A personal loan is a type of unsecured loan which doesn’t require any collateral. Both working and self-employed individuals can avail it. It can be used for any financial emergencies like medical emergency, travel, credit card bill payment, financing of new business, or to improve one’s credit score, etc.
When you are thinking of applying for a personal loan, you might have doubts about the loan amount you will get or your repayment amount. The loan amount you take depends entirely on your eligibility and EMI. Let’s know how to calculate EMI for Personal Loan and how to check eligibility.
Personal Loan Eligibility:
Your repayment capacity greatly influences your loan eligibility. Various other factors do too. When you apply for a personal loan, your bank will examine if you are financially capable of making repayments on time i.e., the discussed tenure. Your credit score, outstanding loans, current earnings, and continuity of income is checked through by your lender.
The more financially stable you are, and also if you have a well-maintained credit score, you are eligible for higher loan amounts.
Now, calculating your Personal loan eligibility is made easier with the help of personal loan calculators.
Personal Loan EMI:
EMI is the amount you pay every month for the loan you have availed until the decided tenure, which is fixed. The loan amount, the rate of interest, and the loan tenure are what influences your EMI. The bank fixes the interest rate while you can adjust the loan amount and loan tenure according to your comfort. It is flexible.
So, how is EMI for Personal Loan calculated using a personal loan calculator?
- First, you need to decide how much amount you can afford to pay out every month.
- Then, estimate how much loan amount you need to meet your expenses or financial need.
- Visit an online personal loan calculator website. It can be your bank’s website.
- Go through the easy steps on how to check Personal Loan eligibility. It will give you the insight to use the calculator for a personal loan.
- Then, enter the amount in the Personal Loan EMI calculator.
- Next, enter the rate of interest offered by the bank.
- Lastly, enter loan tenure in years.
After you carefully complete these steps, the calculator will determine and give you your Personal Loan EMI. If you think the EMI is high, you can change it by adjusting the loan amount and loan tenure.
If you can repay some higher EMI than what the calculator shows, you can raise your loan amount and also decrease the tenure if you are eligible for it.
If the EMI is higher than what you can pay, or is more than your repayment capacity, you may have to decrease the loan amount or increase the tenure. This is how you can easily calculate your personal loan EMI.
A personal loan can be used to meet expenses in a lot of situations and is easy to avail with no inconvenience. You can know your EMI, which means your equated monthly installments and other important things through a personal loan EMI calculator before you opt for a personal loan and also pre-plan your repayments according to your earnings.
One should look through all his financial aspects and eligibility or capacity to afford the loan and then make a decision to apply for a personal loan. Once you have made the decision, you just need to click on the ‘Apply now’ option on the EMI calculator page to get your loan application started. Then your bank will process the loan after examining your details under their criteria and terms and conditions. But not to worry, it is a hassle-free process and can easily be availed.