Applying For a Personal Loan

Once you have decided to apply for a personal loan, it’s natural to worry a little about its application procedure. But this shouldn’t bother you too much since applying for a loan is quite easy. You only need to produce the required documents to obtain a personal loan. Since these personal loans are unsecured loans, you need not even worry about any collaterals. You only have to apply for the loan and pay the estimated Equated Monthly Installments every month, and that’s it!

Before you apply online for a personal loan, some other things to keep in mind are:

  • Credit Score: You need to ensure that you clear all your pending dues before applying for the loan
  • Interest Rates: They can vary as per the amount of the applied personal loan, total salary of the applicant, and reputation of financial institution
  • Paperwork: This usually includes identity and address proofs, although additional requirements may vary from an institution to institution

However, the first thing to be aware of are Equated Monthly Installments or EMIs, in simpler terms. So, what are EMIs? An EMI is a fixed payment amount made by a borrower to a financial institution at a specified interval of time. EMIs are used to pay for both interest and principal amount over a specified number of years (or months), in order to repay the borrowed amount of funds.

It is actually that simple. Personal loans, with their easy repayment method, have given people the power to purchase what they want when they want it, for as long as they can pay off the loan. It proves to be quite advantageous, especially when it comes to purchasing a house, a car or other expensive items.

The freedom that comes with EMIs is one of the biggest benefits. The time tenure is chosen according to the convenience of the borrower and rules of the financial institution. Once the tenure has been chosen, however, it is then fixed and needs to be strictly adhered to. Failing to make regular payments for the same could lead to several problems occurring in future.

Understanding how EMIs work is essential and crucial because it affects the amount of personal loan you choose to opt for. One way of doing so is, using the EMI calculator, which will help you accurately calculate your EMI amount. This is definitely not as difficult as using a set of formulae to calculate the same. With the help of this calculator, you will know exactly how much you need to pay per month in a matter of a minute.

There are three steps to follow:

  1. Enter in your desired personal loan amount (For example, INR 70,000)
  2. Enter in the loan tenure (For example, 8 months)
  3. Enter in the interest rate (For example, 13%)

The EMI calculator will calculate your total payable amount, your monthly payment, and the total payable interest. You can be sure of the accuracy of its end-result. This easy-to-use personal loan EMI calculator ensures that you find out your EMI amount in a hassle-free manner and aids your decision in choosing the right loan plan.

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