# How With the Help of Personal Loan Calculator You Can Repay Your Loan EMI

How With the Help of Personal Loan Calculator You Can Repay Your Loan EMI
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Personal loan is quite common now these days given that the whole application process is online now. Moreover, with fast approval and quick disbursal, consumer finance appeals to millennial, making it a flexible & easy option in times of emergency funds. Whether it is weeding, medical emergencies, international trip, or children’s education, a consumer loan caters to your personal needs.

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.

## What is Personal Loan Calculator All About?

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.

## The formula of Calculating Personal Loan EMI

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]

Where,

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

## Steps of Evaluating Monthly Installments Using Personal Loan Calculator in UAE

Enter the following information in order to calculate your monthly installment:

1. Select the amount of the finance. (The amount that you wish to avail).
2. Enter the interest rate
3. Choose the repayment Tenure (it is up to 48 months)
4. Then, finally click on the calculate button.

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.

## Factors Affecting Your Consumer Loan EMI

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:

• Income Proof
• Debt-to-income ratio
• Employment history

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.

## Benefits of EMI Calculator for Consumer Finance

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:

• Time Saving: Calculating your consumer finance EMI manually can be very long & tedious task. But with the help of this calculator, you can easily do your monthly payout calculation in a few seconds only.
• Accuracy: Another notable benefit of using this tool is that you will be able to do the loan calculation accurately in no time.
• Fast Results: Once you enter all the required loan details, you will get an approximate amount on the spot.
• Highly Adjustable: If, in case, the results are not as per your convenience then you can also edit the principal amount to get the desired monthly payout. As this tool is endlessly adjustable and you can unlimitedly calculate and re-calculate your EMI until and unless you find out the monthly installment that can suit your budget.
• Easy Comparisons: One of the key benefits of using this tool is that it lets you quickly calculate the EMI for different consumer finances to see which one fits your budget the most.

Conclusion

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.