Here are some advanced tips for using EMI Calculators to save money

Whenever you plan to borrow, the foremost thought in your mind may be how to save more. By doing a little research about lenders in the financial marketplace, you can understand interest rates and loan terms a little better. However, to make repaying loans as easy as applying for them, make sure to plan it carefully.

One way to do this is to calculate interest rates using an EMI calculator and compare the options. This will help you choose on that’s within your financial capacity. Read on to know 5 practical tips on how to use an EMI calculator to save more on your loan and repay stress free.

Tip #1: Choose the Ideal Loan Principal

Your principal loan amount is crucial in determining your EMI amount and interest dues. Therefore, choosing the right loan amount is important for saving more. An EMI calculator ensures that you avoid the risk of over-borrowing and paying more as interest.

Use the easy and simple Bajaj Markets: EMI Calculator App to determine your loan amount. Enter your preferred loan amount and other terms in your chosen loan calculator. Once done, you can adjust the amount while keeping all other figures the same to decide how much you can afford to repay each month.

Tip #2: Compare Offers for Lower Interest Rates

The interest rate has a bearing on what your monthly instalment comes to. Choosing the lowest interest rate allows you to save more in the short and long term. This is where an EMI calculator comes in handy, allowing you to quickly compare your options.

Here is how EMI and net payable amount differ with interest rate if you take a personal loan of ₹25,000 for 12 months.

Disclaimer: The calculations are for illustrative purposes only and rates as well as EMIs may vary.

Tip #3: Choose a Shorter Tenure

Generally, the tenure option for a loan is flexible, so you can decide on a budget-friendly EMI amount. An EMI calculator helps you choose the right tenure with ease. Simply tweak the tenure while keeping the loan amount and interest rate the same to see the results.

Here is how your repayment varies with your chosen tenure if you get a personal loan of ₹25,000 at an interest rate of 10.50% p.a.

Disclaimer: The calculations are for illustrative purposes only and rates as well as EMIs may vary.

It is evident from the table that choosing a longer tenure allows you to pay a more affordable instalment amount per month. However, increasing tenure results in higher interest payments. Thus, keeping your loan tenure short is the best thing to do to save more.

Tip #4: Get a Balance Transfer

When have already have a loan, you can transfer your outstanding loan amount to another lender to enjoy a lower interest rate with the balance transfer option. Transferring your loan can help you save money when you choose the right lender.

Before taking this step, calculate interest rates using an EMI calculator and compare lenders to zero in on the best deal. Some lenders also allow you to restructure your loan, and you have the option to change your tenure.

Tip #5: Plan to Pay Off Your Loan Early

Another smart way to avoid paying higher interest is to go in for foreclosure by paying off your dues before the tenure ends. When you use an EMI calculator, it creates an amortization schedule for your loan.

This schedule reveals the outstanding balance after each EMI and the interest component for all EMIs after it. Using this information, you can decide on when to foreclose to save the most.

With the help of these tips and an EMI calculator, you can easily plan your loan without adding to your financial burden. To get started, simply download the

Bajaj Markets: EMI Calculator App.

It gives you access to multiple EMI calculators for loans as well as investments and insurance premiums, making it the only tool you need for financial planning. Download the Bajaj Markets: EMI Calculator App from the Play Store or App Store to start saving on your loans.