Choosing The Best Loan Offer With An EMI Calculator
Loans offer instant access to funds to get you through a financial crunch. Whether you need funds for home renovations, medical expenses, or making a down payment for your vehicle, this funding option can help you meet your needs conveniently.
That said, you must ensure that you get the offer to keep your cost low and make the most of the loan. One way to do this is to use an EMI calculator before applying. Read on to learn how this tool can help you avail of the best loan offer.
Understanding EMI Calculators
When you get a loan, you need to repay it timely via fixed-amount instalments divided equally over the loan tenure. These instalments are known as equated monthly instalments (EMIs). Your EMI includes part of the principal amount along with the interest applicable on it.
You can get calculations of the EMI amount easily with an EMI calculator. The digital tool calculates the EMI amount instantly on the basis of the following details:
· The loan amount
· The rate of interest
· The loan tenure
You can also use the following formula to calculate the EMI amount of your loan manually:
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
Where:
· EMI is the Equated Monthly Instalment
· P is the principal loan amount
· R is the rate of interest
· N is the loan tenure
Tips to Use an EMI Calculator for the Best Loan Offer
Here are some ways to get the most cost-effective loan deal with an EMI calculator online:
Customise the Loan Terms
The EMI amount associated with your loan depends on the loan amount, the interest rate the lender applies, and the tenure you choose. With this digital tool, you can input these terms and try different combinations to check the EMI amount for various combinations.
This tool clearly shows how different loan terms affect your EMI and total repayment amount. Therefore, it helps you find the appropriate balance between EMIs and the interest payable to get the best deal.
Evaluate Your Repayment Capacity
Before finalising a loan option to meet your financial requirements, it is essential to determine whether the EMI fits into your budget. By entering the loan terms, you can get the EMI that you need to pay every month for the loan.
By doing so, you can assess whether the average EMI amount is suitable for your budget. In addition to choosing a suitable EMI amount, you can also plan your repayment strategy in advance.
Compare Multiple Loan Offers
With the availability of multiple loan options and lenders, choosing an option can be difficult. By providing the loan amount, interest rate and the chosen tenure, you can get the EMI for a loan option.
With the help of this tool, you can try out various loan terms and compare the EMI as well as the total repayment amounts. This way, you can opt for the most cost-effective option and meet your goals effectively and efficiently. While you can simply compare interest rates, knowing the actual monetary differences helps make a more informed decision.
Steps to Use an EMI Calculator
Here are the steps you need to follow to use a calculator:
· Step 1: Choose a reliable calculator, like the Bajaj Markets: EMI Calculator
· Step 2: Provide the total loan amount that you wish to borrow
· Step 3: Enter the rate of interest associated with the loan amount
· Step 4: Choose a loan tenure that is suitable for you
· Step 5: Click on ‘Calculate’ after providing all the details to get the EMI amount
· Step 6: Compare the EMI amount at various loan terms
· Step 7: Choose a loan option with terms that are suitable for you
You can use this tool through the Bajaj Markets: EMI Calculator App and choose the best loan offer. With this app, choosing the right option becomes easier as you have the flexibility to try various loan combinations and check which option is the most cost-effective. Download the app on the Play Store or App Store to efficiently plan your loan.