How to find the best rates for a loan by using a loan calculator?

A loan is an ideal financial assistance anytime you require large amount of funds. But when you apply for any of the different loans, certain factors need to be considered before a decision is taken. These factors include income, interest rates, repayment tenure, principle amount and many other important factors. But how can one find the best rates that will suit all your needs without causing any financial burden?

By using the EMI calculator, one can easily get the ideal rates taking into consideration all the factors that are required in a loan. Let us take a look at how we can find the best rates using this calculator:

Calculate using income
One of the factors that can be used to calculate the ideal rates is your income. This factor, in turn affects the interest rate and the repayment tenure. Based on the amount you earn, you can use the EMI calculator to calculate how much funds you can set aside to pay for the loan. Additionally, this will help you take planned decisions on how to strategize your earnings so that you have sufficient funds to invest in other options or other savings while leaving you with sufficient funds for your daily needs.

Calculate using interest rates
The interest rate is calculated keeping in mind primarily the principle amount and the income you are earning. This will affect the overall amount you will need to repay the bank or financial institute in addition to repayment tenure. Using the EMI calculator, you can calculate the ideal interest rate as per your income, repayment tenure and principle amount to suit your needs. A high interest rate means a short repayment tenure and vice versa. However, you must satisfy the necessary requirements in order to pay off the high interest rates, else you risk putting yourself in a situation where you will be unable to pay off the loan and incur penalties.

Calculate using repayment tenure
The repayment tenure is the period of time you will require to pay off the borrowed funds along with the added interest. Depending on the loan type, a repayment tenure can last anywhere between 10 to 30 years. Additionally, it also depends on the income you earn. If you earn a high income, you can easily pay of the loan with a high interest rate. By using the EMI calculator, you can select the appropriate rates that will affect the repayment tenure. You should select the appropriate time period to repay your funds leaving you with sufficient time to invest in other loan opportunities.

To get the best rates in a loan, you must use all the available financial tools. The EMI calculator is one such tool that will go a long way to assist you in your decision to take a loan.