Before opting for any loan, knowing every aspect of it is essential. This is because, as an individual, you are going to pay a chunk of your hard-earned money every month.
One essential step that has become a compulsion is using an EMI calculator. Once the potential borrower download EMI calculator app, it definitely helps them to make more informed decisions about their overall finances.
What is an EMI?
EMI or Equated Monthly Installment is a fixed payment that a borrower must pay each month to repay a loan amount taken from a bank/financial institution. It consists of two components, i.e., the principal amount and the interest charged on it. The principal amount is the original amount borrowed from the institution, and the financial institution charges the amount of interest for lending the money.
Furthermore, the amount of the loan, the rate of interest, and the tenure are the three main factors on which the EMI is calculated. The interest rate here is usually predetermined for the entire loan tenure, and the amount, as well as the tenure, on the other hand, is decided by the borrower.
What is an EMI calculator?
Available with an EMI calculator app, it is a tool that helps you plan your finances very efficiently. Based on the loan amount, rate of interest, and tenure helps the potential borrower to calculate the EMI for a loan. It is quite a convenient way for borrowers to estimate the monthly repayment amount and plan their financial goals accordingly.
Once an individual downloads this tool on the smartphone, they have to enter the loan amount, the rate of interest which the lender will charge, and the tenure of the loan in months. After entering the details, this tools instantly provide all the information within a blink of an eye.
What are the Benefits of Using an EMI Calculator Application for Your Loans?
● Accurate Calculation
Once you enter all the mandatory fields in this tool, it offers accurate and reliable calculations. These calculations are all of the monthly installments you need to pay toward the loan.
● Quick and Easy
Once you download EMI calculator app, it is no rocket science and super easy to use. All you need to do is enter the loan amount, rate of interest, and tenure. Then, within seconds, it gives the EMI amount to be paid.
● Planning budget
Using such a tool, one can easily plan the financial budget. This is because once you know how much exact amount you need to set aside each month, things become relatively easier.
Calculating EMI manually is obviously a time-consuming process and prone to errors. However, these tools help you save a lot of time and ensure accuracy.
If you plan to take a loan, using this tool beforehand is highly recommended. In my opinion, one of the best emi calculator app is the one offered by Bajaj Finserv. Believe me, once you start using this application, there is no going back. It is pretty easy to use, and apart from this tool, this application has a lot to offer.