With the advent of technology and the emergence of Fintech companies, the loan application process, grant and repayment have dramatically streamlined. Several Fintech companies have emerged in the last decade, and it has evolved into a new ecosystem wherein the whole process is online, and you can get the entire picture of your loans in a couple of minutes. Earlier, there used to be a long and complex process for calculating the monthly EMI but not anymore. The blend of Finance and Tech has helped in bringing such software that makes the process damn fast. One of the best things about them is that they consider a lot more factors than any physical method of calculation. Another advantage is the incorporation of new financial tools and modification of existing tools.
The need for EMI calculator
The Equated Monthly Instalments or the EMI helps the loan taker assess the monthly payment amount, which makes it possible to adjust the loan rate or the payment cycle. The education loan EMI calculator helps make an informed choice and choose the right financial institution for the study loan. Since EMI is a monthly paid amount, it must be assessed beforehand as the ability to pay differs from one individual to another. Some choose to pay amounts in bigger installments, while others may choose to pay in small installments over a considerable period of time. It is an entirely variable aspect that solely depends on an individual’s financial capacity, and thus the financial feasibility of EMIs must be considered with utmost clarity.
The rising cost of education has raised the need for financial literacy for a commoner. The cost of education abroad involves spending a considerable amount, and an online tool helps ease this problem. Proper financial management is a must since the cost of education in a foreign country is way more expensive than in India. And in most cases, a student has to pay the amount after completion of the course, so it’s always advised to have a loan amount at a feasible interest rate and repayment cycle.
Advantages of using EMI calculator
There are several EMI calculators available online. One has to enter a few details like the principal amount, repayment time period, rate of interest, and one can get the approximate EMI with a click. The EMI thus calculated is mostly close to the original EMI, and there is only a slight change in the payment structure. The software accurately considers all the factors and gives the most consolidated numbers on the monthly EMI to be paid. An informed choice in the initial stages of a loan application helps save a lot in terms of future repayment of loans.
The advantages of using an EMI calculator
Simple Interface- Even for an educated section of people, understanding EMI calculation dynamics can be a tough nut to crack. But with the EMI calculator, it isn’t an uphill task anymore, and just by entering a couple of details, one can get the exact picture of the EMI. The details that are to be entered only include essential information.
Fast access to details on EMI- Earlier, there used to be many factors that have to be considered, and everything was on paper. With the advent of this software, the EMI calculation can be used with much ease, and even a layperson can know the exact amount that has to be paid in EMI for abroad education. The abroad education involves a high loan amount; thus, knowing the exact details is imperative to a loan applicant.
More information output with less information input- The amount of information that has to be furnished at the time of calculating the EMI only includes the principal amount, rate of interest, and the repayment time period. With this information, you can get the details on any of the EMI calculators available online.
Customizable interest rate options- Knowing the interest rate helps an applicant in making an informed decision. Still, access to varying rates of interest on loan amounts makes them take a wise decision. The access to dynamic interest rates with a click helps loan applicants in assessing the change in the amount to be paid in interest. And how a slight change in the interest rate or loan tenure affects the interest amount.
No cost involved- One of the best features of an online EMI calculator is that there is absolutely no cost involved. A loan applicant can check the EMI as many times they want unless they get a good combination of the interest rate, loan tenure, and rate of interest. This gives a sense of freedom to customers as going physically to a bank and asking for multiple interest rates can be really taxing work. With an EMI calculator, one can know all the details from the comfort of their home.
Money Saver- Going to a bank and seeing the rates may not be everyone’s cup of tea. People can’t get the liberty of repeatedly asking for interest amounts on varying interest rates, and thus, in a state of hurry, they end up taking a loan that might not be the best choice for them. Lack of availability of information is a common phenomenon in offline mode, which is totally taken care of in the online EMI calculator, as you can make an informed decision that will directly translate to a considerable money-saving.
The process to use the EMI calculators may vary a little depending on the website. The overall process is by and large the same on all the websites, and even if there is some chance, it will only ensure that you get additional information. On some of the websites, the interface might make it more convenient by providing a slider wherein you can simply slide the interest rate and loan tenure to see the dynamic interest amount to be paid on a real-time basis. The websites show a real-time variation of EMI payable and the overall amount when you vary other factors. This helps make an informed choice, allowing people to choose the correct loan amount with a feasible interest rate and optimum loan tenure.