Finding a loan can be incredibly daunting and complicated. There is often confusion when it comes to the loan term. Interest rate and repayment amounts. A loan repayment calculator can help give you some clarity around the numbers and help you make more informed decisions.
Following are some tips from Shiv Nanda from Money Tap on why using a repayment calculator can help.
Whether you have an existing loan, need a home loan, or you’re just curious, a loan repayment calculators helps you with giving your insights and context. A loan repayment calculator can help answer;
- What is the maximum loan amount I can afford?
- How do I compare my existing loan offers?
- How can I pay off my loan early?
- If I increase my repayments how much money will I save in interest?
- How much interest will I pay on my loan?
Tying different combinations of the repayment variables such as your loan term, interest rate, loan amount, principal amount, etc will generate a unique result, helping you make a more informed decision.
A loan repayment calculator is a fast and insightful way of calculating your loan repayments. Using the calculator before applying for a loan helps you:
- Plan your finances beforehand – Knowing the repayment amounts in advance helps you plan your expenses accordingly. So, no missed payments.
- Compare different loan offers – If you have a few good home loan offers, a loan repayment calculator helps you take a closer look at all the offers and help you choose the best deal.
- Decide loan term and additional repayments – With the help of a loan repayment calculator, you can test the values of the principal amount, interest rate and loan term as many times to come up with a result that’s most suitable to you.
So have a play with our calculators. It’s free and totally no obligations whatsoever.
Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics.
Thanks Shiv for your tips.