Why is It Important to Calculate Personal Loan EMI in Advance?

Posted by Rahul Yadav | Posted on February 12, 2019


The need for money can come suddenly and in many forms. They could be through a wedding in the family, an upcoming festival that calls for extra cash, and a vacation you want to take with your loved ones or a medical emergency in the family. In such cases, a personal loan can be your perfect ally when in need of funds. Even before you make an application for a personal loan, you can use a personal loan EMI calculator to find out your exact outgo each month in the form of Equated Monthly Instalments (EMI) and gauge your repayment capability.


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A personal loan for any need

A personal loan is an unsecured loan, unlike a home loan or a vehicle loan. You can use it for any individual or business purposes, so long as it is not speculative. If you have a good CIBIL score, you may want to consider an easy personal loan from a full-service NBFC such as Bajaj Finserv for low interest rates on personal loans. A good CIBIL score is indicative of high creditworthiness that portrays you in good light to a prospective lender.


With customer service at its core, Bajaj Finserv provides online tools such as loan calculators that allow you to determine your ballpark EMI in a matter of seconds, and give you a fair idea of your personal loan eligibility. There are several advantages of using online tools such as personal loan EMI calculators.


Advantages of using online calculators

Firstly, as mentioned above, you get an exact idea of how much of your salary will go into paying your personal loan EMI. Secondly, by using a loan calculator, you can carry out a comparative analysis of other personal products and know all about interest on personal loans. Thirdly, by calculating your EMI in advance, you can adjust your monthly budget to accommodate this repayment. This can help you make regular repayments without burdening your pocket.


How EMI can change

However, when it comes to personal loans, it will serve you well to know that although not mandatory, your EMI amount could change at the time of servicing your loan, under the following circumstances:


  •  Changes in interest rates - Personal loans are usually available on the floating rate of interest. If there are policy changes concerning upwards or downwards revision of short-term interest rates, during your loan tenure, it could affect your EMI.


  •  If you request for a restructure - Sometimes, it may so happen, that you may not be able to continue with the repayments on your personal loan as envisaged at the beginning of your loan tenure. You may then consider approaching your lender to restructure your loan. If the lender finds merit in your appeal, your loan will be restructured in a manner that your tenure is increased and EMIs are decreased to accommodate your repayment capability. Once you are back on your feet, you can request the lender to revert to the earlier arrangement, when there may be a change in your EMI structure again.


Regular repayment of personal loans or any other form of credit goes a long way in maintaining a good CIBIL score of 750 and above (out of 900). This, in turn, puts you in good stead when you wish to borrow further credit for other purposes. The presence of online tools such as loan calculators and additional information online can help you make a quick decision when you need a hassle-free line of credit by way of a personal loan.




Rahul Yadav

About the author

Rahul has proven experience in Digital Marketing and Social Media. He is always willing to learn new digital marketing tools and technology. Rahul has proven track record in social media campaigns e.g. Facebook, Twitter, LinkedIn, Instagram, Youtube, and Google+. He knows how to optimize these tools for marketing purpose. The guy avid drinker of red wine; self-proclaimed steak expert; all-around cool guy. Read more


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