In today's digital age, obtaining a personal loan has become faster, easier, and more reliable than ever before. Gone are the lengthy paperwork and the need to stand in long bank queues.
New Delhi: Life often presents unexpected financial needs – a medical emergency, children's education, or a dream vacation. A personal loan offers a quick and convenient solution during such times. However, while obtaining a loan is easy, careful planning is crucial. This is where an EMI calculator proves to be a smart tool.
Applying for a personal loan in today's digital world is significantly easier than before. From online application to loan approval and repayment, everything is just a few clicks away on your mobile or laptop. However, this convenience is only beneficial if you understand EMIs and interest rates properly.
What is a Personal Loan?
A personal loan is an unsecured loan, meaning it doesn't require any collateral or guarantor, and can be used for any personal need. Repayment is made in EMIs (Equated Monthly Installments). A key advantage is the minimal paperwork involved.
Leading financial institutions like Bajaj Finserv offer such loans with repayment tenures ranging from 12 to 96 months, providing flexibility and helping customers maintain financial balance.
Why is an EMI Calculator Essential?
An EMI calculator is a digital tool that helps estimate the monthly installment of any personal loan. By inputting the loan amount, interest rate, and tenure, you can determine your monthly EMI.
This tool helps you confidently decide which loan option suits your income and expenses. You can also see how changing the loan tenure affects the EMI amount, preventing undue financial strain.
How to Apply for a Personal Loan
Applying for a personal loan has become extremely easy through the websites of institutions like Bajaj Finserv. You can begin the application process by simply entering basic information like your mobile number, OTP, and Aadhaar details.
Key Steps:
- Visit the website and fill out the application form.
- Choose the loan amount and repayment tenure.
- Complete the KYC process.
- Upload and submit documents.
After document verification, the loan amount is directly transferred to your account.
Required Documents
To make the loan process simple and fast, the following documents are required:
- Identity proof (Aadhaar card, passport, or driving license)
- PAN card
- Employment ID card
- Last three months' salary slips and bank statement
- Address proof (electricity bill or municipal tax receipt)
- Loan Eligibility
- Indian citizen
- Age between 21 and 80 years
- Salaried, self-employed, or employed in an MNC
- Minimum CIBIL score of 685 or higher
How the EMI Calculator Helps
Let's say you take a loan of ₹200,000 for 2 years at an interest rate of 10%. Entering these figures into the EMI calculator will show you the monthly repayment amount. This helps you decide if the EMI fits your monthly budget.
This tool not only provides the exact EMI but also shows the total amount payable and the interest component.
Things to Keep in Mind Before Taking a Loan
- Borrow only the amount you actually need.
- Assess your budget and monthly expenses.
- Keep the EMI such that your savings and investments are not affected.
- Determine the repayment tenure according to your salary and expenditure.
- Maintain a good credit score to avoid loan approval issues.
How to Improve Loan Eligibility
- Pay bills and credit cards on time.
- Choose options with lower EMIs.
- Limit the number of outstanding loans.
- Avoid frequent loan applications.
