Know with the loan calculator how right it is for you to take a loan.

At a time when personal loans are easily available to people, EMI or monthly installment calculator has emerged as an essential digital tool. This has made the decision of taking loan easier for millions of people. Such features now feature prominently on banks’ websites and other financial platforms, changing the way borrowers plan and manage loans.

Rajesh Katoch, CEO, Easy Capital, says, ‘It is important for borrowers to use a personal loan calculator, because with this any person can easily get information about how many days it has to be repaid after taking the loan. . Apart from this, through EMI calculator, you can also find out the amount you are borrowing, its interest rate and the time limit for repayment.

Budget and Financial Planning: The biggest advantage of a personal loan EMI calculator is that it helps you in budgeting. Having complete information about the installment to be paid every month helps the borrower to know whether he will be able to repay the installment after other necessary expenses.

Comparison can be made with the offers available on loan: Different lenders offer personal loans at different interest rates and terms. Using the EMI calculator, customers can compare how different terms and interest rates may affect their payment. Its biggest advantage is that it lets you know which is the easiest and lowest interest rate loan option.

Flexibility in loan repayment period: The calculator makes it easier for the customer to understand how much time he has to repay the loan. Customers can understand how extending or shortening the loan repayment tenure will affect their monthly installments and how much interest they will have to pay in total.

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Calculation is done quickly and easily: The EMI calculator is very easy to use and does not require any special financial knowledge. Users can easily get information about their monthly installments by entering the loan amount, interest rate, repayment period.

You can know the status of payment through graph: You can also know the payment time through graphs in many online calculators. Apart from this, you will also know how much amount will be spent on principal and interest on each of your installments with the passage of time. Through such a graph, it becomes easy to understand how much money was spent on which item to fully repay the loan, which will increase the understanding of first-time loan takers.

Katoch said, ‘By using an EMI calculator for a personal loan, the customer can easily understand how it will affect his financial condition before applying. This also ensures whether they can repay this loan easily or not. With this facility, borrowers can easily compare loan offers from different lenders and avail loans with lower interest rates and easy terms.

In the coming times, the role of EMI calculator is going to increase by incorporating Artificial Intelligence (AI) and Machine Learning. Many fintech companies are creating advanced calculators that can make personal loan recommendations based on users’ financial situation and spending patterns.

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