A Personal Loan is an unsecured loan that is available at attractive rates from many financial institutions such as banks and NBFCs. A Personal Loan is fit to finance a long vacation, a big-fat wedding, higher education, home improvement or medical emergency, etc. The best thing about a Personal Loan is that you can keep your savings as it is. Instead take a loan to handle various requirements of your life.
But before you apply for a Personal Loan, use Loan calculator to get the exact amount of EMI. How does it work? If you want to take a loan of Rs. 1.5 lakhs at 12% rate of interest, then what will be your EMI? You can calculate it traditionally with a paper or pen or with the help of an excel or you can simply use a Personal Loan calculator to find the exact EMI amount will be Rs. 12K per month.
How to use it? Simply, put three inputs on loan calculator- loan principal, loan tenor and the rate of interest, you can get the output, your EMI. By doing all forms of permutations and combinations of all three factors, you can see what is suitable for you. Once you are satisfied with the loan principal amount, affordable interest rate and loan tenor, then apply for a loan. You can visit the website of the financial institution to find the loan calculator.
You also need to calculate your eligibility. So, use an eligibility calculator to find how much money you can avail as a loan. It depends on factors like age, income, place of residence, outstanding loans, etc.
Once you qualify all these factors and get the loan amount you want, then you are eligible for a loan. If you are planning to apply for a loan of Rs. 3 lakhs, but you are eligible for Rs. 2 lakhs only, then you have compromise on your demand.
