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    Dos and Don'ts of Using Personal loan EMI calculator

    A personal EMI loan calculator is a nifty device which helps gauge the monthly payout that you can comfortably disburse to your lender against the money borrowed. While the tool certainly makes availing the loan easier, there are certain aspects one must keep in mind before taking the plunge.

    Planning to apply for a loan to raise money for your personal needs? However, before going ahead with the financial transaction, it’s important to ensure you are eligible and have the repaying capacity for the loan. An EMI calculator can help make an informed decision. The wonderful tool provides a quick estimation of your monthly instalments so that you can organise your finances effectively. That said there are some Dos and Don't of using EMI calculators that should be factored.  Read on to learn more.

    1. Loan Principle:
    Make sure you have a rough estimate of the principal loan you want to acquire from a bank or financial institute. It is important that the amount is realistic and well within your budget.  Also, don’t forget the processing fees. The inputs will convey a pretty accurate approximation of the EMI’s you will have to dish out every month. 

    1. Loan tenure:
    All banks and reputed financial establishments have EMI loan calculators to help determine quick estimates of the monthly instalments. It is imperative to set a realistic timeline to repay the proposed loan you are eyeing. The personal loan EMI calculator will help out in determining your payment scenario so that you can plan your finances.

    1. Interest rate:
    It’s no big secret that the interest rate varies from bank to bank. It usually hinges around your credit score and the amount you are looking to borrow.  Most money lenders provide a tentative figure of the prevalent interest rate on their web portal.  Opt for an average rate to give you a better idea of how things will pan out.

    1. Adhere to one estimation:
    Do not adhere to a single estimation. Given that financial establishments tend to offer different interest rates and EMI routes, it is vital to explore various options and take a crack at a couple of loan calculators. This exercise will help in finding a monthly payout that suits your pocket. 

    1. Take its word as law:
    Sometimes the EMI calculator exhibits fairly reasonable estimates. Remember, the tool can only impart a speculative rate of interest and EMI, but the lender will allot the actual figure. The estimated statistics should be used as a reference and not taken as the final word.  

    1. Try just one option:
    When using a loan EMI calculator don’t just dabble in one. In fact, take a shot at several versions on independent sites to figure out what principle amount, tenure and interest rate might work best for you. 

    An EMI calculator is unquestionably a valuable measure that helps understand the loan procedure better. Bear in mind the above dos and don’ts of using the calculating tool.  They will come handy in the plan and preparation for the loan application beforehand.

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