Personal Loan Calculator

What is a Personal Loan Calculator?

Whether it is to meet one’s mortgage payments or to cover education costs, personal finance in the UAE offers an immediate and effective solution to an individual’s financial needs. However, before opting for a loan, the applicant must first analyze the actual borrowing cost that they will have to bear.

A personal loan calculator helps them in finding out an estimate of the cost they will end up paying on their loan.  Personal loan EMI calculator can prove to be a great option for potential borrowers for estimating the loan amount they are capable of affording, which they can repay comfortably every month.

How Does It Work?

Regardless of what a personal loan may be taken for, applicants are strongly advised to use the loan calculator and estimate their monthly obligation before applying.

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

Personal Finance 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 interest rate. It is important to note that these 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.

Here is a brief explanation of the factors based on which the EMI is calculated.

Loan Amount

The amount borrowed by the applicant is the loan amount. The interest rate is added to this amount and then, divided into EMIs as per the tenor of the loan. The applicant can enter the amount of loan into the calculator based on their loan requirements.

Rate of Interest on Loan

This rate is charged on the loan amount. The rate of interest can either be flat or reducing in type. Flat interest remains constant through the tenor of the loan. Reducing interest rates are calculated on the total outstanding borrowed amount and as such, decrease during the tenor of a loan.

Loan Tenor

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.

Benefits of a Personal Loan Calculator

In addition to the restrictions imposed by the lenders, the UAE government has also set forth certain rules that regulate the issuing of the loans. For example, personal loan 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).

The Personal loan emi calculator in UAE make these complicated calculations extremely easy and offer the following advantages.

Being Prepared

First and foremost, an EMI calculator allows the 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 installments.

Interest Charges

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 loan 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.

Loan Comparisons

This 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.

EMI Estimation

Calculating the EMI is a vital step while applying for the loan. It assists the borrower in planning their finances more efficiently. The EMI calculator 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.

Top-Up Loan Calculations

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 extend the current loan amount and loan tenor, i.e. they allow the borrowers to avail additional funds for a longer period of time. 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 personal loan interest rates and an extended loan tenor. The loan calculators in the UAE can cut through the mathematical nightmare of top-up loan computations determining the new EMI of the borrower.

How does the PolicyBazaar Personal Loan EMI Calculator Work?

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

We maintain a regularly updated list of loan providers 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 finance in the UAE.

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.