A personal loan EMI calculator is one of the most essential research tools before you apply for a personal loan. It can even be said that it is the only tool that you need to go through to get a bird’s eye view about the specifics of your personal loan before you take it.
If you have never used such a calculator before or are looking for more information about it, continue reading…
What is an EMI Calculator?
An EMI calculator is an online tool that helps you understand the elements and numbers associated to a borrowing. To describe this better, let us take the help of an example.
Rohini is a marketing professional from Firozabad who wants to take an instant personal loan of INR 10,000 from Indiabulls Dhani. She chose Dhani because of its convenience and paperless transaction, along with the fact that there is no need to go to any physical branch for application or disbursement purposes. She wants the loan for a duration of 12 months and has finalized on an interest rate of 12%.
Even before she decides to take the loan, she wants to understand what her easy monthly instalment (EMI) will be. It is for this purpose that Rohini uses the personal loan EMI calculator.
Using a personal loan calculator, she can understand the monthly amount that she will have to pay in order to maintain the loan account. She will also get the details about the total amount payable at the end of the tenure as well as the total interest that she will have to pay in addition to the principal amount.
Knowing these numbers can help her prepare for the repayment of the personal loan. And that is why a personal loan EMI calculator is an important tool for borrowers.
How to Use a Personal Loan EMI Calculator?
As noted above, you have to submit the following details into the tool to get the required information. The critical elements are:
- Loan amount – total amount that you want to borrow
- Tenure – number of months (or years) that you will require to pay back and close the loan
- Rate of interest (ROI) – the percentage at which the interest will be calculated on the loan amount
Once you submit these details, the following elements will be generated:
- Total loan amount – total amount that you have to pay to close the loan
- EMI amount – monthly payable amount as part of the loan repayment timeline
- Total interest – total interest that you will have to pay
In other words, a personal loan EMI calculator shows you a bird’s eye view of your loan. It helps you plan ahead and decide if you need to change the numbers with respect to the total amount, rate of interest, and the tenure.
While the rate of interest is not in your hands, you can control the total amount and the tenure.
Such an EMI calculator is important for loans borrowed from Dhani app as well. You can have a better idea about your repayment process and plan accordingly. One of the benefits of the Dhani app is that it allows earning reward points and maintain an e-wallet, making it one of the most revolutionary personal finance apps in India.