Personal Loans are credit options provided by Banks and NBFCs that can either be a lifesaver or debt trap depending on how one effectively gets it structured. This is easier said than done because every rupee matters and it’s most likely that in time of need you may tend to overlook a lot of factors which can make or break your wallet. But by planning the same by using simple but effective tools like Personal Loans EMI Calculator free you can get to be the best of them.
While all the Banks and NBFCs want to maximise their profits with every loan they sanction, your aim should be to get the best possible deal and more from them without compromising on your requirements and situation. To do that we do not need a quick course to become a Chartered Accountant but rather just pay attention to some basic factors while availing a personal loan. After you apply at least some of the below suggestions, just enter your credit requirement details on Personal Loans EMI Calculators.
Suggestions to avail personal loan are:
Avail the lowest amount that you can make do with
The chances are that you may be eligible for a much higher loan amount than you may really require. Your face may glee to see the value but that’s only at the beginning as, during the process of paying back, you would regret if not wonder what you were thinking as the repayment period and the interest paid will make you cringe. Instead, stick to what amount you exactly require as that itself after the interest will be a lot to repay.
Take the least amount of time to repay the Personal Loan as possible
A common observation that you may have come across while going through loan offers is that if you choose a long term loan that is above 2 years both the EMI amount and the interest rate offered is lower. But in truth, the amount of interest paid becomes significantly higher which can be clearly seen by using Personal Loan EMI Calculators which specify details like payable interest amount and total amount. Always make a wise decision of choosing short terms and pay off your loans early and maybe get an asset-based one like home loan for the long term.
Try to get the lowest payable interest rate by looking around or using trusted partners
As mentioned before, in the event of urgency or desperation you may close the loan deal with anyone who may claim to offer the lowest interest rate and deductions. But you can never be sure unless it is compared with at least a few providers. Some may showcase a low-interest rate at the time of application but later specify that you are not eligible for it while others may offer you a low rate but have very high charges for processing, documentation verification etc. Never shy away from at least browsing the range and charges that you may incur with a few providers. At Vishumoney, we ensure that you get the lowest rate by getting deals from all the providers that you are eligible for.
Keep your Credit Score to the highest value for the best deal
An important factor that will firstly even check if you are eligible for a personal loan is your credit score. Hence it is firstly very important that you have a credit profile which is created if you pay Income tax, avail product EMIs, use Credit Cards etc. So every such person will have a Credit score out of 900 and the higher it is, the better are your chances of getting loans. Typically a good score is about 750 plus which you can maintain by ensuring that all the payments are paid on time. When you apply for a loan with a bank or NBFC, they do a Credit check. The process also deducts 5 points from your score every time you check so keep do it only with the right providers.
Pay off as much additional amount as you can before closure
As calculated using the Personal Loan EMI calculator you pay an EMI every month till the tenure of the loan to pay it off and they earn the interest amount as revenue for providing you with the loan. But there may be circumstances wherein you may get some additional funds or availed the loan as an emergency and to pay it off fully or partially. Thereby the foreclosure section of any loan and especially personal loans is very important because no provider would just accept the additional amount and reduce your EMI or close the loan just like that. For the loss of revenue, they were to receive something known as foreclosure charges is levied. Ensure that is low by choosing the right provider but nevertheless pay it off as still the interest payable otherwise will always be higher. You can even calculate the same easily using Personal Loan EMI Calculators for accurate figures.
How to effectively use the EMI Calculator to Plan your Personal Loan needs
Keep a priority on one of the factors(preferably repayment period)
Fix the maximum amount you can repay per month as EMI
Input small changes in the interest rate offered by different providers to see it impact
Calculate the reduced EMI on possible planned prepayments
Add the charged fees & other deductions for a more accurate picture
In the end, make sure that the Personal Loan that you avail structure has the amount you require at the lowest interest rate with an optimum payback time for it to help you and not put you in hardship.
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