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In case you are still confused if you should opt for this finance or not, there is a simple solution to it: Personal Loan EMI Calculator. Using this calculator, you can easily obtain an idea on the way of managing your personal finances.
Let’s first get a detailed idea of what exactly a personal finance EMI means.
Just as the other finance options in the UAE, such as car loan, home loan, business loan, and more, you have to make repayment of the finance amount to the bank or the financial institution in the case of personal loan too.
Your EMI (Equated Monthly Installment) is the amount of funds, which you have to pay to your lender monthly. The EMI is a fixed amount, which is calculated when you take the loan and is based on three simple and basic variables- interest rate, amount of loan, and the loan tenure.
Your interest rate and the amount of loan is based on various factors, credit score being the main amongst them. The loan tenure is based on the amount of finance you are taking. Hence, using these three variables, you can calculate your EMI through the personal loan EMI calculator in UAE.
Calculating the EMI on the loan is as easy as it can get. You just need to follow a simple formula that includes the three variables discussed above- loan amount, interest rate, and loan tenure. The formula goes:
Listed below are the multiple advantages of the EMI calculator.
By using the calculator, you can take out the correct outcomes, hence, providing you with the correct amount of EMI.
A wrong calculation leads to false outcomes that can cause changes in your decision at the times of obtaining the finance. So, using an online EMI calculator is highly recommended for correct results.
The calculator also helps you in saving time that you would have otherwise wasted in doing lengthy calculations, which now you can do within seconds. You get the output instantly after entering your personal loan information.
In case you are still confused regarding which personal loan you must opt for, the EMI calculator will come to your help. The calculator lets you check EMI for different combinations of interest rates and loan durations. Hence, you can select the EMIs that are the most suitable for you in terms of repayment capacity.
The finance calculator lets you calculate the EMI that you have to pay during the tenure of the loan. It also makes you understand if you are capable of making the repayment of the borrowed amount or not.
You must always select the amount, which has no effect on your budget, present financial condition, and your credit rating if you by any chance you fail to pay the loan EMI.
One thing is for sure, you must calculate your loan EMI before availing it in the UAE. In case you are a salaried individual, then, you may be earning a fixed amount every month. And, in case you are an entrepreneur, then you may not be earning a fixed monthly income, in fact, you must have suffered months with no income too.
However, irrespective of the above cases, you will have to maintain your regular expenses for survival. When you opt for a loan, you promise the lender to make the repayment of the funds within the timeframe as determined. Hence, it is essential that you have anticipated the outflow of cash for the coming months before getting involved in this loan market.
To Sum Up!
The initial and the basic step in the repayment of a personal loan starts with the analysis and calculation of the loan EMI. While obtaining personal finance, the first and foremost thing to be done is check your requirement including the amount needed.
The next thing you need to do is review your own repayment capacity in relation to the amount borrowed. It is important that you clearly know your capability of making the repayment of the loan. This includes the repayment of the loan within the time duration as determined.
You know how important EMI calculation is, hence, you can make use of the personal loan EMI calculator in UAE for calculating an estimate of the EMI beforehand. Through this, you will get an idea of the installments you will have to pay monthly before actually borrowing the funds. This calculator also helps you in planning your finances depending on the loan, hence, being able to manage them more efficiently.