You are aware that several elements will need to be taken into account when applying for a loan. Not only the many aspects but also the calculations that go along with them can be mind-numbing. However, you shouldn't worry because using a personal loan calculator will make the decision-making process much simpler.
We offer an online free Loan calculator that will help you in calculating the interest rate, EMI amount, and other important things. You can easily make your decision with an accurate calculation. On this page, we will discuss how to use a Personal/ online Loan calculator and how it works:
What is a Loan Calculator?
A personal loan from Tool Future, the EMI Calculator is very user-friendly and simple to use. Fill out the form with your selected loan amount, interest rate, processing fee, and tenure. To see your projected monthly payment, click Calculate. Your personal loan's monthly payment is determined by a number of variables, including the loan amount, interest rate, and term. Calculate your monthly payments in advance to improve the way you manage your money.
Overview of Loan calculator
- EMI: Your required monthly EMI to the lender to pay back your personal loan. At Tool Future, you may instantly determine your eligibility for a personal loan based on the output of your loan.
- Total Amount payable: The total personal loan amount that must be paid to the lender is provided by the EMI Calculator tool. The sum of your loan amount (Principal), interest due, and processing costs is your total loan amount due. This can be seen as an amortization table, which is intended to provide you with a comprehensive understanding of your monthly and yearly payback commitments.
Need for an online Loan EMI calculator
The EMI Calculator tool gives the entire amount of the personal loan that must be paid back to the lender. Your total loan amount owing is the product of your loan amount (Principal), interest due, and processing fees. This can be thought of as an amortization chart that aims to provide you with a thorough grasp of your monthly and annual repayment obligations.
Documents required for a Loan
- Identity Proof and Address Proof- Copy of PAN, Driving License/ Aadhar card/ Voter ID/ Passport.
- Income Proof- Salary Slips for the last three months.
- Saving bank account statement or current account statement.
How to use Loan Calculator at Tool Future
If you want to use the online loan calculator, here are the steps for your help:
- First, visit the official website of Tool Future.
- On the homepage, you will see the various tools. Click on the loan Calculator tool.
- The Loan calculator tool will open on your screen.
- Enter your Loan Amount, Loan Terms in Months, and annual interest rate.
- Click on the Calculate button and the loan table will appear on your screen.
Factors that can affect your loan EMI
- Loan amount- The EMI payable rises proportionately to the loan amount. Based on your ability to repay the loan, your relationship with the bank, and other considerations, the lender will determine the maximum loan amount you are eligible for.
- Rate of interest- The EMI is exactly proportionate to the interest rate. The EMI rises in proportion to the interest rate. The interest rate on your loan will be decided by the bank depending on several variables, including your income, credit history, ability to repay, etc.
- Loan Tenure- Your loan term selection will have an inverse relationship with your EMI. The EMI decreases with increased tenure. However, you can end up paying more in interest if you have a longer-term loan. The available credit terms typically range from 12 to 84 months.
Benefits of using a Loan Calculator
1. Calculate the EMI
The calculator also assists in determining the ideal loan term and EMIs. As a result, you will be able to choose not only the ideal EMI amount but also the appropriate number of EMIs based on the loan's term.
2. Loan interest rate
The calculator's ability to determine the interest rate you must pay the lender is its most significant advantage. You can change the numbers and choose the best interest rate for you because the loan interest rate depends on several variables.
3. Loan eligibility
The loan calculator will be able to tell you whether you are eligible for a loan or not because it asks for a lot of information, including your income, credit rating, etc. You'll save a lot of time if you determine your loan eligibility before applying.
4. Financial planning
Before asking for a loan, make sure you have all the necessary information. This will help you better manage your finances. As a result, using a personal loan calculator might help you determine whether to cut back on both your costs and the loan's value.
5. Comparing loan offers
The loan calculator can be used by a customer to compare the loan offers from several institutions. Results include the loan's total cost and corresponding EMIs. This aids in focusing the customer's search for the finest option and enables them to select a loan that meets their particular needs.
One of the main advantages of the EMI calculator is that it saves you time by providing precise results right away. You can calculate your personal loan EMI online, saving yourself the time and effort of having to visit the bank, stand in line, and wait. After that, the loan application process is complete. Additionally, the burden of gathering a ton of paperwork or speaking with a representative to figure out the personal loan amount and interest rates is removed. Since it is available online, you may utilize a personal loan EMI calculator wherever you are in the world, whether you are traveling or just taking a break from work. Simply having a reliable and secure internet connection will do.
7. Easy calculation
Any customer who wants to find out how much their monthly installment will be will only need to enter the loan amount, interest rate, loan term, and processing fee (if available). The home loan calculator will perform the computation and will also reveal the EMI amount.