If you have taken a loan from a bank or financial institution, then the same needs to be repaid in the form of an EMI.
The monthly payments make it easier and convenient for the borrowers to repay the loan within the agreed timeline. A loan helps us fulfil many of our goals in our lives like expanding an existing business, purchasing a home, a car of the latest model, an expensive gift for your loved one, financing an overseas education for your kid or planning a grand wedding party.
EMI is an acronym of Equated Monthly Installments that is a total of principal and interest. With passing time, the part of the interest repayment considerably reduces, and the principal component of the EMI increases. The calculations of EMI are usually very complicated, and thus, doing this manually for everyone is not possible. To do away with this issue, one can use a loan EMI calculator available online and give an accurate calculation of the EMI amounts month on month with the correct input of the loan details like loan amount, total tenure of repayment, rate of interest etc.
6 ways EMI calculator can help you in planning your finances well
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Accuracy
While you opt to use a simple calculator for conducting the calculations manually, there are high probabilities of fetching a faulty output. Several types of mistakes may occur due to slight errors, which may not give you a clear picture. However, when you opt to use an EMI calculator, it is very user-friendly, and the result obtained is always 100% accurate.
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Convenience
Even a few years back, we used to use paper, pen & calculator for doing the EMI calculations for a loan. But now, the process has become easier and convenient with an online EMI calculator. They are very simple to use and can be found out online very easily. All you need to do is to enter the necessary details correctly.
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Helps in choosing the right lender
The various lenders can give various offers and also provide various kinds of loans at various rates of interest, and also the tenure periods also differ largely.
When you use an EMI calculator, you need to determine which lender gives you the best deal on the loan you require. The EMI that is required to pay and the total cost of borrowing can easily be determined. For instance, if you plan to take a business loan, you can check the offers of business loans from multiple banks and use a business loan EMI calculator to determine the EMI and cost of borrowing from the different banks. This way, you would be able to choose the right lender.
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Easy calculations
If you are not very finance-savvy and usually keep away from the monetary calculations as you cannot handle the complicated calculations, then an EMI calculator can be a saving grace. While using an online pre-programmed loan EMI calculator, you can fetch the details of the calculations just by correctly feeding the loan details.
- Planning all your finances
When you are aware of the complete cost of borrowing a loan and the EMI amount you need to pay in advance, you can easily plan for your future goals. You would be able to plan your retirement or second home or maybe some other investment. Knowing what amount you would be paying as an EMI for a particular loan would fairly help you plan your budget.
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Facilitates in choosing the right loan amount
Considering the prerequisites, you can settle on a specific loan that you are eligible to receive. The borrowing of a loan is simple, but the repayments are demanding and require a ton of hard work and planning. Hence, it is always advisable to borrow only that amount you require and your repayment capacity.
With the help of a loan EMI calculator, you easily get to know what amount you are required to repay. Hence, you can decide the best loan amount for yourself and determine your repayment capacity. So, you would be able to apply for a loan as per your finances and budget.
Why do you need a loan EMI calculator?
When you are setting your financial goals, like purchasing a car or planning your kid’s education, you ideally need to calculate the amount you require to save and the total cost of borrowing. An EMI calculator would surely play an integral part in your financial planning for the future.
Hope this post brought clarity as to why a loan EMI calculator is important for your business. #KhabarLive #hydnews
