Independence Day is not only a day to commemorate the independence of our nation but also a day when finance firms shower people with blessings in the shape of financially rewarding offers. Among the numerous offers that they come along with during the time, personal loan offers are one such that tops others in prominence.
Organisations offer you low interest rates, zero processing fees, or easy repayment period in this festival time. But you must be aware of your repayment date before taking such a facility. Your EMI (Equated Monthly Installment) calculation is critical, and with the help of an interest calculator, it’s a piece of cake.
This article guides you through the process of Independence Day personal loan offer analysis, including how many reasons there are why you need to calculate EMIs and how you need to organize your financial repayments.
Why Personal Loan Offers Are Trending On Independence Day
By Independence Day, banks and NBFCs introduce their personal loan offers with good offers. Their personal loans are not secured, i.e., no property has to be mortgaged. Loan amounts received by you can be utilized for anything—medical bills, holidays, wedding, home improvement, or clearing loans—so they are an easy option.
This festive season from Independence Day till the following holiday season is the ideal situation for the applicants to receive nice financial proposals. It is due to the reasons stated below that personal loan proposals have the most reasonable proposals acceptable for the current time of year:
#1. Rate of Interest Offers:
All lenders cut down the personal loan rate of interest, thereby making lending possible.
#2. Exclude Charges:
Prepayment charge, processing charge, and other charges are not included in some lenders, thus minimizing borrowing expenses.
#3. Quick Approval Process:
The majority of Independence Day loan offers typically incorporate quick processes to enable prompt approval of the most appropriate loan for borrowers who seek immediate use of money.
While these advantages certainly allure, the borrower also needs to keep in mind the cost and advantage of availing this facility without any remorse. And that is where your EMI calculation comes into the equation.
The Role of EMI Calculation for Personal Loans
While obtaining a personal loan, the most important thing will likely be the EMI (Equated Monthly Installment). It would be the amount of money you are paying back to your lender each month, that with interest being paid in addition to the principal sum.
If you have a notion of the EMI your loan is going to bear, then you could well evaluate your capability to pay without putting any burden on your side because of the loan.
Main Benefits of an Interest Calculator in EMI Calculation
An interest calculator or an EMI calculator is a handy tool while shortlisting personal loan offers. And here’s why:
#1. Accuracy and Clarity:
Manual calculations of the EMI are bound to be wrong, all the more if there’s a multi-component interest rate structure. An internet-based interest calculator provides accurate figures at the click of one button.
#2. Comparison of Loan Offers:
Shopping on Independence Day—financial shopping, of course! Since there are so many offers for personal loans in the market, you can compare EMIs of different loans and select the optimum.
#3. Customized Planning:
You can experiment placing different amounts and tenures in the calculator. You can then view what kind of loan offer suits your cash position every month and financial well-being.
#4. Charges Transparency:
The calculator provides you with a independent view of your repayment schedule, distinguishing the interest component and the principal component of every installment.
You borrow only and at maximum as much as you can repay comfortably by utilizing an EMI calculator.
How to Use an Interest Calculator for Personal Loans
It is very simple to compute your EMI on a personal loan using an interest calculator. It is very simple to find these calculators, for free, on bank, finance house, and loan comparison websites. This is how to do it step by step:
Step 1: Enter Loan Amount
Your first input parameter is the amount of the loan. This is the amount of money you wish to borrow. Borrow sensibly and borrow as much as you need.
Step 2: Input the Interest Rate
Input the interest rate applicable. This will differ with lender and offer. For instance, there are some Independence Day personal loan offers that provide lower interest rates for a specific short duration of time.
Step 3: Define the Loan Tenure
Choose the repayment months (or years) you want to repay the loan. The longer the tenor, lower would be the monthly EMIs but will cost you more in interest over the entire loan period.
Step 4: Review Results
From the information you’ve input, your desired calculator will show the EMI figure. It will also produce an amortization table, showing how much of each EMI is made of interest and principal. In case of partial disbursal, make sure to calculate pre EMI as well.
Through trial and error with various permutations and combinations of tenures, interest rate, and loan amount, you can determine the value-for-money best personal loan offer for yourself.
The Final Step: Approving Your Personal Loan Application
While Independence Day personal loan offers appear inviting, taking a loan is a monetary burden. Kindly go through the following points before applying:
#1. Check Your Credit Score
Good credit again increases prospects of loan sanction and keeps you getting a lower interest rate for your loan. Keep your credit healthy by making payments on outstanding dues in time and checking your credit report for discrepancies.
#2. Compare Interest Rates
Interest rates differ among lenders despite being promotional interest rates. Use an interest calculator to observe how different interest rates impact your EMIs on a monthly basis.
#3. Know Loan Terms and Conditions
Read the terms and conditions of the personal loan carefully. Ask for any hidden fees, prepayment charges, or foreclosure facility.
#4. Check Repayment Ability
Make sure the EMI is not higher than 30-40% of your take-home pay. It may be too much of a burden on your lifestyle as well as purse.
#5. Make sure the Offer Terms
Offer terms are usually time-specific. Look for things like for how long the Independence Day offer is available and do they have any other offers such as cashback or reward points.
Tips to Cut Personal Loan Expenses
Personal loans can get costly despite Independence Day offers if not managed carefully. Take a glance at some advice to reduce the cost of borrowing:
#1. Choose Shorter Tenure:
Shorter tenures build high EMIs, but they keep the total interest paid low throughout the tenure.
#2. Bargain the Rate of Interest:
As an ordinary customer of a lender or as a person having a good credit record, don’t hesitate to bargain for lower rates of interest.
#3. Refrain from Unnecessary Add-Ons:
The lenders are allowed to sell add-ons or insurance schemes apart from the loan. Make them only when unavoidable.
#4. Pre-Emption Pay at All Times:
Pay pre-emption through bonuses, windfalls, or savings to decrease the principal amount, thus decreasing future EMIs.
Conclusion
Independence Day personal loan deals are a good chance to address your finance requirements at lower rates of borrowing interest. But prudent lending will avoid future finance problems. Considering your EMIs with an interest calculator will help you plan your repayment in advance and choose a loan which will be manageable based on your economic conditions.
No matter if you’re buying something expensive or refinancing debt, look first at your own pockets. This Fourth of July, toast financial freedom to what it’s truly worth—by being smart, intentional choices!