Use an online calculator before you apply for an unsecured personal loan
Availing of an unsecured personal loan is very easy today. Popular lenders such as banks and non-banking finance companies (NBFCs) have made it possible for you to avail of an instant personal loan in just a few clicks. The online process is quick and you can get the money you need in hours, if not in minutes.
However, despite its convenience, it is important to remember that a loan is a financial commitment and you are responsible for its timely repayment. Not repaying the loan on time gets recorded in your credit report and impacts your credit score negatively.
This is where an online calculator comes in handy. A personal loan calculator is an online tool that helps you understand exactly what your responsibilities are by giving you information about your personal loan EMI and other important factors. By using it smartly, you can determine whether you can afford the loan in the first place and plan repayment to pay off the loan without exerting pressure on your personal finances.
Take a look at how you can use an online personal loan calculator to make a better borrowing decision before you even begin your application to get an instant personal loan.
1. Get invaluable insights into the cost of your loan
The cost of borrowing is a factor that should rank high on your list when you are choosing to avail of an instant personal loan. To understand this, you need to calculate the interest payable, the EMIs and the total amount payable to the lender. These calculations are very important to making a sound borrowing decision and with the personal loan calculator, you can get answers that are accurate and instant.
For instance, when you use the Bajaj Finserv Personal Loan EMI calculator, you simply need to enter values for the loan amount, tenor and interest rate. Then the calculator instantly displays you results that clearly state exactly what you owe while also visually representing the breakup between interest payable and principle payments using a pie chart.
2. Choose an appropriate repayment tenure
Before you get an instant personal loan, it is important that you have an idea of what your repayment terms are going to be like. This includes knowing the tenure you intend to opt for and the EMI amount that you will be able to bear. It is important to have clear repayment goals, which may be either paying low and comfortable EMIs or keeping your interest outgo as minimal as possible by making larger EMI payments through a shorter loan tenure. Using a personal loan calculator, you’ll find that a longer tenure results in lower EMIs, whereas a shorter tenure works best when you want to reduce your total interest payment. By tweaking the tenure and loan amount, you can easily arrive at the ideal EMI amount for your loan.
3. Compare different personal loan offerings
While it is quite easy to avail of an instant personal loan, it is important to do your research before you apply. Start by shortlisting offerings of personal loans from various lenders by checking their features and benefits. Quality of service, fees and charges, and interest rates are among the more important factors that will impact your personal loan and a personal loan calculator helps you make comparisons with relative ease. Using the tool, you can very easily determine the most affordable offering available to you at varying tenors as it shows you how even a small difference in the personal loan interest rate has a big effect on the EMI amount.
4. Understand your repayment schedule
A key benefit of using the personal loan calculator before you apply is that it gives you access to the amortisation table. Here, each EMI for the given tenure is clearly listed with a detailed breakup of the interest and principle component. This type of information is especially helpful when you’re looking to make part-prepayments as it identifies ideal times in the tenor to do so where your interest savings would be maximum. In addition to this, a clear breakup also helps you plan your repayment in a more systematic and organised manner.
Based on these pointers, the personal loan calculator has a very important role to play when you’re looking to borrow funds. Lenders such as Bajaj Finserv have simplified the application process by introducing several easy online tools to help you make a more informed decision before availing a personal loan.
For instance, you can check your personal loan eligibility using a free online personal loan eligibility calculator. This tool helps you identify the loan amount you qualify for before you apply. You only need to enter your personal information including monthly income and expenses to understand your eligibility for a loan.
Besides this, you also have access to the Bajaj Finserv foreclosure and part-prepayment calculator. With this, you can determine the best time to foreclose your loan and know exactly how much interest you’ve saved and what you’re required to pay to close your loan. Similarly, you can use the part-payment calculator when you have surplus funds and choose to part-prepay the loan to know your revised EMIs, tenure and the amount you’ve saved on interest.
Now that you know why using a personal loan calculator is so important before you get an instant personal loan, choose the right offering. The Bajaj Finserv Personal Loan is a smart choice as it gives you funds up to 25 lakh, a flexible tenor of up to 60 months, instant approval for online applications, and disbursal in under 24 hours.
What’s more, you can also opt for the Flexi Personal Loan variant and enjoy added flexibility with your loan. Here, you can borrow multiple times, as needed, and pay interest only on the amount you’ve withdrawn. This makes it possible for you to reduce your EMIs by up to 45%*.
So, if you’re looking to avail of an instant personal loan replete with useful benefits, make sure you check out an online calculator to make sense of the terms of the loan first and then proceed.