A personal loan is an unsecured credit provided by banks or non-banking financial companies based on your credit history and personal income. It is also known as a consumer loan, catering to various personal needs.
Understanding Personal Loan EMI:
Equated Monthly Installments (EMIs) are a way to repay loans gradually on a monthly basis. Each EMI consists of a component of the principal loan amount and the interest charged. Since these loans involve minimal paperwork and have a quick processing time, having a good credit score and being prepared to pay higher interest rates are important.
What is a Personal Loan EMI Calculator?
A Personal Loan EMI calculator helps you understand the installment amounts you need to pay monthly for repaying a loan. This tool serves as an essential financial planning aid, enabling you to make informed decisions about whether taking a loan fits your budget or not. It also provides insights into other loan-related costs.
Benefits of Checking EMI:
- Assess loan eligibility
- Determine total loan amount and tenure
- Plan loan repayment
- Prepare for prepayment
Reasons for Taking a Personal Loan:
- Funding an expensive wedding
- Making a big purchase
- Handling medical emergencies
- Home repairs or renovations
- Clearing credit card debt
- Financing a business or investment