As a collateral-free and restriction-free financing solution, you can use a personal loan to meet a variety of financial needs, be it a medical emergency or consolidating high-interest debts. Today, availing a personal loan has become easier than ever with many lenders offering an online personal loan to borrowers on meeting simple eligibility criteria.
However, Bajaj Finserv’s Instant Personal Loan combines convenience and speed with pre-approved offers for eligible customers. This instant online personal loan entails zero paperwork, so you don’t need to check eligibility criteria or submit any documents. With a 100% digital process, you can get money in your bank account in just 20 minutes in 2 clicks!
However, even as getting a personal loan has become hassle-free and quick, what you need to do is thoroughly evaluate your repayment capability before you opt for one. This will help you repay the loan on time and even boost your credit score. All you need to do is calculate loan EMI beforehand using the online personal loan calculator. Read on to know how and why.
What is a personal loan EMI calculator and how does it work?
A personal loan EMI calculator is an online tool that you can use to compute your loan EMIs. All you need to do is enter your preferred loan amount, repayment tenor and the lender’s rate of interest to get instant results. The personal Loan EMI Calculator from Bajaj Finserv allows you to enter the details manually or use the slider to adjust the values.
It uses the following formula to calculate your personal loan EMIs:
E = P * r * (1+r) ^n / ((1+r) ^n-1)
E refers to the EMI
P refers to the principal amount or loan amount you borrow
r is the rate of interest applied to your loan, which is calculated monthly
n is the repayment duration or tenor
When you calculate loan EMI, remember that if you wish to repay the loan amount over a longer tenor, then your EMIs will be smaller but the total interest you pay will be higher. This is because the interest is applied over a longer duration. Similarly, a shorter tenor will mean higher EMIs, but a lower rate of interest, which means you can save more. Using the online personal loan calculator, you can adjust and change the figures until you arrive at the ideal EMI that suits your income and budget.
How does the online personal loan calculator help in effective financial planning?
Simple and easy to use
The online personal loan calculator is a simple tool that does not take much of your time or effort while providing you with the results in a split second! It also negates the need for doing manual calculations using the complex formula or using the Excel calculation method, both of which are prone to human errors. Since this tool is available to your 24/7 online, you can use it anytime and anywhere to compute your EMIs and plan repayment easily.
Accurate results with a visual depiction
As opposed to calculating EMIs manually, using an online personal loan calculator helps you generate precise results every time based on the correct formula. This helps you avoid any errors in calculation that have the potential to mess up your financial planning or stress your budget during repayment.
Further, a few EMI calculators like the Bajaj Finserv Personal Loan EMI Calculator offer a pictorial representation in form of a pie chart showing you the percentage of the total interest you pay against the principal you borrow. This helps you understand your interest outgo better. What’s more, this calculator also shows you a glimpse of your EMI repayment schedule with a calendar that you can use. All this helps you understand the cost of the loan as well as what your repayment timetable could look like.
Helps determine your repayment capability
Since an online personal loan calculator helps you get accurate results for various combinations of the principal amount and tenor, you can plan your EMIs better. Based on your income as well as fixed and variable expenses, you can choose the right EMI for yourself by adjusting the tenor or the principal amount. This way, you can choose the right loan amount from the get-go or plan for repayment in a timeline that suits you. This customisation is key to better financial management.
Aids in choosing the most affordable lender
Apart from the principal and the tenor, your EMIs are dependent on the rate of interest offered by lenders. Using an online personal loan calculator, you can easily determine how even a small reduction in interest can help you save thousands. This way, you can also choose the right lender offering the lowest rate of interest. However, do not forget to make note of other loan features and value-added services before choosing a lender.
Now that you know how an online personal loan calculator helps you in making a financially responsible decision, get funds in no time with the instant Personal Loan from Bajaj Finserv. While existing customers of Bajaj Finserv get a pre-filled form to avail funds and may not need to share any additional paperwork, new customers need to submit only a few basic documents. Either way, there is no need to meet any representatives or visit a branch, and you can get the money you need from the comfort of home. Before you initiate this 100% digital process, make sure to calculate loan EMI.
To get the funds you need right away, simply check your pre-approved offer and enjoy an instant and hassle-free experience.
