In modern days, personal loans can be lifesavers for those who find themselves in a financial crisis. Also, with personal loans, you can finally buy the things that you’ve been eyeing for months. But before applying for personal loans, you must be aware of your financial status. EMI is the amount of money that has to be paid every month by the personal loan borrower. It is necessary to keep track of the money you are spending so that you don’t face another financial crisis.
Ways to Calculate your Personal Loan
You can easily calculate your loan expenses through personal loan EMI calculator. We all know that financial institutions use a specific mathematical formula to calculate interest rates. It is tedious to calculate with the formula and you can make mistakes. You don’t have to worry because the personal loan EMI calculator makes your job easier by showing the results within seconds. You just have to enter the interest rate, amount of loan sanctioned and the duration of time through which it is to be paid.
The calculator is available online on various websites. You simply have to insert all your details of personal loan so they can calculate your monthly interest rate. Checking out the amount before applying for your loan helps you manage your expenses and understand how much you need to spend. Personal loan EMI calculator applies the formula E= P*r* (1+r)^n /((1+r)^n-1), where E is the EMI, P is the principal loan amount, r is the interest rate that is calculated monthly and n is the duration of the personal loan. If you’re still in confusion, know more here.
How to keep a record of your personal loans
Constantly check your documents: Always keep a track of your personal loan documents. Check them from time to time for pending payments. Call the authorities if there is some mismatch in the documents stating the details on the personal loan.
Check the EMI calculator regularly: Keep checking the monthly interest rates regularly through personal loan EMI calculator. Knowing how much to spend for the month can help manage your finances better. It is also a reminder that you have payments to make for this month.
Keep your documents in order: If you have applied for more than one personal loans, keep your documents in order. Keep them in separate folders so you can quickly check them whenever you require. It will also help you keep track of all the payments you have to make.
Keep checking your loan status: If you’re someone who is awaiting your approval of the personal loan, then you need to be awareof its status. There are many ways to check your status. Nowadays loan providers can provide your personal loan details in exchange for your number or document ID. It can be checked online. You can also go to the institution where you applied for your loan and ask them directly.