Remember your school days when you used to crosscheck complex calculations with the help of a calculator to make sure that you were on the right track? Well, times change with age, and so does the calculator.
In the current era, going for your dream house or even car is not possible without the help of a loan. Well, typically, what everyone does is they just get a fair idea in their mind and start chalking out the entire plan. Well, without the exact figures, one might change or even cancel their plan of going for a loan, so it is essential to have the precise numbers in front of you. This is where an EMI calculator app steps in.
By just entering a few details like Loan Type, Variant, Amount etc., you are good to go! In my experience, it is one of the most impactful tools to use if you plan to go for a home loan.
What is an EMI?
An Equated Monthly Instalment (EMI) is a fixed amount of payment made by a borrower to the lender every month on a particular date. Remember that this date is pre-determined at the time of lending the loan.
These instalments paid by the borrower are applied to the principal and interest amounts so that the loan amount is easily paid off effortlessly over a specific period.
How is an EMI calculated?
Now, there are methods to everything – Traditional and Modern. You can pick pen and paper to calculate what you’ll be paying each month, or you can easily download EMI calculator app on your smartphone. The first one will consume a lot of your time, while the latter will take just a few seconds and offer you an accurate figure.
Factually, the loan amount, tenure and interest rate are the top three key factors of a loan. Therefore, the EMI applicable to a loan varies according to these parameters.
It’s been around a year since I’ve been using the Bajaj Finserv application, as I downloaded it to purchase my car insurance. I later discovered that they offer various EMI calculators (I’ll mention below how you can use them).
How to calculate EMI after the EMI calculator download?
Now, as I use the Bajaj Finserv app, I’ll share my experience of the same for a better understanding of all the readers.
(Note: I’m not promoting any brand.)
- Download the Bajaj Finserv app.
- Enter your phone number.
- After receiving the One-Time Password, you’ll enter the home page.
- Tap on the top left at the three bars.
- Here, in the menu, you’ll see an option of ‘Try our Calculators’
- Tap on ‘EMI Calculators for Loans’
- There are three types of calculators available: EMI Calculator, Flexi Day Wise Interest Calculator and Flexi Transaction Calculator.
When you make an EMI calculator download, you are on the profitable side. This is because it helps you know the exact amount you’ll pay each month. On the other hand, the lender also profits with a constant income each month.