Planning to take a loan? Will you be able to afford the EMIs? How will you know the difference in EMI if you change the interest rate or tenure of the loan? With an EMI loan calculator! Let us have a look at how this powerful online tool can help you.
While there are a number of things that you should think about when taking a loan, the EMI is probably the most important. You should be able to easily afford the monthly payments to ensure that the loan is repaid in an efficient and timely manner. The EMI amount varies on the basis of the loan amount, interest rate and tenure of the loan.
But how will you calculate all these different aspects of the loan and know how the interest rate and tenure affect the EMI? Calculating them manually would surely be a time-consuming process which will be prone to inaccuracies. A better alternative is using an EMI calculator.
Let us have a look at how an online EMI loan calculator can help borrowers.
- Knowing the Amount You Should Borrow
Ask any expert, and they’d agree that you should only borrow an amount that you can easily repay. The monthly EMIs should be affordable to avoid missing any payments. With the help of the calculator, you can adjust different aspects of the loan like tenure and interest rate to calculate a loan amount whose EMI would perfectly suit your financial condition.
- Calculate the Difference in EMI with Respect to the Loan Amount
Needless to say, the changes in the loan amount will affect the EMI as well. With the help of the calculator, it is much easier to know the amount that you should borrow. Be it a home loan or a business loan, with the help of the calculator you can easily adjust the loan amount and know how it will impact the EMI.
- How the Difference in Interest Rate can Affect EMI Amount
The lower the interest rate, the cheaper would be the loan. Lenders in India offer different types of loans at different interest rates and thus it is very important to know how the difference in interest can affect the EMI amount. This will enable you to select the right lender and try to get a loan deal that is right for you.
- Relation Between the Loan Tenure and EMI
Even the loan tenure affects the EMI. Longer tenure means lower EMI and shorter tenure would mean higher EMI. You can adjust the tenure in the EMI loan calculator to understand how it will affect the EMI amount. Once you find an amount that is affordable, you can then select that tenure for your loan.
A Word of Caution
While the calculator providers try their best to make sure that the filters and calculations are as accurate as possible, it is important to know that the tool is available to help you find an approximate EMI. There can surely be some changes in the actual EMI when you take the loan, and it’ll be your eligibility that would decide the loan amount, interest rate and tenure of the loan.
Rather than calculating the EMI manually, online calculators are excellent tools that are accurate and do an excellent job of saving time and efforts. If you are planning to take a loan, make sure that you do use the calculator to stay informed and ensure that you borrow an amount that you can easily repay.