Is Taking Out a Personal Loan a Good Idea? Is a Calculator Necessary? Find out right now!

A personal loan is an easy and convenient financial tool that you can use to meet your emergency or aspirational needs. Today, applying for an instant money loan is easier than ever with loans available in a few clicks through online loan apps. Not just that, personal loans also comes with flexible repayment terms, affordable interest rates, unrestricted end-use and zero collateral. In recent years, the terms of personal loans have shifted from being lender centric to customer centric, which means these loans are designed to help the borrowers. Hence, availing an instant money loan is a smart move to manage your finance, but you will have to handle it well.

 However, before you decide to avail a personal loan, you must know all about the obligation that you are signing up for. An instant cash loan is a debt instrument which means you have to repay the loan amount to your lender along with a certain amount of interest within a specified time period. Thus, one of the most important parameters that you must check about while applying for a personal loan is the interest rate. Based on the interest rate and your loan amount, your loan tenure and your total interest pay out would vary.

An online loan calculator helps you compare different interest rates of personal loans from varied lenders. And you can then check the change in your EMIs and have a better idea about your monthly loan expenses.

When to Apply for a Personal Loan

Whether you want to clear your existing debts or fund your marriage plans, a personal loan comes handy. It can help you meet your financial obligations without straining your budget or liquidating your cash. Here are some of the situations when getting a personal loan makes sense.

• Consolidate your debts

If you have a number of debts on multiple credit cards or loan accounts then you can consider availing a personal loan to consolidate all your debts in one single account. This not only reduces your total interest pay out but also helps you manage your EMI payments with one single monthly payment.

• Finance your education

While there are education loans available to finance your higher studies, the eligibility criteria for such loans are very high. You need to get through an esteemed university and offer a guarantee against the loan to get approval. Also, an educational loan does not cover all the costs that come with studying out. For example, flight tickets, mess charges, stationaries etc. can be taken care of with an instant cash loan.

• Refurbish your Home

Home décor projects can be a costly affair.  And an instant money loan can help you renovate your home without compromising because of a budget constraint. Whether you want to carry out repair works or deck your house with new furniture, paint the walls or change the lighting, a personal loan can help. Timely renovating your home can improve your quality of living and maintain the value of your property.

• Fund your wedding

Wedding is an expensive affair. There are many last minute unprecedented costs associated with a wedding that can take away your peace of mind. With an instant cash loan, you can take care of all such necessary costs. You can use the loan amount in any way you see fit. Be it booking your venue or decorating the area, taking care of guests or hosting an event.

• High-end Purchases

Today, many people buy high-end gadgets or appliances on credit card. But it is always a better idea to get these high-end products on a personal loan as the rate of interest on a personal loan is much less than that of a personal loan. Whether it is a mobile or a laptop, freeze or washing machine, opt for a personal loan to fulfil your aspirational needs.

How a Personal Loan EMI Calculator Helps

While a personal loan can be helpful in meeting your financial obligations, it is important to research and analyse the offer before signing the papers. You can use a personal loan EMI calculator to understand the obligation you are getting into.

Here is how a personal loan EMI calculator can help –

• Budgetary Planning

An EMI calculator can help you with the exact EMI amount that you would be paying every month towards your loan repayment. Knowing this amount will help you plan your monthly budget well.

• Loan Duration

Using an EMI calculator, you can opt for the best tenure for your instant cash loan. Depending on how much money you need and how much you can spare on EMIs, you can determine your loan tenure. You can try different combinations of loan tenure and amount on the online calculator to find a suitable loan amount and tenure.

• Compute your Interest Rate

Before availing an instant money loan, you should check the interest rates offered by different lenders. An online loan calculator can help you understand the implication of different interest rates on your EMI and loan tenure.

• Determines your Eligibility

With an EMI calculator, you know whether you are eligible for a particular personal loan or not. You only have to enter the mandatory basic personal details to check your eligibility.

Conclusion

Thus, an instant cash loan is a very helpful financial tool that you can use to meet your financial needs. It can help you handle any financial crisis with ease. However, an instant money loan is a debt instrument and you must be very cautious while considering a loan. Thankfully, there are many financial tools like an online loan calculator that can help you make an aware financial decision.