When it comes to financial expenditures, we all know that planning is an essential part of it. Without a proper plan chalked out, you’ll find yourself in a maze and might spend unnecessarily. Well, as the penetration of internet-enabled smartphones has increased, things around us have become a lot easier.
Now, you don’t need a pen and paper to calculate and make a plan while going for purchase on EMI. Instead, a simple EMI calculator app does all the work for you. Just a few taps and the exact figures are in front of you.
What is an EMI?
It is a fixed monthly payment a borrower provides to a creditor on a set day each month. It applies to both interest and the principal each month. Further, depending on the tenure, the loan is paid off over a few years.
Here, the borrowers are only allowed to make one payment monthly, and they profit from it as they know exactly how much they will pay towards the loan each month. This helps them to make their financial planning much smoother. Meanwhile, the lenders benefit from the loan interest, providing them with a constant income flow.
How is a Loan EMI calculated?
Now, either you can pick a pen and a piece of paper to calculate this with the traditional techniques and formulas or simply download emi calculator app on your smartphone. The latter will undoubtedly save you a lot of time and offer an accurate figure.
It’s been around seven months since I’ve been using the Bajaj Finserv application, as I downloaded it to purchase my car insurance. I even discovered that they offer various types of EMI calculators (I’ll mention below how you can use this facility).
However, factually, the total 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 three parameters.
How to easily calculate EMI on your smartphone via an EMI calculator app?
1. Download the Bajaj Finserv application from Play Store (Android) or App Store (iOS).
2. Enter your official phone number.
3. After receiving the OTP (One-Time Password), you’ll enter the home page.
4. Click on the top left at the three bars.
5. Here, in the menu, you’ll see an option of ‘Try our Calculators’
6. Further, click on ‘EMI Calculators for Loans’
7. There are three types of calculators available. EMI Calculator, Flexi Day Wise Interest Calculator and Flexi Transaction Calculator
8. Proceed further as per your requirements
What are the benefits of using an EMI calculator app?
- It helps you save a lot of time and offers accurate figures. All those complex calculations are performed within seconds, and there are no chances of error.
- It is pretty easy to use. You just have to enter the loan type and variant, amount, interest rate, and tenor. Then, you’ll have the figures in front of you within a blink of an eye.
- It helps you experiment with different loan amounts, tenure, and interest rates. This will make it easy for you to decide the loan amount you should take without causing any inconvenience to your finances.
A simple EMI calculator download can make things a lot easier for you. However, due to the rise in the price of various appliances and gadgets, we are primarily dependent on a monthly EMI, so it is very important to ensure that you have an exact figure in mind before you opt for it.