Loan parameters needed for using the EMI calculator:
- You need to know the loan amount, processing fee and the interest rate of your car loan, home loan or personal loan. If you plan to prepay your loan, then figure out the exact or approximate amount you intend to prepay and the periodicity of such payments depending on your loan agreement.
- Use the sliders and input boxes provided in the calculator to key in or match these loan parameters.
- The calculator will then work out the exact pattern of your loan repayment. Aspects such as the amortization table, the total interest outgo, the timelines of your loan repayment etc. will be displayed in accurate detail enabling you to make smart loan decisions!
Read on to learn how you can figure out the functionality of the different loan parameters and what role they specifically play in your loan repayment pattern. EMI calculator is a fantastic tool that can help you manage the various loan parameters to become debt free in the most efficient manner possible.
- Loan Amount: Enter the Personal Loan amount using the slider or the edit box you wish to borrow. For better financial planning our monthly outgoings (EMI?s) should not be more than 40% of your monthly income.
- Interest Rate: This is the Interest rate that is charged on the money borrowed. This rate is monthly reducing the balance.
- Tenure: Select the period for which you wish to take the Personal Loan. Generally, personal loan tenures range from 1 to 5 years.
- Processing Fees: Bank charges a processing fee at the time of disbursing a Personal loan. Processing fees typically vary between 1% to 5% of the loan amount.