Applying for a personal loan for the first time? Here’s why EMI is important

Applying for a personal loan for the first time? Here’s why EMI is important

Personal loans are both beneficial as well as challenging. Today, they are one of the most essential financial tools in the event of a cash crunch. Thorough research and calculation are essential for deciding on the best loan scheme. All that becomes easier with a personal loan calculator. From the name itself, it is clear that it helps you to figure out the EMI’s you need to pay. These EMI’s are paid to the lender on per month basis.

With an EMI calculator or a personal loan calculator, you can determine your EMI, loan tenure, rate of interest, loan eligibility, credit rating, and so on. In short, you can say that an EMI calculator reduces your headache it critically analyze all aspects of your personal loan.

Why EMIs?

Equated monthly instalments or EMI’s are proving a boon to all those who are dependent on a single income source. If you are incapable of making one time payments, EMI is the best option available for you. Here are some of the reasons why EMI holds importance in today’s world:


With EMI’s comes in affordability. Things which you once thought to be a burden on your wallet are now simplified. Instead of making full payments, EMI’s are convenient when it comes to fulfilling your luxurious dreams while balancing your other finances.


Availability of EMI option gives you the freedom to decide on what amount you want to pay as an instalment. Also, you can decide your EMI duration all by yourself. EMI flexibility helps you to optimize your financial situation and income.

Tax advantage:

With EMI’s, you have an advantage in tax payment. For example, you can use EMI’s to buy shares. After sometime, when you want to sell these shares, you will have to pay only 10 percent of your capital gains tax. On the other hand, if it was not through EMI, you would be levied with 45 percent income tax on the sale of shares.

Power to purchase:

With EMI, you have a liberty to purchase items, which otherwise you might ignore buying. With EMI, comes affordability and accessibility for those who have insufficient funds to buy things that they want.

EMI’s makes you capable to invest in something which otherwise would have been a dream for you. Along with common man, traders have been benefited to a greater extent in trading expensive products.

As here you will be paying in instalments, you are free to purchase anything – be it either a home or car or some jewellery.

There is no middleman:

When it comes to some loan schemes, you have a middleman to charge you with the processing fee. With EMI’s, the need for a middleman is ruled out. You will be paying your EMI directly to your lender and your entire payment process shall be free of all hassles.

EMI’s are customer-friendly as far as you are aware what’s in it for you. For those who are first time loan borrowers, personal loan calculator is the smartest move to define your entire EMI in process in a nutshell.

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