Every time one plans to go for a loan, they discuss how much EMI they'll have to pay and how long. Sadly, these figures are just an estimate and are never accurate. This leads to wrong numbers, which ultimately affects the plan.
From performing complex calculations within seconds with no chances of error to experimenting with different loan amounts, tenure and interest rates, a simple emi calculator download offers a lot of pros.
What is an EMI?
EMI (Equated Monthly Installment) is a fixed monthly payment a borrower provides to a creditor on a fixed day of every month. This applies to both interest and the principal each month. Further, depending on the tenure, the loan is paid off over a few years.
Here, the borrowers are only allowed to make one payment monthly, and they profit from it as they know exactly how much they will pay towards the loan each month. This helps them to make their financial planning much smoother and effortless. Meanwhile, on the other hand, the lenders benefit from the loan interest, providing them with a constant income flow.
How is a Loan EMI calculated?
There's always a traditional and modern method to solve this. With the advancement of technology, calculations are just a matter of seconds now. Nowadays, no one picks up a pen and a paper to calculate how much EMI they will be paying if they plan a purchase. Instead, one simple download emi calculator app on their smartphone saves a lot of time and offers an accurate figure every single time.
It's been around six months since I've been using the Bajaj Finserv application, as I downloaded it to purchase my bike insurance. I even discovered that they offer various types of EMI calculators (I'll mention at the bottom how you can use this facility).
However, factually, the total loan amount, tenure and interest rate are the top three critical factors of a loan. Therefore, the EMI applicable to a loan varies according to these three elements.
What are the advantages of using an EMI calculator app before applying for a loan?
Never, I repeat, never apply for a loan if you don't know the exact EMI you'll be paying each month beforehand. This is because if the amount is more, it might not suit your monthly financial budget, affecting your overall purchase plan.
- Once you download emi calculator app, it helps you save a lot of time and offers exact figures. This is because it tends to solve all those complex calculations within seconds with zero chances of error.
- It's pretty easy to use as one just has to enter the loan type, variant, amount, rate of interest, and tenor.
- It helps one experiment with different loan amounts, tenure, and interest rates. This makes it easy for an individual to decide the loan amount they should take without causing inconvenience to the finances.
How to easily calculate EMI on your smartphone via an EMI calculator app?
- Download the Bajaj Finserv application from Play Store (Android) or App Store (iOS).
- Sign up with your personal details.
- Click on the top left at the three bars.
- Here, in the menu, you'll see an option of 'Try our Calculators'
- Further, click on 'EMI Calculators for Loans'
- There are three types of calculators available. EMI Calculator, Flexi Day Wise Interest Calculator and Flexi Transaction Calculator
- Proceed further as per your requirements