The adoption of technology in India’s financial sector has brought dramatic changes in personal loans and the customer segment. While borrowers consider the convenience factors when taking credit, lenders provide benefits like online tools to help make informed financial decisions. A prospective applicant can borrow feature-rich credits using a personal loan calculator from leading NBFCs like Bajaj Finserv in India.
· A recent report stated that borrowers within 18 to 30 years of age are driving the maximum demand for personal loans.
· Their share has increased to 41% over the past 2 years in annual originations.
Bajaj Finserv thus provides several online tools and applications to simplify the loan taking process. If you seek a personal loan at the best rates and favourable repayment schedule, make use of a personal loan calculator online.
Prerequisites of using an EMI calculator
In the beginning, every applicant should ensure to qualify for the unsecured credit following certain parameters. These commonly include:
a) Employment status – Active.
b) Age – 23 to 55 years.
c) Credit score – 750 and above.
d) FOIR – Below 30% to 50%.
e) Nationality – Residing citizen of India.
f) Minimum monthly income – Depending on the applicant’s residential location.
Once you meet the eligibility criteria, arrange the important documents necessary for verification and quick processing.
Using a personal loan calculator online
An online loan calculator is an easy-to-use tool to get a suitable loan effortlessly. Here’s how to calculate personal loan EMI without any manual calculation.
Step 1: On the online calculator, enter your loan details, including required personal loan amount, preferred repayment tenor and the applicable rate of interest.
Step 2: As you provide the data accurately, the online EMI calculator immediately displays the total cost of the loan, EMIs per month and total interest payable. You may also find the result in a graphical representation to understand your interest outflow precisely.
For instance, suppose you enter a loan amount of Rs.10 lakh, and 12% is the applicable rate of interest. Your suitable loan tenor is 36 months. The personal loan calculator displays the following result:
· Equated monthly instalment – Rs.33,214.
· The total cost of the loan (including principal and interest) – Rs.11,95,718.
· Total payable interest upon maturity – Rs.1,95,718.
According to the graphical representation, the principal amount accounts for 84%, while the interest payable accounts for 16%. Tools from prominent NBFCs also provide an elaborate chart of the EMI repayment schedule, which helps you assess your financial capability, credit requirements and repayment plan with accuracy. It also reduces any chances of default and mistakes, which one should avoid when repaying debts.
The functioning of an EMI calculator online
Such an online tool eliminates the necessity of manual calculation and functions on a mathematical formula, i.e.:
P x R x (1+R) ^n / ((1+R) ^n-1) = E
In the above expression, E denotes EMI, P denotes principal amount, R denotes interest rate, and n denotes the repayment tenor.
Once you get a favourable combination, you can proceed to apply for a personal loan online. The Bajaj Finserv Personal Loan of up to Rs.25 lakh comes at a competitive rate and with customised benefits. Eligible borrowers can fill up an online application form with the necessary information and complete minimal documentation easily. Make sure you know how personal loan applications are processed before applying.
Furthermore, existing customers can enjoy the benefit of pre-approved offers on personal loans, business loans, credit cards and several other financial products. These offers ease the credit application process and save more time. You can check your pre-approved offers by using some basic information only.
Personal loans have emerged to be the most viable source of funding for customers seeking big-ticket or emergency credit. In FY2021, India anticipates witnessing further growth in this unsecured lending segment. If you are looking to borrow anytime soon, this can be an ideal time because interest rates are low due to the unchanged 4% repo rate. Remember to use a personal loan calculator beforehand.