Have you ever found yourself in a situation where you were in urgent need of cash, and you don’t want to cause trouble to any of your friends, family or relatives?Well, it’s not only you, most people face financial hardships at some point in their life. At times like this apersonal loan is the best option that can come to your aid. It requires minimal documentation, has simple eligibility rules and gets processed in a day or two. Whether you need the funds for an emergency purpose or aspirational purpose, you can easily apply for an instant loan through an online loan app.
Availing a personal loan is not only easy but it is also very convenient to repay the loan in small monthly installments. If you apply through an online loan app then you check your eligibility, compare the loan offers and go for the one that best fits your needs. You can also access your loan details through the app at all times. You might also get the loan at a reduced interest rate. Thus, there are many perks to availing a loan through an online loan app, but before applying for a loan you must check your loan affordability.
Loan affordability means knowing the amount that you can easily adjust in your monthly budget to pay towards the EMI. You can use an online loan calculator to know the loan amount that you should apply for based on your monthly income.
Advantages of Availing a Personal Loan
Personal loans are one of the best financing choices for achieving your goals, making large-ticket purchases, or overcoming a financial pinch during a crisis. There are various advantages to personal loans that make them an excellent alternative for borrowers.
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Low Rate of Interest
The interest rate of personal loans is much lower than those for credit cards. This makes your loan highly affordable and your repayment journey much easier.Keeping the interest low, gives you the leverage to choose a slightly longer tenure.
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Nocollateral
One of the biggest advantages of availing a personal loan is that it does not ask for collateral. This allows you to avail for the loan even if you do not have an asset to put up as collateral.
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Multipurpose use
The funds you get from this loan can be used for different purposes. You can choose a personal loan to meet any of these demands, whether you want to pay for an international vacation, buy a gadget, or repay a friend. The best part is that many lenders don’t even ask the reason why you are applying for the loan.
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Easy Repayment
When you apply for a personal loan through an online loan app, you get timely reminders that help avoid late payments. You can also opt for auto-debit facility that can help you manage your finances well. You can also track all your payments through the app.
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Flexible Tenure
A personal loan offers you the choice of flexible tenure. Depending on your requirement and affordability you can choose tenure between 6 months to 60 months. You can also opt for foreclosure of your personal loan in case you want to get debt free.
What Is a Personal Loan Calculator?
A personal calculator is an online automatic tool that helps to calculate the amount of EMI that you will have to pay against the loan every month. With the aid of this tool, you may select the appropriate sum, rate of interest, and repayment period for your needs.
You will be able to precisely predict how the loan will affect your future financial situation and way of living. You may use it to make informed choices on your loan so that you don’t fall into any debt trap.
How to Calculate Your Loan Amount Based on Your Income?
Calculating your loan amount based on your income becomes a very easy with the help of a loan EMI calculator. First, you need to visit your lender’s website or app and find the personal loan EMI calculator.
Then you need to add your loan amount, tenure and along with the rate of interest offered by the lender. Once you have filled in this information, an EMI amount will be generated on your screen. Now, you need to evaluate your monthly expenses and see if this EMI amount will cause any strain on your monthly budget or not. If yes, then you can again change the loan amount and tenure and generate a new EMI. This way, you can come up with multiple options and calculate your loan amount based on your income.
Conclusion
For a secure financial future, choosing the right tenure and right loan amount is very important. You can stretch your loan tenureor opt for a lesser loan amount to get a low EMI which will not have any significant impact on your monthly cash flow. But a longer tenure also means high total interest payout on your loan amount and lesser loan amount might not fulfill your needs. Thus, it is very important to find the precise balance between your loan tenure, your loan amount and your loan affordability. You can check this using an online loan calculator.