It is important to know that Equated monthly installment (EMI) calculators are basically efficient online tools which help to calculate the monthly installments on your applied loans. Although, they are very easy to use and prove useful, few people still refrain from accessing these calculators. Moreover, there are many who do use them but have several doubts. Let us focus on some of the frequently asked questions about Loan EMI calculator and the features related to it.
FAQs about EMI calculators
1. What is an EMI?
When a person takes a loan, he/she has to pay it back in a process comprising of monthly installments. These installments consist part of the loan principal as well as a part of the interest. After adding these two parts, the total sum is acquired which gets broken up into smaller parts known as the EMIs.
2. What is an EMI calculator?
An EMI calculator is a helpful online tool which informs the borrower about the exact amount of EMI that has to be paid each month. One needs to fill in a form comprising of the necessary details about his/her loan, along with the principal amount, tenure, and interest rate. Hence, the calculator offers the individual with an EMI liability that has to be returned at the end of each month.
3. Where to find EMI calculators?
Almost all banks and non-banking financial companies (NBFCs) manage their own EMI calculators which can be accessed on their respective websites. One should also remember, there are several other independent calculators available on the internet that can be used for assistance. Furthermore, in this smooth technologically advanced era there are EMI calculators available as smartphone apps. One can download and use them effectively free of charge.
4. How precise are the EMI calculators?
In most cases, an EMI calculator turns out to be accurate. You would mostly end up paying the EMI amount which was estimated by the calculator. However, it is advised to always check with your bank/NBFC well before you select a loan. This is due to several factors which can cause inconvenience. For example, there are times when the lenders change their rates of interest at the very last moment. Such an action can impact your EMIs quite significantly.
5. Are EMI calculators and EMI simulators same?
The answer to this is- No! An EMI calculator informs you about the exact amount of money you need to pay each month. On the other hand, an EMI simulator presents an approximate figure.
6. Why should I use an EMI calculator?
The use of an EMI calculator works to offer a realistic look at your personal loan. One must always take a loan which is affordable and comfortable to repay. Further, check the EMI which you have to pay before you access a loan. Also, if the amount seems too big, go for a loan amount which is smaller. This can help you in managing your finances better in the near future.
Benefits of Using EMI Calculator
The function of an EMI calculator is to determine the equated monthly installment without much hassle. One needs to simply enter details such as rate of interest, the period of the loan as well as the principal amount to receive accurate calculations. There are several benefits which a borrower gains through this tool. The prime benefits include:
Reveal Affordability: You can find out whether you are capable of affording personal financial commitments during the overall period of the loan. With the help of an EMI calculator, you can stay informed about the exact amount that has to be paid every month. This proves advantageous to plan personal finances in a better manner.
Different Loan Types: In today’s time, financial institutions and banks offer different kinds of loans to satisfy various necessities of the people. With the help of an EMI calculator, you access the power to find out the precise EMI value for your home loan, car loan or any other personal loan.
Pictorial Representation: The best part is that graphical charts and understandable graphs are available under this tool. Such pictorial information works effectively to educate the borrower about the accurate EMI details.
EMI calculators are available on the internet and are simple to use if you are well aware of the necessary details. So, if you are planning to pick up a loan, be sure you use an EMI calculator. It is a helpful source for containing all your worries under simple mathematics and presenting it to you for further reference. Many individuals have gained through this amazing tool while sitting at home under a private environment. Hence, get rid of your financial worries by learning how much a loan will cost you every month using an online EMI tool.