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Well, the interest rate on PL is higher than a car or home loan. Henceforth, managing your PL would require proper planning of finances. So, if you have financially decided to opt for consumer finance, you need to plan your equated monthly installments (EMIs) in advance along with your other financial obligations. Doing this will help you to pay your EMI on time. In order to ensure this, you are required to know the exact monthly payout of your EMI. The Personal loan calculator in UAE is the reliable and quickest way to know this.
So, you might be wondering what personal loan calculator is and how it helps you to repay your loan EMI? To clear all of your doubts, read this article further.
PL calculator is basically an online tool that helps you understand the EMI (equate monthly installments) that you will have to pay towards the principal amount and interest payments over the loan repayment tenure. You can use this amazing tool in order to know how much money you can conveniently pay every month over a period of time. In short, you can easily plan your monthly installments and make the repayment of your loan by taking the help of personal loan calculator in Dubai, UAE. All you need to do is enter the required loan details such as loan amount, tenure, and interest rate, and this tool will provide you an estimated amount of your monthly installments. Once you get an approx idea, it will be easier for you to manage your finances before applying for PL.
Personal loan calculator in UAE uses a simple formula in order to determine your monthly payout. The formula is:
E= [P x R x (1+R) ^ N] / [(1+R) ^ N-1]
E stands for EMI that you will need to pay
P is the finance amount that you wish to avail
R is the monthly rate of interest applied
N is the loan repayment tenor
Enter the following information in order to calculate your monthly installment:
This tool will then show your EMI break-up of both the principal payment and rate of interest. And if the consumer finance EMI is lower or higher than you want to pay every month, you can also edit the principal amount and follow the same steps from 2 to 4 to get the EMI that you can easily and conveniently pay.
There is a wide range of factors which affect your EMI calculation. It majorly depends upon the principal loan amount, interest rate, and repayment tenure. Any kind of change in these factors might cause a major change in the amount of your monthly installments.
Apart from these three variables, there are some other important factors upon which the finance amount granted may differ. And credit score is one of them. The more the credit rating, the higher are the chances of getting the desired finance amount. Thus, it is very important to maintain a good credit score. And if your credit rating is low, you can pay your credit card bills and other existing repayments on time to keep it good. Besides, there are several other criteria upon which the rate of interest and finance amount granted varies such as:
Based on above-mentioned factors, lenders decide how much interest rate and finance amount should be offered to you. Hence, PL monthly installments directly depend on all of these factors.
Consumer finance EMI calculator is a very handy tool where you do not have do much apart from entering finance amount, rate of interest, and repayment tenure. Now coming to its benefits, personal loan calculator in Dubai, UAE is very useful in various manners. Following are some of the key benefits of this generic tool:
As you can see that there are multiple benefits of using a personal loan calculator in UAE. Not only it enables you to evaluate approximately how much you will have to pay as EMI but also it helps you to manage your other financial obligations before applying for PL.