Know your exact monthly repayment before you take a personal loan

4 MinsMay 5, 2021

Alisha Joshi is planning to take a personal loan. But she is worried the monthly repayment may be too high for her and may stretch her budget. How can she find out the exact monetary impact before she finalises the loan?

All Alisha has to do is check an online Personal Loan EMI Calculator, which will give her give her details about the interest repayment-both monthly and over the entire tenure of the loan, how she can adjust the tenure and EMIs to fit her budget and so on. She checked Axis Bank’s Personal Loan calculator and it answered a lot of her queries.

How does the calculator work?

Alisha has to feed three critical variables into the calculator to know the financial implication of her loan.
1.  Loan amount
2.  Loan tenure
3.  Interest rate – The bank will charge the personal loan interest rate based on Alisha’s, income, employment status, credit profile and other factors.

What are the benefits of using an online personal loan calculator?

This calculator's fundamental function is to calculate the EMI outgo each month. But apart from this, Alisha gets other benefits such as:

• Accurate results
  When doing manual calculations, there are chances that one may make mistakes. But with a loan calculator, Alisha can be assured that her calculation is accurate.
• Allows you to compare variables
  Alisha can change and compare the different variables of her loan to determine which combination works best for her. For instance, she can check the monthly EMI and the total interest she would need to pay over the entire loan period, for different tenures. Say, 3 years or 5 years and decide on her loan tenure accordingly. She can also check the impact of a higher or lower loan amount, before deciding.
• It makes loan planning easier
  Alisha can refer to the amortization table of the calculator for a year-wise plan of repayments throughout the loan tenure. As she will get to see the exact amount she needs to pay each month, it will help her stay within her budget and stay on top of her liabilities.