Personal Loan Calculator
This personal loan calculator figures your monthly payment and total interest cost based on the purchase price, down payment (if any), interest rate and term.
Personal loan is the borrowing of money from financial institutions intended purposely to support your additional personal needs such as children’s education, vacation, debt consolidation, buying car, home improvement expenses, and other unexpected expenses that is not within your budget.
Personal loans are easy to apply but it usually comes with high interest rate. Most personal loans do not require collateral. Before applying for a personal loan, ask yourself if you really need it and if you can afford to pay it. Use the personal loan calculator above to check your monthly payment. Enter the amount you plan to borrow, the down payment (if any), the annual interest rate and the number of months you will be paying the loan. It is practical to compare all the loan offers before deciding which one to take.
Only For Emergencies
Personal loans will be your best support if you are short of funds during emergencies. Personal loans do not usually require guarantors and the process approval is fast. But usually the interest is very high. The rate of interest for personal loans comes as much as high as 15-25% per year. But this is better than credit card interest rates. This is one of the reasons why personal loans are often used to pay off credit card debts. If it is not really necessary, try to avoid taking up a personal loan.
Do Not Borrow To Spend For Luxuries
When applying for personal loans, make sure that you do not use it for your luxury needs. What is the point having a luxurious gadget if you cannot enjoy it without worrying on how long you’re going to pay it or where will you get money to pay the loan. If you cannot pay cash to buy your luxuries, it simply means that you cannot afford it. If you are set of taking a personal loan, shop around and find the loan with the lowest interest rate that won’t hurt your pocket.
Personal Loan Vs Credit Card loan
If you are planning to borrow only a small amount, it is more practical to use the credit card since you can pay it off anytime. If you plan to pay your borrowing on a longer term then personal loan is more suitable since it has a lower interest rate compared to credit cards. Both personal loans and credit card debts are unsecured debts, therefore, both types of debt are expensive. Be careful and ensure that you understand both how personal loans work and how to get the best price for the loan you take before you sign up for anything. Check your financial status and calculate you monthly loan payment using the personal loan calculator to determine if it fits your budget.
Personal Loan Calculator Terms and Definitions
Be sure to read the terms and conditions before applying for a personal loan. Here are samples of you the terms commonly used in the loan agreement:
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