A loan calculator helps you plan your loan repayment by calculating your EMI in advance. A loan calculator also enables you to analyse whether you can afford a loan. Hence, borrowers are often advised to consult a loan calculator before applying for home loans, car loans, personal loans, education loans, etc.
How does a loan calculator work?
A loan calculator calculates the monthly EMI of your loan in advance. It is important to note that a loan calculator does not provide a rough estimate of your future EMIs but calculates it precisely based on the inputs provided by you.
How to use a loan calculator?
Most loan calculators can be found online and are free of cost. Many banks and financial institutions have created loan calculators, which anyone can use before applying for a loan. A loan calculator requires you to enter some details to develop an accurate figure for your future EMIs.
While these details change based on the type of loan, some common details that one needs to provide to a loan calculator are interest rate, loan period, and loan amount. IDFC FIRST Bank’s personal loan EMI calculator also allows you to use sliders to enter these details.
What are the types of loan calculators?
Loan calculators can be found for every type of loan. It includes home loan calculators, car loan calculators, two-wheeler loan calculators, education loan calculators, and personal loan calculators. Check out IDFC FIRST Bank’s list of financial calculators to calculate your EMIs more accurately.
How does a personal loan calculator help?
A personal loan calculator helps you calculate the EMI for your future personal loan. Here are the benefits of using a personal loan calculator before applying for a personal loan:
- Prior knowledge of EMI: A personal loan EMI calculator can help you estimate the amount you need to repay the loan every month.
- Helps you manage your finances: Once you have the details of your loan repayment cycle in advance, you can easily plan your other monthly expenses.
- Choose your preferred loan tenure: Knowing the principal amount and rate of interest can help you select the loan tenure that suits you the best.
- Accuracy: IDFC FIRST Bank’s personal loan EMI calculator is error-free and offers accurate results within seconds.
How to apply for an instant personal loan?
To be eligible for an instant personal loan, a borrower must meet the following eligibility criteria:
- If the borrower is a self-employed individual:
- Minimum age: 25 years
- Maximum age: 65 years at the time of loan maturity
- The business must have been in existence for a minimum of 3 years.
- If the borrower is a salaried individual:
- Minimum age: 23 years
- Maximum age: 60 years at the time of loan maturity or retirement, whichever comes first.
- The minimum monthly salary must be ₹ 20,000 per month.
Therefore, it is imperative to use a loan calculator before applying for a loan. Knowing whether you can afford the loan can prove beneficial and help you better plan your finances.
