Licensed financial providers like banks and Non-Banking Financial Companies (NBFCs) sanction loans as a significant part of their service each day. A personal loan is one of the many loans that help people overcome their financial requirements and monetary troubles. The loan is unsecured, and so one can avail it without needing to pledge an asset as collateral to have the money. A personal loan is granted for a certain period with an interest rate attached. After that, the loan term or tenure period is sanctioned, and by the end of the tenure, the principal amount must be paid in full with the owed interest amount.
Construction, business expansion, scientific research, medical expenses, investment, weddings, higher education, home renovation or any other financial emergency can be met by availing a personal loan. They are multi-purposeful and advantageous in many ways, but they are still loans that require repayment on time. The Equated Monthly instalment is the interest amount paid each month until the loan term ends. And the EMI tends to take up a considerable portion of your monthly income and has a high chance of altering your lifestyle but managing it without much change is the essence.
Monthly instalment debts require constant care, and defaulting on the payments in addition to stressing you much will only lower your credit score and place a bad statement in the credit report. Therefore, choosing the instalment amount you can afford is necessary. The interest rate and the EMI amount depends majorly on two factors. The principal amount availed, and the tenure opted. A Long tenure has a low-interest rate, and a short tenure has a high-interest rate each month. However, the total interest rate in a long tenure is considerably more than choosing short tenure with low interest. But, if you don’t want to alter your lifestyle and make advanced adjustments to your current budget, then a long tenure is the best way to do that. The principal amount’s part percentage is the interest rate. So, if the loan amount borrowed is high, then the interest amount becomes high even if the rate is low. For instance, the loan amount lent by the bank or NBFC is Rs 1 lakh then, and the interest rate is 9% per annum, then you will have to pay Rs 9000, but if the loan amount is Rs 50,000, So, then the interest amount becomes Rs 4,500. Therefore, choose the principal amount you want, adding an additional amount to your minimum requirement will not only increase your EMI but also be a significantly large amount to repay at the end of the tenure.
Benefits and features of a personal loan
A personal loan, as stated earlier, can be used for any purpose, and it has numerous other benefits like not needing collateral and having an online touch less scheme to avail it. An online touch less personal loan scheme is one where the applicant needn’t visit the bank or the financial institute to avail the loan or to have the money quickly. By applying online for the personal loan, after the verification process, the loan is granted immediately and the loan amount is disbursed in minutes after its approval. So, even if you are not in town, a personal loan can be availed rapidly. Also, as there is no collateral to verify and validate, the loan amount is pre-fixed. The applicant only needs to choose the required amount. The minimum loan granted is Rs 25 thousand, and the maximum amount sanctioned is Rs 40 lakh. The tenure ranges from 12 months to 60 months, and the interest rate starts at 9% per annum. By searching for an EMI Calculator Personal Loan on google, you can calculate the interest rate and apply for the loan according to your requirements.
ICICI is a world-renowned bank that is highly proficient in its financial services. The personal loan offered in this loan comes with impeccable features. ICICI Personal Loan EMI Calculator is available on the bank’s official websites for the customers to calculate and know all about their interest rates.
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