Nowadays people start taking loans for even small needs be it a car, house, education or starting a business. But taking before a loan, the most important thing to understand is the Monthly Installments. This amount is divided into two parts know the principal, the actual loan amount and know the interest, the bank’s profit. If the Monthly Installments is high, then repayment can become difficult, hence it is important to calculate the EMI before taking a loan. EMI calculator is an online tool that gives you simple and accurate calculations, so that you can easily understand what your monthly financial burden will be. In this article, we will guide EMI calculator, how it works
What is EMI?
Equated Monthly Installment is the fixed amount. Which is your repetition every month to the bank in disagreement for the loan. It includes the original loan amount as well as interest which is the profit of the bank. The size of EMI be contingent on how much loan you have taken. What is the interest rate and the tenure of the loan. If you take a long-term loan the EMI is low but you have to pay more total interest. If you take a short-term loan the Monthly Installments is a little high but the total interest is low. The Monthly Installments system creates a structured repayment method for both the borrower and the lender.
What is EMI Calculator?
EMI calculator is a free and online tool. That calculates the monthly sum of the loan. In this tool you arrive just three basic things loan amount and tenure. As soon as you enter these values, the calculator immediately shows you the exact Monthly Installments, total interest and full repayment amount. The biggest advantage of this tool is that it gives instant results and can be used without any technical knowledge. You can find this calculator on the website of every major bank, fintech site or loan provider and you can access it from any device like mobile, tablet or computer.
How to use EMI Calculator
Using the EMI calculator is very easy. Bank or financial website and open the Monthly Installments calculator. There you have to fill three things first write the loan amount that you want to take then enter the interest rate. That is being offered to you and finally select the loan tenure i.e. Then press the calculate button and immediately a breakdown of your Monthly Installments, total interest and full repayment appears on the screen. You can also compare multiple plans by changing different tenure and interest values, so that you can choose the best option that suits your monthly budget.
What is the benefit of EMI Calculator
EMI calculator is a strong idea of your monthly duty. With this, you can easily understand which loan you can afford and which you cannot. They can choose the best and low Monthly Installments plan. For yourself by comparing different interest rates and tenures. With the help of this tool, you can avoid over-borrowing and prevent your monthly budget from getting disturbed. This tool is free, user-friendly and can be used at any time without any professional help. You can view the plans of multiple banks side-by-side and take smart decisions.
Key points:
• You can understand the capacity to afford the loan.
• You can choose a low EMI plan.
• It helps in avoiding over-borrowing.
• Monthly budget is not disturbed.
• This tool is completely free.
Online vs Manual Calculation
If you calculate Monthly Installments manually, you have to keep in mind the formula, interest conversion and multiple steps, due to which the chance of error increases a lot. But if you use an online calculator, you can get an accurate result in just a few seconds. Online calculators are available on every bank’s website and their interface is so simple that no user faces any difficulty in using it. They can also calculate EMI from mobile phone. That is why online calculation is the preferred method today.
When should EMI Calculator be used
You should always use the Monthly Installments calculator before taking a loan. Whether you are planning to take a personal loan, car loan, home loan or a business loan, it is very important to estimate the Monthly Installments. If your income is fixed, then choose the loan tenure only after checking the EMI. If you want to avoid high interest, then select the short-term loan option. With the help of this tool, you can see which plan matches your future goals and current income structure. This way you can avoid the financial burden and repay your loan on time.
Top EMI Calculator Websites in Pakistan
There are many trusted websites and platforms available in Pakistan where you can use reliable EMI calculators. The official site of the State Bank of Pakistan, HBL, UBL, MCB, Meezan Bank and Bank Alfalah websites offer EMI calculation tools that are accurate and secure. Dara, Pak Wheels and real estate sites also provide their loan-related tools that make the user experience easy. You can also download free apps from the Play Store by searching “EMI Calculator Pakistan” on Google. Always use verified websites and never enter your CNIC or personal data on unknown sites. It is also important to double check the result of the calculation to ensure there is no mistake.
Conclusion
In today’s modern era where everything demands speed and planning, taking a loan should also be a smart and responsible process. EMI calculator helps you to understand how much loan is right for you to take and what will be its monthly impact. With the help of this tool, you can understand a clear picture of interest, EMI, tenure and total repayment. This tool is helpful for every loan applicant, whether he is salaried or self-employed. Online calculators are fast, easy and free, hence using them is beneficial for every user. If you are planning for any loan in the future, first calculate the EMI and then take a decision.