How To Check Personal Loan Emi Online?

Loans have become indispensable in phases of life in this modern era. Cutthroat competition and high price have become a hallmark of the market these days, and this is more evident in sectors such as health and education. It requires a lot of money in almost everything an average individual does in his day-to-day life and no wonder takes a big chunk away from his regular budget.

This is where a personal loan can come as a relief to him, when he is seeking that perfect balance between his regular needs and future plans. Lenders in India have acknowledged this need to perfection and have devised quality personal loan products to cater to the diverse needs of individuals.

All an individual needs to do these days is to get a personal loan, satisfy his urgent/ immediate needs and repay the loan on a later date, at his own convenience, in the form of easy EMIs. This way, he can stay away from any additional stress on his regular financial budget.

What is meant by a personal loan EMI?

A personal loan EMI (Equated monthly Installment), is the monthly sum that a borrower needs to pay to the lender, on a scheduled date every month, over the loan tenure. The amount is calculated in such a way that parts of both the principal and the interest amount is paid off every month.

Different online platforms exist these days where a borrower can check his personal loan EMI online within just a couple of minutes. Financial service aggregators such as Afinoz.com have come up with tools named personal loan EMI calculators which give an accurate account of personal loan EMIs, which benefit the borrowers immensely. But, before you check your personal loan EMI online, you should know about how these tools function.

How can you check your EMI online in a personal loan EMI Calculator?

A personal loan EMIcalculator presents a detailed chart from where a borrower can plan out all his expenses related to a personal loan. But, you need to provide certain basic information related to your personal loan to it, before the calculator calculates the details desired.

Inputs to a personal loan EMI calculator:

• Loan amount

This is the amount you are thinking of borrowing from the lender. The entire interest amount to be charged on you is calculated from this loan amount. The higher is this amount, the more will be the interest levied on you and the more will be your EMIevery month. You have to enter your preferred loan amount into the personal loan EMI calculator, in the appropriate space provided for the same.

• Loan tenure

This is the time period by which you need to repay your personal loan amount. Most of the lenders offer a range and you can choose any time period inside that range to repay your loan within. This tenure usually fluctuates between 1 to 5 years when it comes to a personal loan. The longer is your tenure, the more will be the interest accrued and the more will be your personal loan EMI outflow every month. Therefore, you need to select loan tenure in such a way that your EMIremains within your affordable range. The EMI calculator will surely help you to evaluate this. If after inserting a particular loan tenure into the calculator, the personal loan EMI comes out to be outside your affordable range, you can change the tenure into a lower one and try again, till your personal loan EMI becomesaffordable to you.

• Rate of Interest

It is the rate offered to you at which the lender will charge interest on your personal loan amount. These rates vary depending on your credit history, the loan amount, and in general from lender to lender. Therefore, you would do well to compare the personal loan offers from multiple lenders before making your final decision. The lower is the rate of interest; the lower will be your personal loan EMI. You can always refer to the useful online platform of Afinoz.com which provides comparative insights to help you choose the icici personal loan offer with the cheapest interest rates.

The output of a personal loan EMI calculator:

A personal loan EMIcalculator usually calculates three major things, the EMI, the amortisation table and the complete breakup. These three, in combination, create a proper picture in front of a borrower and makes him clear about his affordability when it comes to a particular personal loan.

EMI- This is the basic and the most important result provided by an EMI calculator. This accurately informs you how much amount you need to pay to the lender on any given month. With this information in view, you can assess whether you can repay the amount inside the scheduled period or not. If not, you can always alter the inputs such as the loan amount or the time period and ask the calculator to compute the EMI again.

AmortizationTable: With this output, an EMI calculator displays the progress of your personal loan with time in the form of a detailed chart. It basically informs how much you would have repaid to the lender before the expiry of a particular time period, say, a year.

The breakup- This includes different parameters on which the personal loan EMI is calculated. This is one of the most important outputs provided by the EMI calculator as it brings complete transparency to the personal loan deal. It displays the principal amount, processing fee, interest rate, and other parameters involved in the process in an easily understandable manner.

You can make your own decisions with the help of a personal loan EMI calculator

When you use a personal loan EMI calculator, you can make your own permutations and combinations with the inputs you feed into it. This will eventually help you in making an informed decision. Also, you can also make important decisions on the basis of important market fluctuations such as changes in the rate of interest, as announced by different lenders from time to time. For this, you need to know about the factors that can change a personal loan EMI amount.

The EMI amount may vary along with the loan tenure, depending on some factors or situations. Firstly, in case there is a change in the interest rate, the initial interest amount is likely to change during the period in which the change gets reflected. The changed rate is applicable to you only if you opted for a floating rate of interest. However, it can impact you either positively or negatively.

Secondly, if you can make a good prepayment during your loan tenure, the principal amount gets reduced. As the interest amount is calculated on the outstanding principal amount, your EMI will also come down as a result. Do have in mind that some lenders levy prepayment charges, usually in the range of 1%-3% of the outstanding loan amount.

Therefore, it is important that you should consider the above-mentioned factors and use the personal loan EMI calculator thoughtfully – so that you can extract the maximum benefit out of it.