A Personal Loan Prepayment EMI Calculator Helps Compute Monthly EMI
You can enjoy a stress-free, happy life by saving the amount of interest you pay on your personal loan. Prepaying a personal loan merely means repaying the principal amount before the loan’s tenure ends. Paying off the principal sum can be done in full or in part.
To understand the EMI, the prepayment interest rate, and other necessary variables, you can also use a PL EMI calculator
Personal Loan Prepayment Calculator Benefits
Benefits of using a personal loan prepayment calculator include:
Easy Debt Relief
You can live a stress-free life free of debt and save up some money by prepaying the principal on your loan. Personal loan prepayment also lowers EMI expenses because a portion of the principal will be waived.
Reduce the Principal Amount
Personal debts can be prepaid without making the full payment all at once. Also possible is a partial prepayment of your debt balance. In spite of the fact that you won’t be able to save any money on interest, the debt will be significantly lower. The sum of unpaid principal is also reduced when you prepay an outstanding loan. Compared to the current interest rate, the EMIs will be lower. For personal loans – apply online and get approval instantly.
Reduce the Interest Amount
The lock-in time for most lending institutions is one year, meaning that you cannot make any partial or full debt repayments for a year. After the year is up, you can prepay the remaining debt and save a significant sum of money.
How a Personal Loan Prepayment Calculator Work?
The EMI requirement for personal loans can be revised with the help of an EMI calculator with prepayment. The amount, the loan term, and the interest rates must be entered in the necessary sections of the PL EMI calculator.
Information such as loan balance, number of EMIs paid, amount of prepayment, interest rate, and the tenure of the loan is to be entered in the pl emi calculator. Using a personal loan EMI estimator with a prepayment option, you can figure out how much money you will save on the EMIs.
How to Use a PL EMI Prepayment Calculator?Simply follow the steps listed below:
- Step 1: Enter Principal Loan Amount
- Step 2: Enter Loan Duration
- Step 3: Enter Loan Interest Rate
- Step 4: Select Loan Part Payment Amount
The revised PL loan tenure will now be visible on your screen.
Factors Affecting Personal Loan Prepayment
Personal loan prepayment is influenced by the following variables:
Tax Benefits
A tax exemption of up to Rs. 1.5 lakh per year is permitted by Section 80C of the Income Tax Act. The financial advantages will significantly diminish if you choose partial prepayment.
Rate of Interest
While applying for a personal loan, be careful as they have greater interest rates than home loans. The debt of your personal loan should therefore be prepaid if possible. To pay off your obligations completely or partially, you can use the personal loan prepayment calculator to determine the rate of interest.
Ideal Prepayment Time
Interest on your principal sum is reduced when you prepay personal loans. The early years of the loan’s term have higher interest rates. So, loans must be ideally paid off early.
Prepayment Fees and Penalties
These fees are imposed by financial institutions to protect them from the loss of potential interest earnings. Prepayment fees will be added to the debt if it is paid in full ahead of schedule.
Conclusion
Almost all financing businesses have a PL EMI calculator on their official websites. It is recommended for borrowers to make use of it to quickly determine their prepayment amount.
