Are you planning to take a personal loan? If you are, then you must keep a calculator handy. Not an ordinary calculator, but an EMI calculator. You must be having various questions about what an EMI calculator will look like and what does it do. Having questions is not an uncommon thing, as not everyone comes across an EMI calculator. You will know well about it when you actually use it. Before you learn about the benefits, take a look at what it is and how it used, and what are the perks of using an EMI calculator.
What is an EMI calculator?
A calculator to be precise is a device that calculates using numbers and gives you a definite number or an answer. However, an EMI calculator does the same but the purpose is different. It is only used by those who take a loan or by the loan provider. It is used to calculate the easy installment monthly which is due for loan borrowers. An EMI calculator will help you to get an accurate number regarding the amount which one has to pay monthly to repay back the entire debt amount. It keeps into account elements like principal loan amount, tenure, and rate of interest.
Elements of EMI calculator
There are three elements of an EMI calculator and it takes into account three things to give an accurate number or amount. Take a look at the elements.
Principal amount: A principal amount is the loan amount that the borrower borrows from the loan provider. It is the actual amount and does not involve any interest or extra charges. The principal amount is very essential to get the right EMI amount with the help of the EMI calculator.
Tenure: Tenure is the number of months for which a person borrows the loan amount. The higher the tenure the less will be the easy installment amount monthly. A slight change in terms of a few months can abruptly change the EMI amount. An EMI calculator can help you make slight changes in the amount and give you an accurate number.
Rate of interest: The rate of interest is a percentage that is charged by the loan provider to the borrower. When a loan provider offers a particular amount, he charges a particular amount of interest which is added with the principal amount, and then the EMI is calculated. The rate of interest keeps varying and the calculator can help you with easy calculation as the different rate of interest is given to it for calculating.
Benefits of using an EMI calculator
Accurate results: There is a possibility of error when the calculation is done by man. No matter how good he is with numbers, he may make a mistake with a number that can be very intimidating. However, an EMI calculator will give accurate results with no room for errors. You can be best assured that you will get results which can be trusted. Errors can happen only when you have to input the wrong details and not the mistake of the EMI calculator.
Convenience: Using a pen and paper every time you try to figure out a perfect loan amount can be quite a daunting task. What about an online calculator that gives you results instantly? You can keep calculating as many times as you want on the go. Confused about the loan amount? Use an EMI calculator to know the accurate number instantly. Finding an EMI calculator is easy nowadays as there are various websites that offer free EMI calculator.
Easy calculation: If you are among those who were bad with calculation, then an EMI calculator is the right pick for you. No matter how big your amount is, or how confused you are, you can calculate easily by just typing the numbers. There is absolutely no need to use your fingers and head to calculate huge calculations.
Helps in choosing the right loan provider: An EMI calculator helps you to compare various interest rates and principal amounts offered by various loan providers. You can calculate the various rate of interest and get the right amount for yourself. By comparing various rates and getting different amounts, you can choose the right loan provider who offers you the best rate of interest and highest loan amount.
Choose the right loan amount: Future needs to be kept in mind while borrowing. You cannot borrow without thinking about how you will repay it back. You need to choose an amount which will not burden you and you can repay back easily. An EMI calculator can help you input various amount and rate of interest to get a specific amount which you need to pay. Compare and get enough numbers, so that you get the right loan amount.
Plan your finance: An EMI calculator helps you with an accurate EMI amount. The moment you know your dues monthly, you know how to manage them and other expenses. The right amount helps you to manage your all other expenses so that your entire salary is not invested in paying your debt.
Why you need it: An EMI calculator handy helps you to know the amount you need and the EMI associated with it. This amount will help you to save from before so that you can pay your bills on time.
Having an EMI calculator handy has its own benefits. A Clix personal loan EMI calculator will help you in a smooth financial journey. Use a calculator and take your financial decisions responsibly.