Loans have become imperative to meet our monetary requirements. From home, car, to business loans, there are plenty of loans available today to fulfil different financial needs. Banks and financial institutions help us in acquiring financial assistance in the form of loans. 

There are plenty of factors involved in acquiring a loan. Banks and financial institutions gauge your financial position in order to ascertain whether you are eligible for the loan or not. They further determine the monthly/quarterly EMIs a.k.a equated monthly instalments that you would need to deposit to pay off your loan. EMI is the stipulated amount of your loan. It is calculated with the principal amount and the interest charged by the bank. Calculating the monthly EMIs can be a daunting task if you don’t use an EMI calculator

What is EMI Calculator?

It is a financial tool used by the borrower or the lender in order to calculate the accurate amount of EMI on the amount provided the loan. There are plenty of benefits of acquiring assistance from an EMI calculator for getting the exact idea about your EMI amount. Today, there are plenty of EMI calculators available in the market. Some of the banks and financial institutions have their dedicated EMI calculators for customers to calculate their stipulated EMIs before applying or the loan. By using an EMI calculator, you can get a clear picture regarding your EMIs and decide whether you can afford the amount or not. 

Take a look at some of the common benefits of using a reliable EMI calculator. 

Convenience

The ease of EMI calculations can only be felt by EMI calculators. This online tool can calculate extensive loan amounts without any hassle. In a matter of seconds, you can make your decision regarding the loan. 

Accuracy

It is quite evident that you cannot calculate the EMI amount using the traditional calculating methods, i.e., pen and paper method. EMI calculator leaves no chance of errors and increases the accuracy as well.  

Specific For Each Loan

If you think that EMI calculators are common for all loans, then you are definitely mistaken. There are different EMI calculators for different loans that make the calculation much easier. 

Graphical Representation

EMI calculators also showcase graphical representation of your loan amount that has to be paid within a certain period of time. It gives a clear understanding of your principal outstanding, time remaining, rate of interest, etc. 

Conclusion

Acquiring loans have become a common practice to meet the financial ends of our life. Whether it is to buy a new home or deposit the lump sum educational fees, loans have become necessary. While you apply for the loan, you would need to ascertain the EMI amount that you would need to pay back to the bank or the financial institution in order to pay off your loan. 

Calculating EMIs can be strenuous if you don’t use an EMI calculator. From convenience, accuracy to instant calculation, there are several perks of an EMI calculator. The above mentioned were some of the common benefits of EMI calculators.