Loan Calculator - Calculate EMI, Affordability, Tenure, And Interest
Introduction
Here is the simple and multi-purpose loan calculator that can assist you with four queries. The inquiries that one can seek answers to are as follows:
- EMI – What is the monthly payment for my loan?
- How much loan can I borrow without going into a debt trap?
- Tenure of my loan repayment
- The interest that you have to pay for a product bought under a “low EMI” scheme.
Having access to an easy-to-use platform that fetches immediate results is what defines a loan calculator. Apart from the aforementioned questions, this one can answer others as well.
Before jumping to the use of this calculator, let’s understand the concept of Loan APR. This has a direct impact on the loan repayment that we will discover here. Lending entities like banks and HFCs impose fees in addition to interest on loans. Furthermore, the variety of charges levied is non-refundable. These include processing fees and paperwork fees when approving a loan application. These one-time fees are accounted for in loan APR. After accounting for the loan interest rate and the charges you incur while applying for a loan, the loan APR shows the true cost of your loan. APR is an abbreviation for annual percentage rate. The Loan APR shows the effective cost of your loan annually. Moreover, it shows the internal rate of return (IRR) on loans for the banks.
Loan EMI Calculator
The first aspect and question that you can get an answer to are EMI. It can instantly calculate your loan’s EMI. Additionally, it was created to make things simpler, as you can compute the EMI by entering the principal amount, the interest rate, and the loan’s term. Even though the interest rates offered by different banks may change, you can quickly emi calculate your monthly payment at any time. Knowing the EMI of a loan amount that you want can help you determine whether you can afford the loan.
Loan Affordability Calculator
When taking out a loan, all borrowers are concerned with the EMI repayment schedule. If money is managed wisely, everyone can avoid getting trapped in a debt cycle. It is possible to ensure that you receive the loan of your choice by factoring in the amount of EMI you will be able to pay.
Therefore, estimating the affordability of a loan is simple; for instance, if you want to buy a new car and you know that you will be able to pay the EMI for a five-year period. Once you enter your monthly income, the interest rate your bank charges, and the loan term, the loan amount calculator will show you how much you are eligible to borrow.
Loan Term Calculator
Once you have got the loan, you can choose to refinance your loan at a cheaper interest rate. For this, you have two choices: either shorten the loan’s payback period or lower your EMI. Now, if you have opted to shorten the loan tenure, you can calculate how long it will take to pay off your refinanced debt.
Apart from that, a borrower can also use this Loan EMI Calculator to determine the time remaining on the outstanding principal amount if they intend to prepay an existing loan partially. This way, they’ll be able to plan their loan better.
Interest Rate Calculator
People are now accustomed to buying things in installments, specifically electronics. Using this as a tactic, many merchants and sellers tempt customers to buy from them. This could result in fraud since someone might charge you more than necessary. As a result, you can assess the interest rate charged on the item using this loan calculator. Enter the loan amount, EMI, and loan tenure for that, and you’ll have the results in the span of seconds.
