# How Personal Loan Calculator Helps You to Apply For Low Personal Loan Interest Rate

How Personal Loan Calculator Helps You to Apply For Low Personal Loan Interest Rate
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A personal loan can be the best solution to manage your uninvited expenses. In fact, it is referred to as a multi-purpose loan since there is no limitation on the use of the finance amount. Be it home renovation, higher education, medical emergency, or even debt consolidation, you can use the finance amount for any purpose to meet your emergency fund requirements. The best thing about PL is that it is sanctioned in a very quick period of time. Consumer loans are unsecured so there is no collateral or security is required to procure it. Offered by almost top leading banks and financial institutions, you can opt for PL with minimal documentation & quick disbursal.

But before you avail the one, make sure you check the personal loan interest rate as the rate of interest on PL is higher as compared to home or car finance. Hence, managing your consumer finance would require smart planning of finances. That is where the consumer finance EMI calculator comes to your rescue. This is an online tool that not only allows you to calculate the EMI (equated monthly installments) payable to the lender but also it enables you to compare interest rate offered by different lenders on PL. In short, it enables you to budget your future expenses and help you to take a responsible decision.

## What Is a Personal Loan EMI Calculator?

Consumer loan EMI calculator is a handy tool that helps you to calculate your monthly equated monthly installments which you will be liable to pay for your loan every month. All you to input the relevant PL details and this calculator will show you an estimated amount of your monthly payouts. Once you get an approximate value, it will be easier for you to measure your financial situation before applying for one.

## The Formula of Calculating Personal Loan EMI

The formula for evaluating monthly payout is as follows:

E= [P x R x (1+R) ^ N] / [(1+R) ^ N-1]

Where,

E= EMI that you will need to pay

P = Principal finance amount that you want to avail

R = Rate of interest evaluated on a monthly basis

N = the repayment tenor of the loan

## How Does This Calculator Works?

Personal loan EMI calculator provides you the results within a few seconds only and it allows you to understand whether the monthly payout would be affordable for you.

All you need to enter the required PL details such as:

1. Finance amount (In AED)
2. Personal loan interest rate(In percentage)
3. Repayment tenure (In months or years)

This handy tool will then show your monthly consumer finance EMI that you will need to pay every month. And if the EMI is higher or lower than you want to repay every month, you can also change the input values. This calculator will re-calculate and show you the new EMI that might be affordable for you.

However, this online tool not only generates the consumer finance EMI result but also it also tells you the total personal loan interest rate payable throughout the loan repayment tenure. The pie-chart will further show the break-up of the total payment of the principal amount and interest rate. In this way, this calculator helps you in planning your future financial obligations.

## Consumer Finance Interest Calculator Evaluates the Monthly Interest Rate

When you finally decide to opt for PL, the first thing that comes into your mind is the consumer finance interest rate that is charged from you and how to evaluate EMI for consumer finances.

Every bank or financial institution charge rate of interest at a different rate and it is being offered as an annual fee. In order to evaluate your monthly equated monthly installments, you will at first need to convert the annual fee into a monthly fee. To do the same, you will need to divide the interest rate that is charged annually by 12 (i.e. if you’re being charged PL interest at the rate of 12% per annum then you will have to divide 12 by 12 which yields 1). This shows that the monthly interest rate on PL will be levied at 1 percent per month. Hence, you can use the interest rate calculator to evaluate the per month personal loan interest rate.

Conclusion

The interest rate charged by the lender has a great impact on equated monthly installments that you will have pay for your loan on a monthly basis. Thus, before you apply for one, it is advisable to use the personal loan EMI calculator. Not only this tool helps you to know the monthly payout but it also helps you to know how the loan will affect your pocket monthly. In addition to this, you can use this tool to compare the interest rate provided by the different lenders on consumer finance. This will help you to avail PL at the lowest interest rate.