If you borrow money from a bank or a financial institution, it is to be repaid in the form of an EMI. The monthly payments will make it easy and convenient for you to repay the loan in due time. However, most of us are not aware of the benefits of an online emi calculator. EMI calculations are complicated and this is why most borrowers prefer using an EMI calculator available online. It is the easiest method of planning your finances. Using a loan EMI calculator has several benefits and the output is always correct. You only need to provide the loan amount and tenure to get a quick estimate. Here is how a loan calculator helps you plan the finances with ease.
1. Pick the right lender
Before you sign on the loan documents, you will definitely approach different lenders. Every lender has different rate of interest and with an EMI calculator, you will be able to choose the right lender. When you use the calculator, you can compare the EMI amount in case of different lenders and then make the decision. It will help with comparative analysis for choosing a lender.
2. Calculate goals
Financial planning is about reaching your short term, medium term and long term goals. It will help you prepare for significant life events and an EMI calculator will make the process simple and quick. Whether it is for your child’s education or for a a wedding, you can use the calculator to estimate the amount of money you need to deposit to reach the target corpus. You need to repay one loan before applying for another and the calculator will help you do so within the tenure.
3. Stick to the budget
All of us have a monthly budget based on our income and expenses. When you agree on an EMI amount, you need to keep the monthly inflows in mind. The EMI should not put a strain on the budget as it can increase the chances of a default. Hence, before you sign on the loan documents, use the EMI calculator to understand whether it fits into your budget or not. You should not stretch your budget in order to make the EMI payment each month.
4. Convenient decision making
The calculator is easy to use and you can get an EMI estimate without the help of a professional. It is available for free online and only requires you to provide the loan amount and tenure. The calculator will make decision making easy and quick. You do not need to follow the complex mathematical formula to get an EMI estimate.
5. Pick the right loan product
There are several types of loan products available in the market today. By using an emi calculator excel, you will be able to choose a loan product that fits your needs. The rate of interest in every type of loan is different and with the use of this calculator, you can make the right borrowing decision.
The loan interest calculator is easy and convenient to use. You only need to provide the loan amount and tenure to get a quick estimate. It will help make the right borrowing and financial decisions.