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24 January 2020

How Loan Calculators Can Help in Managing Personal Loan For Home Renovation

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Home improvements and renovations become a major part of your life when you own a house. Whether you want to add more rooms or change the existing interiors, home improvements are costly affairs. Personal loans are greatly useful in curtailing the expenses if your income and savings fail to meet the requirements. Using a personal loan calculator, you can understand the exact EMI amount and interest payments for a loan even before applying.

Understanding the various aspects of a personal loan for home improvement

EMI or monthly payments – Regardless of the amount of loan you avail, this monthly repayment system remains the same for each one. On a predetermined date of each month, your lender is authorized to auto-debit the EMI amount from your account. Failure to repay loans on time can have both short-term and long-term implications.

Loan quantum – The amount of money you want to borrow as your home improvement loan is known as the principal or the loan quantum. Your EMIs and total interest payable depend mostly on the loan amount you avail. While substantial sums are always desirable, keep in mind that availing larger loan amounts will lead to higher EMI payments.

Total interest on the sum – Before availing any loan, you can easily discover the tentative rate of interest to be charged by the lender. Use the calculator to figure out the estimated total interest payable on the sum. Also remember, longer repayment tenor results in increased overall interest payable for a personal loan.

Why use a calculator before loan application?

While you are free to avail loans without utilising the personal loan calculator, doing so would be an unwise move. Listed below are some appropriate reasons to use this handy online tool.

1. It allows you to calculate your exact EMIs beforehand so that you can weigh in whether a particular loan option is affordable or not.

2. The calculator helps you determine the most suitable loan quantum, based on the EMIs. Reducing the loan amount also decreases your monthly payments. Therefore, using the calculator, you can arrive at the perfect loan amount that is affordable for you.

3. Thanks to the quick and easy calculations, such a tool is ideal when comparing home improvement loans offered by different financing companies. If you avoid such research before availing a loan, you may end up with an increased EMI burden simply because you picked the wrong lender.

However, before proceeding with the calculations determine whether you actually require the credit. In some cases, upgrades to the house can seem more expensive than they really are.

Personal loans: The best source for funding your renovations

One of the biggest mistakes when starting home renovation projects is to not have a clear source of funding available. Here are some reasons why you must consider to apply personal loans to finance home improvements.

  • Significant loan amounts – Although unsecured loans, most reputed lenders offer high-value personal loans to eligible applicants.
  • Flexible tenor – You can opt for the repayment period that suits your financial conditions best. Top lenders offer personal loans with tenor options of up to 60 months.
  • No need for collateral – As mentioned previously, personal loans are unsecured forms of credit.
Therefore, you do not need to pledge an asset against the borrowed money. Simply show a sizable income and a decent credit score to avail a loan at the most beneficial terms.

Furthermore, the varied choices available in the market make it one of the best resources for home improvement. Using a personal loan calculator should make it easier for you to choose the right lender.

Interest rate calculators have made life easier for loan applicants, allowing them to avail a loan in an informed manner.

Also Read: How a Self Employed Person can Avail Personal Loan in India?💰

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