Personal loans are the best way to meet sudden expenses quickly and easily, be it a medical emergency, wedding expenses, home renovation, or debt consolidation. However, it is important to have a loan repayment plan before taking a loan to avoid unnecessary financial stress. This is where a personal loan EMI calculator comes in and is the best tool to help you with this.

You can estimate your personal loan EMIs with the help of EMI calculator. Choose a loan repayment plan that suits you and ensure that your loan does not become a burden on you. Bajaj Finance Personal Loan offers you many great features like low interest rates and flexible tenures. This helps in reducing your loan repayment burden, thus allowing you to plan your finances with ease. Let's find out how you can avail a personal loan on favourable terms and manage your EMIs with ease.

Why is a personal loan a smart choice?

Unlike home loans or car loans, personal loans are unsecured loans, which means you do not need any collateral. Bajaj Finserv Personal Loan offers you a number of benefits, which are as follows:

• Quick processing and disbursement of loan disbursement – On successful loan application, you can receive instant approval and loan amount is disbursed to your account within 24 hours*.

• Flexibility to use for various needs – You can use the funds to meet a variety of needs, including travel, education, medical bills or any emergency expenses.

• Flexible loan repayment tenure – You can choose a loan repayment tenure between 12 to 96 months depending on your budget.

• Very little paperwork – There is no need for lengthy paperwork; you can get the funds you need with just a few documents.

Although taking a personal loan is convenient, improper planning can result in high EMIs and put you under financial stress. This is why it is important to use an EMI calculator.

How to create an effective plan to repay your loan

Personal loan EMI calculator is an online tool that lets you calculate the amount you will have to pay every month. It can help you reduce the following:

• Estimate your monthly EMI before applying for a loan.

• Compare different loan amounts, interest rates and tenures to create the best loan repayment plan.

• Avoid financial stress by choosing EMI as per your budget.

You can explore different loan repayment plans to suit your financial situation by increasing or decreasing the loan amount and tenure in the EMI calculator.

Suppose you need a personal loan of Rs 5 lakh to renovate your house. You can explore different loan repayment options using the personal loan EMI calculator:

Option 1 – Repay the loan as soon as possible:

• Loan tenure: 3 years

• EMI: Higher, but you save on total interest paid

• Best for those who: Can afford higher EMIs and want to repay the loan quickly

Option 2 – Lower Monthly Burden:

• Loan tenure: 5 years

• EMI: Lower, but total interest amount paid increases

• Best suited for those who prefer small and easily manageable EMIs

You can make an informed decision by increasing or decreasing the loan amount and tenure in the EMI calculator to suit your financial situation.

How to plan your personal loan wisely

1. Take as much loan as you need

It is tempting to take a large loan amount, but taking more loan than you need can lead to higher EMIs and interest payments. Calculate your actual financial requirement and apply for a loan accordingly.

2. Choose the right time frame to repay the loan

Your EMI amount depends on your loan tenure:

• Shorter tenure → Higher EMIs, but lower overall interest payout.

• Longer tenure → Lower EMIs, but higher overall interest payout.

With the help of EMI calculator, you can choose the right tenure based on the trade-off between your loan repayment capacity and interest savings.

3. Compare interest rates before applying

Compare different loan offers and choose the one with the lowest interest rate for your profile. Even a small difference in interest rates can save you thousands of rupees over time.

4. Maintain a good credit score

If your credit score is above 685, you are more likely to get a personal loan with favorable terms. If your credit score is low, try to improve it before applying.

5. Find out the additional charges

Here are some things to consider before you complete your loan process:

• Processing fees and related charges

• Prepayment or foreclosure charges – Some loan lending institutions offer the facility of prepaying the loan without any penalty, which helps you repay the loan as quickly as possible.

6. Use automatic EMI payment method

Not paying the EMI on time may result in a penalty and may also lower your credit score. Avail the auto-debit facility to pay the EMI on time every month.

7. Make partial payments when possible

When you receive a bonus or have extra income, consider using a portion of it to partially repay your loan. This reduces the outstanding principal amount and helps you save on interest costs.

If used wisely, a personal loan can be one of the best financial tools to help you. Before applying, always use a personal loan EMI calculator to see how much EMI you can comfortably pay. This way your monthly budget remains stable and you don't have to worry about repaying your loan.

* terms and Conditions apply