What makes ADCB Personal Loan Calculator Insanely Popular?
In the 21st century, when the cost of living has been touching the sky, the loans or finances have in turn become an essential part of our lives. We approach banks or financial institutions whenever we have a shortcoming in our finances for fulfilling our financial requirements. These financial institutions or banks help in bridging the gap between the availability of funds and our requirements.
The personal loans have made it possible for us to meet financial objectives that otherwise seemed impossible. There are various banks in the UAE that offer personal loans for your requirements, ADCB being amongst them.
The Abu Dhabi Commercial Bank offers customized packages of personal finance for both expatriates as well as UAE Nationals. The ADCB loans offer competitive rates of interest, extended tenure of loans, flexible eligibility requirements, and high salary multiples.
The bank also offers its customers an ADCB personal loan interest rate calculator for making the calculations easy them and give them an estimate of the total loan cost before applying.
You should know that applying for finance and obtaining it isn’t the climax of your loan saga. There are a few important implications and terms, which you need to understand while applying for consumer finance with ADCB.
EMI (Equated Monthly Installment) is amongst the important terms that you must know, not only while applying for personal finance but also other types of loans. EMI refers to the stipulated amount, which you will have to pay on a monthly basis for making the repayment of the loan amount.
Why is it Important to Use the ADCB Personal Loan Calculator?
We tend to get really excited about the loan and begin making plans about how they will use the money. However, we sometimes forget to acknowledge the repayment capacity of the debt.
It is necessary for you to understand your monthly installments as well as the eligibility of personal loan before applying for it. This will help you in planning your expenses as well as budget accordingly, such that you do not end up as a defaulter.
For assistance in getting through it, you can use the ADCB personal loan eligibility calculator. The individuals who have an estimate of their EMIs beforehand are able to plan their monthly budget more efficiently. They already have an idea about how their financial life may get affected after the beginning of the EMI schedule.
Those who have not planned about their debt repayment in advance usually end up missing their EMIs, which in turn leads to a poor credit rating.
These loan calculators offer you the independence to compare rates of interest and EMI of various lenders. Checking the eligibility using these calculator tools may assist you in obtaining the most suitable deals for your loan.
How is EMI on ADCB Personal Loan Calculated?
While calculating the EMI on this loan, there are three factors as mentioned below that you need to consider.
- Rate of Interest: The interest rate on your personal finance is something that you have to pay to the lending institution or the bank.
- Amount of Loan: The amount of loan is the total amount, which you borrowed. It may happen a lot of times that a larger amount is sanctioned on your name as the loan, but the EMI is calculated on the actual amount you have borrowed instead of the total amount that has been sanctioned.
- Loan Tenure: The tenure of the loan is the entire duration for which you have borrowed the funds. Your EMI is calculated on the basis of the loan tenure.
Earlier, this EMI was calculated manually using a formula; however, with the advancement of technology, the calculation of EMI has become simple. With the help of ADCB personal loan EMI calculator available online, you can instantly get the estimate of the amount you will have to pay monthly based on the factors discussed above- interest rate, loan amount, and the tenure.
Simply put, the EMI on your personal loan is directly proportional to the rate of interest charged and the amount of principal borrowed. However, it is inversely proportional to the tenure of your loan. The more the loan amount or the rate of interest, the more would be your EMI, but, longer your loan tenure, lower would be your EMI.
What is Reason Behind the Change in your EMI Over Time?
There is no hard and fast rule that your EMI has to change after a certain period of time. However, if the basics of the EMI calculation change, then so will the EMI amount. Listed below are the scenarios wherein you may experience a change in the EMI amount.
Change in the Rate of Interest
If you have obtained the personal finance on a flexible rate of interest, then your installment amount may change depending upon the change in the rate of interest.
If you have made a prepayment on your loan, your total loan amount comes down. There will also be a marginal difference in the interest calculation, which in turn will reduce your EMI.
Change in the Tenure
If you request your lender to increase the duration of your loan, then your EMI will change too.
With the help of these calculators, the ADCB Personal Loan calculation has become easy for its customers. If you are in an urgent need of funds, just check your eligibility and the estimate of your loan amount and EMI on the official website of ADCB and apply for the finance of your choice.
This amazing digital advancement not only helps you in having a piece of knowledge about your repayment schedule beforehand but also do your financial planning accordingly, hence avoiding the negative impact on your credit score.