Applying for an online personal loan is much less tasking than physically going to a bank to request a loan. You can also calculate the loan EMI and interest rate using online calculators. They offer information on the best loan plans with different interest rates.
Interest rate is the amount lenders charge to borrowers for granting the loan. It is expressed as a percentage of the principal, also known as the original amount borrowed. Generally, borrowers need to look for the lowest interest rates available. It helps to reduce the total amount of money to be paid at the end of their decided tenure.
Conversely, lenders try to find higher interest rates for more profit. It is essential to research and find the best interest rate before applying for the Best Personal loan. Interest rates are charged annually but can also be levied monthly, daily, or any other period.
Using the personal loan interest rate calculator
An interest rate calculator is an indispensable tool for any loan applicant. You can use it to apply for a personal loan or calculate the total amount you need to pay.
A personal loan has two components. There is the principle which is the amount being borrowed. Then there is the interest, which is the cost of borrowing. Before opting for a loan, know how much you are accountable to pay as interest. You can easily find this out using an interest rate calculator. It ensures quick and error-free computation of interest and EMIs.
You have to enter your loan amount, the quoted interest rate, and the repayment tenure. After inputting these determinants, click on calculate and gain information about details of your EMI amount, the total cost of the loan with interest, and more.
Benefits of using the personal loan interest rate calculator
Some benefits of using a loan interest rate calculator are –
- It is a platform that acts as a reliable resource to remain aware of your outstanding liabilities.
- It also helps to calculate the bank interest rate. In this way, if you have used credit from a bank, you can repay your loan in time to make sure your CIBIL score does not suffer.
- It helps to plan which EMIs have more priority and which can wait for later.
- It helps save time, eliminates errors, and enables you to stay on top of your financial situation.
How to apply for an online personal loan
A personal loan is an unsecured loan that does not require any collateral in exchange for the amount borrowed. Getting a personal loan online is an easy task that takes just a few steps. All you need to do is access an online form and enter the mobile number followed by the password sent to you. Next, share your basic information, which is checked for approval. Lastly, select the loan amount you wish to borrow.
When talking about loans, the most important word is EMI. A Personal loan Calculator calculates your EMI according to the information you provide. You need to enter your loan amount, interest rate, and tenure. With these three inputs, it calculates the EMI to be paid. Then it delivers the result on the same page in less than a minute.
Personal loan interest rates
Most banks offer personal loans at competitive interest rates that start at 8%. There are other charges, namely the processing fees, EMI bounce charges, penal interest, and document/statement charges that you will have to bear. Since the personal loan is available without having to pledge an asset as security, the interest rate is slightly higher than secured loans.
Final thoughts
The personal loan rate of interest calculator is quite valuable for those who apply for multiple loans simultaneously. This provision renders it simple for them to track the various EMI payments, which would have been difficult for them otherwise. So, if you are interested in applying for a personal loan, learning how to use this calculator could be truly beneficial for you.