Calculate Your Personal Loan EMI Easily!
Get personal loan at lowest interest rate
A personal loan calculator is a handy tool used to calculate an estimate of the total cost of the loan.
This tool is a great option for potential borrowers for estimating the loan amount that they are capable of affording and repaying comfortably in form of EMI every month along with the interest rate charged by the lender. Before opting for a personal loan, the applicant must first analyze the actual borrowing cost that they will have to bear. Whether it is to meet one’s mortgage payments or to cover education costs, a personal loan in UAE offers an immediate and effective solution to an individual’s financial needs for all those living in the UAE.
There are two basic things and formulas that a personal loan calculator focuses on. First, it calculates the monthly interest rate on the loan, and second, it converts the total amount of the loan (principal + interest amount) into monthly EMIs. When you take on a personal loan, the very first thing that is noted is the interest rate. You will see that the interest rate is always given in per annum form which translates to yearly. So, the first thing you need to do to be able to use a personal loan calculator is to convert the rate of interest into a monthly form. Simply divide the annual rate of interest by 12 – r (annual ROI)/12.
Note that most EMI calculators work with reducing interest rates while others calculate EMIs on the basis of flat interest rates. It will be marked alongside the cell where you will be entering the rate of interest in the calculator. So, make sure that you are using the right kind of calculator to get accurate results.
Most Personal loan calculators do not require you to convert the ROI in monthly form as the calculator is designed to do it by self.
Next is calculating the EMIs. The formula used here is a little more complex than the one used to calculate monthly ROI.
E = P *R *(1+R)^N / ((1+R)^N-1)
E = Monthly EMI
P = Principal of the Loan
R = Rate of Interest (monthly)
N = Total number of months in the Loan Tenure (a loan taken for 3 years will make N = 36 (12*3)
Here is a brief explanation of the factors based on which the personal loan calculator in UAE works and EMI is calculated.
The amount borrowed by any applicant is called the loan amount. There is an interest rate to be added to this amount and then, divided into EMIs based on the tenor of the loan. The applicant can enter loan amount in this calculator to get a fair idea of the EMIs that are to be paid.
This rate is charged on the loan amount. The Interest rate can either be flat or reducing. Flat interest remains constant throughout the tenor of the loan whereas reducing interest rates are calculated on the total outstanding borrowed amount and as such, decrease during the tenor of the loan. A personal loan calculator in Dubai helps us to calculate both.
It is the timeframe determined for repaying the loan. Most of the lenders in the UAE offer flexible loan tenors, that is, the applicant possesses the power of selecting the tenor for repayment of the loan as per their suitability.
As mentioned earlier personal loan calculator is a tool that allows loan seekers to calculate the EMI and other details based on the interest rate and total loan amount. To Use Personal Loan Calculator online follow this step-by-step guide that will help you to calculate your personal loan EMIs.
Step 1: Gather all the values – principal amount, rate of interest and tenure of the loan (converted to months, preferably).
Step 2: Enter the aforementioned details in the dedicated cells of the Personal Loan EMI calculator and let the calculator take the lead.
Step 3: Check the results displayed at the bottom of the calculator. The results of the calculator are displayed simultaneously which means that you can easily change any of the values entered above and get instant change in the result displayed below.
Note that the personal loan calculator at Policybazaar.ae offers two options for entering the loan tenure – in terms of total months as well as in terms of years. You can choose whichever one is more comfortable.
From saving your time to making complex calculations seem like child’s play, personal loan calculators in UAE offer a huge set of advantages that make it essential to use them when you are thinking of taking on a personal loan in UAE. Following are the top benefits of a personal loan calculator in UAE:
Personal loan EMI calculator allows the applicants to accurately assess their monthly expenses and plan for the future. By using this calculator, applicants may effectively plan their savings, daily expenses and actions around these monthly instalments.
The rates of interest on these loans are offered in two major variants in the UAE: as a flat rate interest and as reducing balance interest. The personal loan interest calculator allows applicants to effortlessly find the lowest interest rates for a personal loan in the UAE. The existing borrowers can calculate the rates of interest for cross-reference.
This PL EMI calculator allows the applicant to make constructive personal finance comparisons. But, in addition to the monthly obligation amount, these loan calculators may also be used to estimate the total interest charges and usable amount on the loan. This is an excellent way to carry out personal loan comparisons in the UAE.
Calculating the EMI is a vital step while applying for the loan. It assists the borrower in planning their finances more efficiently. The Personal loan EMI calculator in UAE provides an estimation of the EMI that you will have to pay after obtaining the loan. This will help the potential borrower in comprehending the loan amount they can apply for. They will also have an idea of the amount they will be repaying against the loan.
The top-up facility on a loan is offered in addition to an existing active loan from the same loan provider. Top-up personal finance in the Emirates extends the current loan amount and loan tenor, i.e., they allow the borrowers to avail additional funds for a longer period.
However, while a top-up loan offers greater funding to the customer, it also brings with it a new set of calculations that involve new and preferential loan interest rates and an extended loan tenor. The personal loan calculators in UAE can cut through the mathematical nightmare of top-up loan computations determining the new EMI of the borrower.
When it comes to any algorithm-based tool, a major concern is accuracy and precision. Personal loan calculators are quite accurate but still, there is a minute scope of error mainly due to two reasons. Firstly, almost every personal loan calculator takes into account the standard values excluding real-time values such as arrangement fee, processing fee, bank charges, etc. As a result, the EMI that comes up, as a result, is often lower than the value in real-time. Considering this disparity in the pricing it is recommended that loan seekers should get the figures cross-checked from the loan officer before proceeding for final application to avoid any issues later.
PolicyBazaar is an online aggregator of various financial services such as insurance policies, credit cards, and personal finance in the UAE. PolicyBazaar.ae functions as an absolutely impartial platform for PL comparison in UAE.
We maintain a regularly updated list of loan providers in the Emirates and continue to faithfully report their various features and benefits without even a hint of bias. The PolicyBazaar Personal loan calculator in UAE is a general all-purpose tool that can be used to estimate the Personal loan Interest rate calculations in easy and convenient steps.
Our loan calculator is highly intuitive and lightweight, allowing loan applicants to estimate their monthly obligations within a few quick steps. Applicants will first be required to enter their loan details such as the loan amount, applicable rate of interest, type of interest (reducing or flat), and tenor of the loan (in months).
After entering all of the required details, our EMI calculator will estimate the monthly obligation of the applicant at a lightning-fast speed, that too only with the click of a single button.