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For people in need of immediate money, personal finance can be of great help. The processing for the personal finance is quick and the documentation is quite simple too. As long as you meet the basic criteria, you can qualify for a quick personal finance too. Also, you get flexible tenure for the repayment of the personal finance.
The repayment of the personal finance is done on the basis of EMI. EMI means Equated Monthly Installment. Personal finance EMI includes the rate of interest with the personal finance amount payable to the finance company.
To calculate the EMI for the personal loan, all you need is the finance amount, the interest rates and the tenure of the repayment.
Below we have discussed how the calculator for the EMI of the personal finance works and how to calculate the EMI for the personal finance. We have also covered how to reduce the EMI of your personal finance and the way to check the eligibility for your personal finance.
To figure out your EMI, a very simple formula is used by the EMI calculator. The formula used for the calculation is-
E=P * r * 1+r) ^ n / ((1+ r) ^ n - 1)
Here, ‘E’ is the EMI. ‘P’ is the finance amount, ‘r’ is the interest rate (calculation done on the monthly basis) and ‘n’ is the tenure term of the personal loan.
You should maintain a good credit score too. The highest credit score being 900 and the lowest credit score being 300. Credit score below 400 is considered big risks. Some financial companies don’t provide finance to applicants with the credit score of 500 too. The fact of the matter is higher the credit score, lower the interest rate.
However, Interest rates are affected by the credit score too. High credit score can give you lower rates of interest.
To calculate the personal finance EMI, you will need the amount that you would like to be financed. You will need to know the interest rates and the term for the repayment tenure. Once you know the finance amount, interest rate and the tenure term, you can calculate the personal finance EMI using the above formula.
As long as the payment of the finance remains, your monthly expenses can be affected by the EMI. To reduce your personal finance EMI, you should-
Before you apply for the personal finance, it is important for you to find out the finance amount you are eligible to. The eligibility of an applicant makes a great impact on the finance amount. So below we have noted the factors needed to check the Eligibility for the Personal Loan and the personal finance EMI.
These days it has become quite easy to check your eligibility for the personal finance. You don’t need to hire a broker to check the personal finance eligibility. Finance companies provide the eligibility calculator on their websites. All you will need to do is select your date of birth, residence, monthly income and your monthly expenses. Once you click on all the required fields, the calculator will show you the personal finance amount you are eligible for.
Though there are some factors that could affect your eligibility for the personal finance. These factors are the credit scores, monthly salary and the DBR. DBR mean Debt Burden Ratio.
Debt Burden Ratio is very important as an eligibility factor. It gives an idea, to the finance company, of the percentage of your current salary that goes in to the debt. Your total earning’s commitments are also reflected in the DBR.
The reason DBR is important is because the central bank has made it compulsory for the DBR to not surpass 50% of the total monthly salary. Every type of the existing personal finance of the applicant is included in the calculations of the DBR.
There are certain requirements to qualify for the personal loan in UAE. One of the important requirements is the age limit. Your age should fall in the bracket of 21- 65. You should have the minimum salary required by the finance company. Some finance company requires minimum salary while other finance companies seek for higher limit of minimum salary. The requirements of the minimum salary can differ for every finance company depending on the different types of personal loan. As long as you meet the requirements of the finance companies, you will be easily eligible for the personal finance.