A personal loanhas become a simplified service owing to the advancements in the software industry. Earlier, it was a different story altogether when borrowers had to carry a bunch of documents for a loan application and continuously follow up on the loan approval status. However, with digitization, the times have changed and the personal loan service has simplified to a great extent.
Now personal loans are available on an instant basis. Verification is paperless with minimal documentation. What more do we want! In times of crisis, when borrowers are able to raise urgent finance independently, the technology really wins to create a digital platform for offering immediate financial help.
A personal loan comprises three important elements – EMI, interest rate, and eligibility. EMI is the installment to be paid every month to clear the loan, the interest rate is the additional percentage incurred over the loan amount and eligibility criteria give borrowers clarity on the prerequisites required for the loan.
Calculating these three factors before submitting a loan application is an ideal thing to do. The mechanism for calculating EMIs, interest rates, and loan eligibility has been simplified. The personal loan apps and websites have in-built calculators to derive these criteria.
Steps to Calculate Personal Loan EMI, Interest Rate, and Eligibility Criteria:
EMI Calculator:
EMI calculators are freely available tools that help you to derive suitable EMIs for a particular loan amount. EMI calculators perform complex calculations in just a few seconds which otherwise would be time-consuming if done manually. To use the loan EMI calculator correctly, you simply need to fill in the below-mentioned factors:
Interest Rate Calculator:
The interest rate and loan tenure majorly influence your loan EMI. The loan interest calculator works simply on two major factors: principal loan amount and loan tenure. Use the interest calculator to know how much interest you are paying.
With reasonable interest rates and flexible timelines, EMIs can be managed easily.
Loan Eligibility Calculator:
Every borrower’s eligibility is checked before applying for a loan. A loan eligibility calculator confirms whether a person is eligible for a personal loan or not. Open the online loan eligibility calculator to enter the following parameters:
• The Age should be between 21 - 58 years old
• Net monthly income - minimum net monthly earnings should be at least Rs.15,000
• Job/Profession – Borrowers should belong to a public/private sector company
• Location or the city where the borrower is residing. Some locations are restricted for persona loans.
• Previous financial obligations, if any
So, the above three factors relevant to personal loans can be easily calculated using the relevant instant calculators available freely on the digital cash loan apps and official websites.
