3 Tips on how salaried professionals can apply for a personal loan using a loan calculator
A personal loan is an unsecured loan and an individual is not required to provide any collateral or security or asset to avail the loan. The factors that are considered while providing a personal loan are the income, the capacity of repayment and an individual’s creditworthiness, as there are a lot of risks involved from the lender’s side. Sometimes an individual’s salary doesn’t permit them to spend on their necessities. Even a salaried professional might come across a situation where he or she doesn’t have enough funds to fund children’s higher education, medical expenses, buy a house, purchasing home appliances and emergencies.
The general criteria to apply for a personal loan are age, income, occupation and resident’s current address proof. It’s advised to differentiate the offers of various banks before settling on one loan. The loan gets disbursed within 7 days from the date of application. Banks require individuals to repay loans before their retirement. You can take possession of anything with the availability of the loans by opting for EMIs (Equated Monthly Installment). A personal loan calculator is simple and quick, thereby saving time. The calculations can be done in a few minutes by just entering the details. The manual calculation of EMI might lead to wrong information, while using the EMI calculator uses accurate calculations with the formulas.
Here are 3 tips on how a salaried professional can apply for a personal loan using the EMI calculator
Calculate the EMI payable – The amount that is to be paid on a monthly basis to the lender is the EMI. EMI includes the amount, rate of interest and repayment tenure. The loan amount and the loan tenure can be chosen by the individuals as per their repayment capacity and requirements. Before taking a loan, it’s essential for an individual to know the EMI amount to adjust their monthly expenses accordingly. Large loan amount will lead to higher EMI. Usually, the loan amount is restricted by the bank in a way that the EMI doesn’t amount to more than 40-50% of an individual’s income. By using a personal loan calculator, one can easily determine the amount of payment they have to make monthly towards the availed loan
Lesser chances of default – Personal loan calculator helps to plan the monthly budget which leads to lesser chances of default. If you default on a personal loan, it reflects in your credit report, thereby reducing the chances of approval of loans in the future. You can maintain a good credit history by timely repayment of loans. If you have a credit score of around 900, you will be able to avail of a higher amount of loan
Know the rate of interest – Low EMI results in a low rate of interest and long repayment terms, or maybe both. It may happen that you pay more interest in low EMI’s. It’s advisable to make use of EMI personal loan calculator by Upwards to know the rate of interest to be paid over the tenure of loan and your capacity of repayment
It must be noted that a personal loan calculator gives assistance to the user on the amount of loan they are allowed to borrow. The calculated results are an approximated value and the actual interest rate may vary. The user is required to share exact details for the evaluation of the user’s application. Uses should take professional guidance into account as well and not substitute the same with the calculated results using the personal loan EMI calculator.