tier and make it a night that none of your guests would be able to forget. 

Have your personal loan documents handy– they can come to good use. 

Additional Read: How to Select Right Type of Personal Loan for Yourself?

Personal Loan Eligibility Calculator:A Glance

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Are you thinking of securing an instant personal loan online but don’t know if you are eligible for it? Then, a personal loan eligibility calculator can be a crucial tool that can help you ascertain your loan eligibility. Before applying for a personal loan, you have to ensure that you are qualified to get it without any rejections.

Personal loan eligibility is a pre-defined criterion that you need to satisfy before submitting the loan request. It is usually based on your personal as well as professional profile and differs from lender to lender.

What is a Personal Loan Eligibility Calculator?

A personal loan eligibility calculator is a simple-to-use online tool provided by every lender to estimate the loan amount you can acquire along with the monthly EMIs. The objective of this calculator is to help you avail the best PL according to your financial circumstances.

How is Personal Loan eligibility assessed?

Estimating your eligibility using the PL calculator is extremely easy. You need to enter your details, such as your town, age, monthly expenses, and income, and click on the ‘Apply’ option. After that, the calculator will showcase the exact value of the PL you will be able to secure.

Perks of Personal Loan Eligibility Calculator

  1. With the calculator’s help, you can get an idea of the amount that you can obtain. This way, you can easily schedule your repayments.
  2. These calculators are available on every lender’s website, and you can access them from your laptop or smartphone as well.

In a nutshell, you can try the PL eligibility calculator from anywhere, and take up the loan as per your eligibility.

Reference Read: Need to Understanding EMI And Personal Loan Calculators

 

Important Facts About Small Personal Loans

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At some point in our life, we might experience a small financial crunch that can disturb our monthly budget. So, to get through this situation with ease, we require a small amount to meet urgent needs. That is when small personal loans come into the picture. 

What are small personal loans? 

As the name suggests, a small personal loan is a kind of short-term loan that lenders provide to cover instant financial expenses, such as working capital requirements, purchasing an electronic device, etc. These loans are availed when you need a small amount of funds, ranging from Rs. 15,00*0 to Rs.1,00,000. Small PL is usually sanctioned for a maximum period of 12 months. However, the minimum and maximum loan amount duration vary from lender to lender. Further, these loans are offered to entrepreneurs to fulfill their capital needs as well as to the salaried and self-employed professionals to finance their daily expenses. 

How to apply for a small PL? 

Since the market fills up with multiple lenders, the loan application procedure may be different for all. However, the borrower must follow the below necessary steps to secure such loans. 

  1. Shortlist a suitable lender and fill a digital form provided on the website. 
  2. Try the personal loan interest calculator to assess how much interest you have to pay each month. 
  3. Upload all the essential documents related to your personal and professional profile. 
  4. After the submission, the lender reviews the application.
  5. Once verified, the loan amount is instantly deposited into your account within a couple of minutes.

Final Thoughts 

A small personal loan is an easy and prompt way of raising funds. Its unsecured nature and other countless benefits make it the favorite tool for both businessmen and employees.

Additional Read: Reasons why you should choose personal loan instead of credit card

 

What is Personal Loan EMI Calculator & How to Use it?

Whenever you apply for a loan from any financial institution you have to pay the loan in the form of EMI ( Equated Monthly Installment) which may be a monthly or yearly basis. It is a monthly installment amount that you have to pay until your loan is repaid fully. Personal Loan EMI Calculator is a tool used to calculate the EMI amount of the loan.
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Before applying for a personal loan you should know how much EMI amount you will have to pay for the loan. There are 2 methods by which you can calculate EMI:-

1. By manually with mathematical formula- EMI is calculated through these factors- Principal Amount, tenure and rate of interest. The mathematical formula used for this calculation is:
                 EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
here,
P is the stands for the principal amount,
R is for the applicable rate of interest, and
N is for the loan duration.

2. Personal Loan EMI calculator- You can calculate EMI by using a Personal Loan calculator, an online tool to calculate the EMI amount. Use of online calculators fewer chances of errors. It is fast and it is easy to use. It saves your time and gives an accurate result. The tool is available on the lenders’ official website. You only need to fill the details of the principal amount ( loan amount), Interest Rate, Tenure and submit it. It will show your EMI amount.

Additional Read: How Is Personal Loan EMI Calculated in India?

Use Personal Loan Calculator to Calculate Your EMI

While home loans and car loans are to be used for specific purposes, personal loans can be used for any reason. The choice is up to the borrower. It could be a wedding ,a vacation, home renovation, etc. In addition, getting a Personal Loan issued is hassle-free and quick. The Personal Loan, like all other loans, are repaid back using EMI. Equated monthly instalments depend on three key factors (i.e.) Principal, Interest Rate and Tenure. The principal is the amount of money required to be borrowed. Rate of interest is charged annually. Hence it is to advice to calculate the EMI with personal loan calculator an online tool to calculate the monthly EMI.

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Tenure is the duration for which the EMI is to be paid in order to repay the loan. Understanding these three factors helps increase awareness among borrowers. They can calculate persona loan EMI in advance and determine the amount to borrow so that they can plan their finances accordingly.

Personal loan calculator are convenient and easy tool to calculate the payble EMI. It requires the following details:

1. Loan Amount
2. Loan Tenure
3. Interest Rate

Must Read: How Is Personal Loan EMI Calculated in India?

What is Personal Loan Calculator & How is Interest Calculated?

When you apply for a personal loan, the monthly instalment amount that you will be paying becomes a key factor in deciding the loan amount and tenure. You can either use a personal loan EMI calculator or the below formula to calculate your pay-outs. This helps you in planning the loan amount and repayment schedule better.
Ideally, the interest rate on a personal loan is calculated by considering several factors. Your credit history, monthly income, the amount being borrowed are a few among them.

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Factors Affecting the Personal Loan EMI

The following are the factors that affect your loan EMI.

  • Loan Amount:  The higher the loan amount, the higher the EMI payable. The maximum loan amount you can avail is decided by the lender based on your repayment capacity, relationship with the bank, and other factors.
  • Rate of Interest: The rate of interest is also directly proportional to your EMI. Your loan’s interest rate is based on several factors, such as your income, your credit history, repayment capacity, etc.
  • Loan Tenure: The loan tenure is inversely proportional to your EMI. The longer the tenure, the lower the EMI.

Calculating the Personal Loan EMI

Have a look at the below method that explains how you can calculate the interest amount on the total loan amount.

The interest amount is not the same for each month. The interest amount is higher at the beginning, which reduces gradually in the following months.

Calculate Interest for the First Month

  1. Convert your annual interest rate into a monthly interest rate. To do this, you will need to divide the annual interest rate by 12, i.e. if the interest rate is 20% per annum, then divide 20/12, which yields 1.66%. This is your monthly interest rate.
  2. Multiply the interest rate with the total personal loan amount, i.e. if you are taking a personal loan for 30000 at a monthly interest rate of 1.66%, then [(1.66/100)*30000 = 498] is the interest amount for the first month.
  3. Calculate the total

Calculate Interest for the Following Months

Since, you have started to pay off your principal, use the below calculation to find out the interest amount for the following months. 

  1. Subtract the interest amount of the first month from the amount you repaid. This gives you the amount that you have paid against the total personal loan principal.
  2. Now, subtract this amount from the original principal to find the new balance of your loan.

          New balance = principal – (EMI – interest) 

Additional Read: How We Can Get Instant Personal Loan Online?