Personal Loan Calculator

How Does a Personal Loan Calculator Work?

Whether it’s to meet one’s mortgage payments or to cover education costs, personal loans in the UAE offer an immediate and effective solution to a person’s financial needs. But regardless of what a personal loan may be taken for, applicants are strongly advised to use a personal loan calculator and estimate their monthly obligation before applying.

Note that personal loans in the UAE for expats and Emiratis alike are usually unsecured, i.e. they do not ask for collateral from applicants. Personal loans offer immediate capital to the loan holder and in return, ask for a monthly payment, which is also known as the loan’s Equated Monthly Instalment (EMI).

Personal loan calculators in the UAE base their calculations on a variety of factors, which include the total loan amount, the tenor of the loan and the applicable personal loan interest rate. It is important to note that personal loan EMI calculators only provide an estimate of the monthly obligation. The actual EMI may further vary depending on the charged interest and on the offered tenor.

Benefits of a Personal Loan Calculator

In addition to the restrictions imposed by personal loan issuers, the UAE government has also set forth certain rules that regulate the issuing of personal loans. For example, personal loans in the UAE may only be allowed to offer a maximum loan amount that is a direct multiple of the applicant’s salary (such as up to 20 times the applicant’s salary).

Personal loan calculators in the UAE make these complicated calculations extremely easy and offer the following advantages:

Being Prepared

First and foremost, a personal loan EMI calculator allows applicants to accurately assess their monthly expenses and plan for the future. By using such a calculator, applicants may effectively plan their savings, daily expenses and vacations around these monthly personal loan

Interest Charges

Personal loan interest rates in the UAE are offered in two major variants: as a flat rate interest and as reducing balance interest. Flat interest remains constant through the tenor of a personal loan in the UAE. Reducing personal loan interest rates are calculated on the total outstanding borrowed amount and as such, decrease during the tenor of a loan. A personal loan calculator allows applicants to effortlessly find the lowest interest rates for a personal loan in the UAE.

Loan Comparisons

A personal loan EMI calculator allows for constructive personal loan comparisons. But, in addition to the monthly obligation amount, personal loan calculators may also be used to estimate a loan’s total interest charges and usable amount. This is an excellent way to carry out personal loan comparisons in the UAE.

Top-Up Loan Calculations

A top-up personal loan is a loan that is offered in addition to an existing active loan from the same issuer. Top-up personal loans in the UAE extend the current loan amount and loan tenor, i.e. they allow loan holders to avail of additional funds for a longer period of time. But while a top-up personal loan offers greater funding to the customer, it also brings with it a new set of calculations that involve new and preferential personal loan interest rates and an extended tenor. Personal loan calculators in the UAE can cut through this mathematical nightmare of top-up loan computationsdetermine the loan holder’s new EMI.

How the PolicyBazaar Personal Loan EMI Calculator Works

PolicyBazaar is an online aggregator of various financial services such as insurance policies, credit cards and personal loans in the UAE. As such, PolicyBazaar functions as an absolutely impartial platform for personal loan comparisons.

We maintain a regularly updated list of personal loan issuers in the UAE and faithfully report their various features and benefits without even a hint of bias. The PolicyBazaar personal loan EMI calculator is a general all-purpose tool that can be used to estimate the EMI for any personal loan in the UAE.

The PolicyBazaar personal 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 personal loan amount, applicable personal loan interest rate, type of interest (reducing or flat) and tenor of the loan (in months).

After entering all of the required details, the PolicyBazaar personal loan EMI calculator will estimate the customer’s monthly obligation at lightning fast speeds, with the click of a button.