A personal loan can be a lifesaver when you urgently need money to meet any financial obligations at hand. If you are looking for a reliable lending institution that can offer your immediate assistance, opt for the Fullerton India instant personal loan.
The best thing about this service provider is that it offers a user-friendly online portal to accept your loan request with minimal documentation requirements. To make your experience even better, it also provides a personal loan EMI calculator on top of the webpage. You can use this to estimate the amount you will need to pay in installments.
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How Does a Personal Loan EMI Calculator Help?
Whenever you take a personal loan from a lending party, you need to pay it back within a predefined period. You can either pay in full (a lump-sum amount) or in installments based on your preference and suitability. Most people opt for a monthly installment option to repay the loan amount. A personal loan EMI calculator allows you to check the actual installment amount that you will need to pay. This gives you a fair idea as to whether taking a personal loan would be a feasible option or not.
To calculate your Equated Monthly Instalment (EMI), you need to have inputs like the total loan amount, total duration, and rate of interest applicable on your loans. You can easily get your final output in the form of "calculated EMI" by entering the required inputs. EMIs can also be calculated manually, however, using an online EMI calculator is more reliable and convenient as it helps to avoid any random calculation errors and give accurate results. Let's delve deeper into how the calculation takes place.
A personal loan EMI calculator allows you to check the actual installment amount that you will need to pay. Pixabay
Maths Behind the Calculation
The mainstream digital or online personal loan calculators use the following formula to calculate the EMI that borrowers need to pay.
E = P * r * (1+r)n / (1+r)n-1
'E' in the above-mentioned mathematical equation stands for the monthly amount payable by the borrower (EMI).
'P' denotes the principal amount or the total loan amount borrowed from the lending party.
'r' denotes the rate of interest that will be charged on your loan monthly. It is very subjective and depends on your credit history and relationship with the lender.
'n' here signifies the total duration for which you have taken the loan, you will need to repay the borrowed amount in this course.
Personal loans can be used for several reasons. Pixabay
Let us take an example to understand the calculation process pragmatically. Suppose that a borrower 'A' has applied for a quick personal loan of Rs. 5,00,000 to be repaid within 5 years (60 months). Let's assume the interest rate charged on A's loan amount is 15%. As per the mathematical formula mentioned above, P = 5,00,000, r = 15% (0.15), n = 60. After applying the formula, EMI will be equal to Rs. 11,895.
Computing EMI using the Fullerton India EMI Calculator
The Fullerton Indian EMI calculator is an online tool that facilitates EMI calculation after taking essential inputs from you. You need to follow the below-mentioned steps to find out your EMI amount.
Step 1: Visit the Fullerton India personal loan webpage by clicking on this link.
Step 2: Navigate to the top of the page, you will find an EMI calculator
Step 3: Put in the total loan amount that you want to apply for in the 'Loan Amount' field. You can also use the slider to select your amount conveniently.
Personal loans do not restrict the borrower as to how they can use the funds. Pixabay
Step 4: Enter the interest rate offered to you using the same process in the 'Rate of Interest' field.
Step 5: Now add the total duration for which you will be taking the loan in the "Loan Tenure' field.
After you have completed the above steps, you will be able to easily find out the amount (EMI) that you will need to repay every month. You can put different values in the loan amount, rate of interest, and loan tenure field to find out EMIs for those values. You can easily click on the 'Apply for Personal Loan' button available next to the calculated EMI section for loan inquiry.
Why Opt for a Personal Loan?
Personal loans do not restrict the borrower as to how they can use the funds. You can use it to pay an emergency medical bill, tuition fees, home renovation, vacation, etc. The flexibility offered by a personal loan is unmatched, making it an excellent choice for managing current financial needs. In addition to this, personal loans are unsecured, meaning you do not have to pledge any security to borrow the loan amount. This is a boon for borrowers who don't have any security to borrow funds. Given the current pandemic scenario, one can consider opting for a personal loan to finance any emergency expenses, including your medical bill.
(Disclaimer: The article is sponsored and hence, promotes some commercial links.)