When it comes to availing a personal loan, it would not be wrong to say that it is not an easy task. That’s Right! Finding the best lender and grabbing the lucrative deal is a time-taking and at times a confusing task. Until and unless you know the best way of availing a loan.
Now that we are talking about applying or availing a credit, it is important that we should talk about other crucial aspects as well. Yes, have you ever wondered about the monthly installments of your loan? The Equated Monthly Installments we are talking about! These installments are the sum of principal and interest that you pay at the time of loan repayment.
Many people at the time of availing a loan don’t pay attention to their monthly installments, hence end up taking a not so worthy deal. Moreover, when you avail a personal loan, it is a long-term commitment of say 4-5 years and if anyhow you defaulted on the EMIs, it would be a big problem in the future. This is the reason that your monthly installments should be pocket-friendly so that you can easily repay the borrowed amount. And, when it comes to calculating the amount, HDFC personal loan EMI calculator is here to help. Want to know what this device is all about and how it functions? Well, just read the article below.
An EMI Calculator is one such magical and smart tool that gives you the exact calculations of your monthly installments in just a few seconds. This time-saving device with its well-designed algorithm and fastest functioning does all the complex calculations at the back-end and gives the exact and accurate results in front of the screen. With the online availability of this device 24×7, it is absolutely easy and quick to know the exact amount of your monthly installments in the least time frame. Gone are the days when people used to do the complex EMI calculations manually with a formula (E = P . r . (1+r)^n/((1+r)^n – 1).
Furthermore, with a change in time a lot of things have changed and so came this brilliant device that lets you the accurate values of not only your monthly installments but also of your Interest Outgo and Total Amount Payable towards a loan journey. With the help of using this tool, it would be easier for you to figure out, whether your monthly installments are going to be pocket-friendly or not. You can plan your financial journey and decide whether you can afford to pay that amount monthly or not.
Let’s just have more clarity on the same with the help of an example below.
Suppose, Akash Verma, a 36-year-old, Sales Manager by profession wanted to avail a personal loan of ₹ 5 Lakh so as to renovate his home. Thus, for the same, he had applied with a lender. After evaluating his profile, the bank decided to give him the loan at an interest rate of 12% per annum for a tenure of 5 years. But, before saying yes to the lender, Akash decided to calculate his EMIs so as to know whether he can afford to pay the same amount each month or not. Thus, he used the calculator and the values of his EMI, Interest Outgo and Total Amount came out to be: ₹ 11,122, ₹ 1,67,333 and ₹ 6,67,333 respectively.
Akash’s monthly salary is ₹ 30,000 out of which he also has a monthly expense of ₹ 15,000 to manage, hence he is left with an amount of ₹ 15,000 each month. So, out of that remaining amount, he could easily pay an EMI of ₹ 11,122, thus he said yes to the lender and had availed the loan. Here, Akash took a calculative decision and planned his finances really well so that he can easily manage to pay an EMI of his loan. But not many people do the same financial planning like Akash did, hence defaulted on their monthly installments. So, to avoid such a scenario, using the HDFC personal loan EMI calculator is going to be helpful for your loan journey ahead.