Planning and managing finances is not an easy task. It is not as easy as just keeping tabs on your daily expenditure and compare it with your monthly income. Additionally, it becomes even tougher if you have availed a loan. With a loan come the added headache of knowing how much EMI you have pay in a month, for how many months do you need to pay it, etc. Well, the best way to manage your expenses and financials is by using a personal loan calculator. Let’s take a look at 10 tings about loan calculator that make it so important:

  1. They are the most accurate tool for knowing the amount of EMI that you will need to pay on a monthly basis.
  2. They are easy to use and do not require any guidance.
  3. You can also use the EMI calculation formula used by calculators:

EMI = [Principal x Rate of Interest x (1 + Rate of Interest)^ Loan Duration in Months] / [{(1+Rate of Interest)^Loan Duration in Months} – 1].

  1. They require minimal personal details, so you can use them just to get an idea without divulging too much.
  2. You can find personal loan calculators on the website for every lender.
  3. Loan calculators also help in determining the perfect interest rate.
  4. Depending on the calculator, you may not have to calculate variables such as taxes, service charges, etc.
  5. Some calculators are for specific loans such as education loan. They also account for moratorium period to provide accurate details to plan repayment.
  6. Depending on the loan, EMIs are calculated through: Fixed Interest Rate Method and Reducing Balance Method
  7. They will help you in determining your monthly expenses for the duration of loan, so that you can manage your financials in a better manner.

Unsecured Loans with PaySense

Now that you know how important a loan calculator is, remember to use it properly before you apply for a loan. Additionally, while your first instinct when applying for a loan would be to go to a bank, you should reconsider. Although it is true that banks have more trust among the people, it still does not hide the fact that they are very slow. Each process for loans in a bank is riddled with redundant procedures and bureaucracies which take up your precious time. Well, your days of waiting are over. Get instant loans from PaySense up to Rs 2 Lakhs, where the approval is completed within a few hours. However, yu need to be eligible for the loan and have necessary documentation with you. Moreover, you don’t need to go to them multiple times. You can apply for and get the loan from your home.