As per a CRISIL report, NBFCs may face a drastic increase in Loan delinquencies in 2021, as high as 250 basis points. However, this high default rate for loans has plagued Indian financial institutions previously as well.
- According to a report, NBFCs and other lenders filed approximately 1,250 cases to recover money from loan defaulters during the initial few months of 2020.
- These cases were filed to recover substantial dues amounting to more than Rs.24,700 crore.
To avoid such situations as a borrower, one should check EMIs payable and the interest cost of a loan beforehand. A personal loan EMI calculator thus serves as an ideal tool to perform such calculations. Prospective borrowers must utilise this handy online tool without fail to ensure a stress-free repayment. Also, this calculator offers additional benefits.
How to use a personal loan calculator for Simplify Loan Repayment?
As the name suggests, a personal loan EMI calculator enables borrowers to check the amount of monthly instalments they would need to bear for a specific credit. Such handy information aids in financial planning, reducing a borrower’s burden during the loan repayment tenure.
Still, one must understand how he/she can use a personal loan calculator before taking advantage of its features. Here are some steps to follow –
- Step 1: Visit a lender’s official website and navigate to the EMI calculator section.
- Step 2: In this calculator, enter the personal loan principal, interest rate and preferred tenure.
- Step 3: Proceed to click on calculate.
Following these steps should reveal a loan’s EMIs, the interest cost, and total payment necessary to clear the loan liability.
For instance, if the principal amount is Rs.10 lakh, tenure is 5 years, and the rate of interest is 13%, a personal loan EMI calculator will quickly derive EMIs for it as Rs.22,753. Also, the total interest cost calculated would thus stand at Rs.3,65,184.
Benefits of a personal loan calculator
Borrowers should use these calculators to get the most out of their personal lending. Here are some ways in which such tools can make one’s borrowing experience convenient –
- Faster calculation of dues
Without such calculators, borrowers would need to manually compute through a formula to arrive at their EMI amount. Apart from the hassle involved, solving such a formula would also require substantial time. These calculators, nevertheless, enable borrowers to assess their monthly instalments on the go.
- Helps plan repayment
Such calculators allow individuals to assess liabilities in advance. Thus, before acquiring a loan, you must check the EMIs you would need to bear. With proper financial planning, you can make timely EMI payments and avoid defaulting on repayment, thereby maintaining an impressive CIBIL score as well.
- Eliminates the risk of errors
Using a personal loan EMI calculator to determine your EMIs should be more convincing as these tools compute the results accurately. Manual calculations, on the other hand, can lead to costly mistakes, which can create immense financial strain during loan repayment.
- According to a recent report, Indian financiers could be staring at substantial loan defaults in the next 18-24 months.
Besides this EMI calculator, borrowers can also utilise the personal loan eligibility calculator. Such a tool allows one to check the maximum principal he/she can avail from a particular NBFC based on a set of eligibility parameters.
Eligible applicants can also take advantage of pre-approved offers from reputed lenders, such as Bajaj Finserv, ensuring convenience and time-effectiveness during loan applications. These offers are available on personal loans, business loans, and credit cards, among several other financial products. You can check your pre-approved offer by submitting a few essential details.
In case you are unable to avail the type of loan required, you can always seek suitable ways to improve personal loan eligibility. A good way of doing this is to take measures that help build an impressive credit rating and repayment history. Still, knowing how to calculate personal loan EMIs is crucial as it would help such a borrower avail a suitable loan.
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