Primarily, there are three main values that are to be considered while using the Personal Loan EMI Calculator – Loan Amount, Rate of Interest, Loan Tenure, and EMI. In the below section, let's briefly come to know about these values.
Very simply, the Loan Amount is the sum of money you are looking to get sanctioned from the financial institution. The loan amount depends on the kind of your financial pursuit.
The Interest Rate is the actual interest percentage charged by the financial institution against the sanctioned loan amount. Generally, the interest rate varies between 12.5% to 24% – but the final interest rate is also dependent on the loan applicant's profile as well.
The time period during which you (or any loan applicant) will be repaying the loan through instalments is called the Loan Tenure. Usually, the personal loan tenure may vary between 12 to 72 months.
First of all, EMI stands for Equated Monthly Installments – this is the amount of money that will be paid by you every month as a part of the repayment structure of the loan borrowed by you.
It's always advised to use an EMI Calculator before actually applying for a loan because through the EMI Calculator's use, you can plan your repayment smartly. You can analyse the loan amount, its tenure and other specifics to gain clarity and confidence before applying for a loan. Rather than being ignorant, it's better to have a close-to-real idea beforehand.