Personal loans come in handy in fulfilling your personal needs. Whether you have to plan a wedding, meet unexpected medical costs, face a business related financial obligation or want to refurnish your home, a personal loan provides you the funds needed. Though the loan is easily available, many of you often wonder whether you would be able to repay the loan affordably or not. After all, since the loan is fulfilling your personal need, you should also fulfil the loan repayment within the chosen loan tenure. Easy repayment of the loan is possible only if it is affordable. How do you determine the affordability of the loan repayment?
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The answer is through a personal loan calculator. Yes, online personal loan calculators are available which calculate both the loan eligibility and the EMIs needed to repay the loan. Let's understand how the calculators work -
Personal loan eligibility calculator
If you are not sure how much money you can avail from the loan, there is a personal loan eligibility calculator. This calculator calculates the loan amount which you are eligible to avail. You simply need to enter your details like your age, address, income, nature of occupation, etc. The calculator would take into consideration the details which you have entered. Thereafter, the loan quantum, based on your eligibility would be calculated and displayed.
Personal loan EMI calculator
Another important and beneficial calculator is personal loan EMI calculator. This calculator calculates the prospective EMIs which are payable for a given amount of loan. You have to provide the details of the loan amount, the repayment tenure and the interest rate into the calculator. These details are taken to calculate the EMI payable every month. You can also change the EMIs by changing the loan details which were entered in the calculator.
Financial planning using personal loan calculators
Both these calculators help fulfil your financial needs through a personal loan. Here's how -
1. The loan eligibility calculator tells you exactly the amount of loan which you can avail based on your eligibility qualifications. Thus, you get to know the loan figure beforehand. Once you know the funds available to you, you can plan for your financial needs. You can estimate your financial requirements for different financial obligations and then apply for the loan.
2. The loan EMI calculator tells you the amount of EMIs which would be payable when you choose a particular loan amount and repayment tenure. When you see the EMIs, you can understand whether the EMIs would be affordable on your pockets or not. You can also increase the EMIs if you can afford increased EMIs and pay off your loan burden early. Alternatively, you can also decrease the EMIs by increasing the repayment tenure or decreasing the amount of loan if you feel that the EMIs are not affordable. Thus, the personal loan EMI calculator helps you control your finances even when repaying the loan so that your loan repayments do not put you in a financial crisis.
Therefore, to conclude, personal loan calculators help you in meeting your financial needs by making you prepared. You can know the loan amount and also the prospective EMI repayment using the personal loan calculators. This knowledge lets you plan your finances better and avail a personal loan easily.
