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Business News/ Brand Stories / Importance of using an EMI calculator while getting a personal loan

Importance of using an EMI calculator while getting a personal loan

Using an EMI calculator is crucial when getting a personal loan. It ensures precise EMI computations for informed financial planning and hassle-free repayment

Importance of using an EMI calculator while getting a personal loanPremium
Importance of using an EMI calculator while getting a personal loan

Personal loans serve as a practical choice for those seeking a quick source of funds for their varied needs. Understanding the financial implications of borrowing, including equated monthly instalments (EMI) and overall interest, can be complex. This is where tools like the EMI calculator come into play, offering a user-friendly interface to simplify these financial computations. 

An EMI calculator is a straightforward yet potent tool that allows individuals to determine their EMI outflow before borrowing. With basic details like the loan amount, preferred tenure, and personal loan interest rate, users can swiftly calculate monthly EMIs.

Here are some of the key advantages of using an EMI calculator: 

1. Provides accurate calculations

The primary benefit lies in the instant and precise calculations provided by the loan EMI calculator. By inputting essential details such as loan amount, interest rate, and tenure, borrowers can determine the exact monthly EMI. This accuracy aids in meticulous financial planning, allowing individuals to understand their EMI commitments beforehand and plan repayments effectively.

2. Saves your time

Traditional manual methods of EMI calculation can be time-consuming, especially when exploring EMIs for various loan amounts. The loan EMI calculator streamlines this process, delivering instant results in just a few clicks. Its speed and convenience make it efficient for individuals with busy schedules, offering quick insights into repayment obligations. 

3. Reduces the risk

The use of an EMI calculator helps prevent costly financial errors. While manual calculations might overlook the impact of compound interest, the calculator provides accurate results, considering compound interest on the loan. This ensures individuals are not caught off guard by unexpected expenditures, simplifying budgeting.

4. Provides financial flexibility

The calculator allows users to experiment with different loan scenarios by adjusting variables such as loan amount, interest rate, and tenure. This flexibility assists borrowers in finding an EMI aligned with their budget and financial goals. It also enables exploration of options that minimise overall interest payable over the loan tenure.

5. Helps in strategic loan planning

An EMI calculator can help you in planning your loan as per the disposable income that you can use to pay off the EMIs. Moreover, it also helps you optimise your spending so that you can honour your EMI payments and fulfil your other financial obligations. You can also use this tool to borrow only what you need, lowering the overall borrowing cost and interest payable.

Lenders such as Bajaj Finance Limited offer personal loans of up to Rs. 40 lakh, with the funds disbursed within 24 hours* of approval. You can also use the personal loan EMI calculator and interest calculator available on the Bajaj Finserv website to calculate your monthly instalments. Simply enter your preferred loan amount, interest rate, and tenure to receive immediate and accurate results. Compare the different options and choose the one that would make loan repayment easier. Visit the Bajaj Finserv website and apply for a personal loan without any hassle. 

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same. The article does not constitute financial advice.



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Published: 08 Feb 2024, 03:07 PM IST
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