Monday, 27 February 2017

Personal Loan EMI Calculator

We all want to increase our wealth and save for future. For that we invest in various investment schemes. Managing money properly needs some calculations and awareness. Calculation is needed to estimate the return and find the right amount for investment. Awareness is required because time to time government regulate monetary bills and based on that financial institutions launches various schemes. Proper understanding of both will create wealth for us. Now coming to our topic, “Personal Loan EMI Calculator”. Most of the people buy their car or home through bank finance. Banks provides Car loan for vehicle buying and Home loan for home/flats buying. For both the loans banks fixes the EMI i.e. Equated Monthly Installments and the time period of payments.  We usually take home loan or a car loan due to shortage of funds. Everyone wants to repay his or her loan as soon as possible to get free from liabilities. Therefore we want to optimize the loan amount and EMI value so that it does not become a burden.  For this we need an emi calculator, because at bank nobody gives time to entertain us in this regards. A personal loan emi calculator is more useful than an online emi calculator. I have designed one such Excel based emi calculator for home loan which is fully customized in the way we require the output. This calculator is basically for Home loan optimization but it can be used for car loan also. You can download the calculator from the link given at the end. It is also available in ‘Top Download’ section on Side panel.

The main requirement of personal loan emi calculator is to guide us on the financial figures before going to a bank. With this we can fix our Loan figures and EMI values. Simply we require the ongoing interest rates of bank.

Calculate EMIs
The simple calculation it will do is to find the EMIs for the given loan amount, tenure and rate of interest. It also calculates the total Interests and Principal amount to be paid for repayment of loan. It shows the division in a Pi-chart for clear understanding. Why we stressed upon EMI values?? Because, EMIs are fixed once for all, and whether it is a burden or grace is a matter of deep thinking for all of us.

Compare EMIs
This option is given to compare EMIs by keeping three different tenure. Some people suggest keeping longer period for loan and some suggest completing the loan as soon as possible. Therefore in this tool you can compare the EMIs for three different tenure or loan amount, and select the EMIs that best suits as per your income.

Plan Your Pre-Payment Schedule and Decide for Higher Tenure of Loan
Banks give options of partial payment, where you are allowed to partially repay your loan. Some people use this option when they get any extra income or yearly bonus. When we opt for partial payment the bank generally keeps the EMIs unchanged and reduces the total nos of EMIs. This is a good option that gives us freedom to repay the loan before its full tenure and avoid burden of interest. In the emi calculator for home loan one can calculate the reduced nos of EMIs by selecting the partial payment option. Select the partial payment schedule and calculate the remaining Principal and Interests. Using this calculation one can decide to keep higher tenure say 25 years or 30 years and keep lower EMIs. Later on try to repay the loan using partial payment option.

Finally Calculate Break-Even to Sell Your Property
We buy any property either for self use or for investment. If we buy for self occupancy than we should try to finish the loan as soon as possible to reduce the interest amount.  A house bought on home loan becomes twice as costly as we buy on cash. But if we are buying for investment purpose than we should really do some maths to find the right price and right time to sell the property. In the personal loan emi calculator you can calculate the total worth of any property bought on loan after certain period. One can also calculate the breakeven price of Home, so that he can sell the property at better price at right time.


{Source: https://www.how-to-calculate.com/blog/personal-loan-emi-calculator/}

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