Many individuals prefer to take out Personal Loans for various reasons, such as renovating a home, pursuing higher education, or taking a vacation. To obtain a loan, individuals must complete the Personal Loan application.
However, certain aspects of Personal Loans can be tricky for new applicants, such as determining how long it will take to pay off the loan, what the EMI amount will be, and more. To simplify this, financial institutions offer calculators for Personal Loans. Let us examine these online tools in detail.
What is a Personal Loan calculator or Personal Loan eligibility calculator?
What is a Personal Loan eligibility calculator?
A Personal Loan eligibility calculator is an online tool provided by a bank that calculates the loan amount you can borrow. The tool considers various factors, such as income and age, to determine the loan amount. The tool provides a preliminary estimate of your loan capacity before you file a Personal Loan application.
What is a Personal Loan EMI calculator?
The EMI calculator for a Personal Loan is an online tool offered by a bank that helps evaluate the EMI for your Personal Loan. EMI is a fixed monthly payment that you need to make to the bank over a specified period. Being aware of the monthly EMI allows you to plan your Personal Loan application accordingly.
Steps to use a calculator for a Personal Loan application
Using an eligibility and EMI calculator for a Personal Loan is easy. Here is how you can use both calculators for a smooth Personal Loan application.
Steps to use the eligibility calculator
- Step 1: Visit the official website of the bank and find the “Personal Loan Eligibility Calculator”.
- Step 2: Open the calculator and enter your date of birth, income and expenses and then click on the “Apply Now” button.
- Step 3: The calculator will provide the estimated amount you will be eligible for when taking out a loan, based on your income.
Steps to use the EMI calculator
- Step 1: Go to the “EMI calculator” for a Personal Loan webpage on the official bank website.
- Step 2: Next, enter the decided loan amount, interest rate and loan tenure.
- Step 3: After entering all the information, the calculator will display the estimated monthly EMI amount that you need to pay.
Tips for using a calculator for a Personal Loan
To effectively utilise the eligibility and EMI calculator for a Personal Loan, consider the following tips.
- When entering details into calculators, ensure that all information is correct and accurate. Incorrect information can lead to wrong calculations.
- If you are using the calculator before filing a Personal Loan application, then experiment with different combinations of loan amounts to choose the amount that aligns with your financial goals.
- Lastly, it is crucial to factor in additional charges which are typically not included in calculators, such as processing fees, late payment fees and more.
Key takeaways
The eligibility and EMI calculator for Personal Loans are effective online tools that assist individuals with their loan planning. Using these tools, you can make an informed decision before submitting the Personal Loan application.
These tools are generally easy to use and can be accessed on the respective bank’s website. However, when using these tools, ensure that you enter accurate details to obtain a correct loan amount estimate.