Personal loans are a no-hassle way to get access to immediate cash to meet your financial commitments. But being prudent is essential. You do not want to satisfy your immediate needs and land in a debt trap.
A personal loan, like every other loan, comes with a potential cost. Planning the repayment before applying for a personal loan is a smart financial decision to take.
The Alex Bank – personal loan calculator is a handy and error-free tool to calculate your personal loan EMI and work around the math to adjust the tenure or the principal amount, so you won’t end up in financial turmoil.
Online Personal Loan EMI Calculator
So, how does the personal loan calculator work? The online tool determines your monthly EMI and the total interest amount you are liable to pay based on your personal loan principal value, the chosen tenure, and the interest rate charged by the lender.
Here is a quick peek at the EMI calculator formula.
EMI equals [P x R x (1+R) N]/[(1+R)N-1]
P stands for the Principal or the personal loan amount
R stands for the Monthly personal loan interest rate
N refers to the number of EMIs or the repayment tenure
You are free to play with the principal and the tenure to come to an EMI number that meets your repayment capability. And this is how the personal loan calculator lets you plan your finances.
How Does a Personal Loan Calculator Help in Effective Financial Planning?
Listed below are a few reasons why using a personal loan calculator is necessary before applying for a personal loan.
You Accurately Calculate the Monthly Loan Expenses
A wrongly planned personal loan can leave you way behind in your financial journey. With a personal loan EMI calculator, you get a clear view of your expenses through the entire loan tenure. It thus lets you plan your other monthly expenses around it without creating chaos.
It Lets You Meet Your Goals Faster
Now that you are aware of the monthly EMIs and what you will save from your paycheck, you are better planning to meet your life goals. With a well-planned monthly budget, you are prepared to work out the expenses and savings around the EMI.
You Get to Choose the Best Lender
Picking the best personal loan lender is not easy. With so many options to choose from, narrowing it down to one can be perplexing. Thanks to the personal loan calculator, you need to key in different interest rates charged by varied lenders and then see what works best for you.
The online market today has made it simpler to apply for a personal loan. But with the easy availability of finances, there is always a risk of stretching oneself beyond the limit. This can prove dangerous.
With Alex Bank – a personal loan calculator, you will never end up miscalculating your monthly EMIs. The easy-to-use tool lets you try our various permutations and combinations of the principal and loan tenure to determine the optimal value.