Now why go all the way down to the bank when there is this advantageous tool online known as the Eligibility Calculator?

A handy tool for loan customers - the EMI calculator
Product Partner Wednesday, January 24, 2018 - 10:19

If you’re contemplating taking a loan or have already taken one, an EMI calculator is an extremely useful tool. It helps you understand how your loan works and how much you will eventually pay back the bank.

Brains in a box

The invention of the calculator was a brilliant one! For somebody who dreaded math class, the calculator was like a Red Bull! It gave you wings! Actually it made our brains take a backseat with math but nobody’s complaining! It has no doubt made life easier and it’s one of those things we don’t realize we can’t live without. Ever used a calculator for something like 100 + 150 and realized you knew the answer (facepalm!) but hit “=” anyway? That’s how deep calculators are running in the river of our mind.

Sooner or later, most inventions become obsolete, but not the calculator! The regular calculator started as a tangible device we could carry with us, have at our desks, or in a drawer somewhere. It made the transition to the virtual world and is now an inbuilt application on our phones, tablets, laptops and computer. They even put it in watches! Most of us don’t even pay heed to this tiny device and its importance, but if you take a step back and think about how many times you’ve used the app, you definitely can’t remember.

Breezy Banking

It’s no surprise that the calculator seamlessly bonded with the world of banking. It made financial life so much easier and reduced the percentage of errors. With banks transitioning into the online world, waiting in long queues, having discussions with different bank employees, and wasting a whole lot of time there pretty much vanished. Nowadays, we can carry our banks with us on our mobiles and keep them at home on our computers. It’s paved the way for new innovations in the life of the calculator as we can put it to optimum use online.

Finding your best bet

With all this advancement, banks have serious competition. And you, the customer, have a choice. Let’s walk into a grocery mart. You might see people comparing products of different brands to see on which one they would get a better deal. Shopping like that with every product you need to buy could take hours. If you had to visit different banks and compare loans in a similar manner, it could take you days and even months. But with the help of new age technology and innovation, there are third-party websites that provide you with all the information you need from different banks within seconds. You can compare credit cards and all types of loans side by side on your computer or mobile screen like you would compare tangible products in your hand at the supermarket. Who would’ve thought!

Did you make the cut?

The first thing you need to find out is if you’re eligible to avail a credit card or a loan from the bank. If you make too many loan or card applications, this reflects badly on your credit score as banks think you are hungry for money. So, it’s best to find out if your loan or credit card eligibility before you submit an application. Now why go all the way down to the bank when there is this advantageous tool online known as the Eligibility Calculator?

What you give

To use the calculator, the calculator needs:

  • Your location
  • Your employment or company name
  • Your monthly salary
  • The loan value you are looking for

What you get

The tool does all the work for you, and gives you a list of loans or cards you would be eligible for. You can then compare offers from different banks, choose the best, and apply online itself.

What more

Sometimes looking at percentages doesn’t give us a realistic picture. Don’t you want to know how much actual money you would be paying every month before you apply for a loan? Or how much interest you’re going to be charged? EMI calculators help to see real figures rather than percentages. So here’s where Loan EMI calculators become the most useful.

What you give

 To use the EMI calculator, you need:

  • Loan amount
  • Interest rate
  • Any processing fee
  • Loan Tenure

What you get

  • Without ever setting foot into a bank, you could determine:
  • Your EMIs (Equated Monthly Instalments)
  • Total Interest payable
  • Processing fee amount
  • The calculator also throws up an amortization schedule which will give you a picture of the detailed expenditure you would incur on your loan through the years.

If you plan on applying for a home loan, you can know details such as the EMI amount, interest payable and cost of the loan even before you fill out an application form.

The dawn of a new age

These EMI calculators available to the public are relatively new, but a path is already paved for a new age where we won’t be able to take a loan without them - be it a home loan, education loan or car loan. These calculators help you make a quick and smart decision. Furthermore, it brings the reality of the cost of a personal loan right in front of you in simple terms. People can then make a knowledgeable decision as to whether the loan would be worth the purpose.

This article has been produced by TNM Marquee in association with BankBazaar.