Calculate Simple Interest using a Loan calculator
When it
comes to a loan, everyone seems a little bit confused. You must be worrying
about the different variables of interest charge. Calculating it might seem a
hazy task to you. But there is no need to worry. You can seek the advantages of
an online loan calculator that makes your task
easier. With the interesting loan calculators, you can now calculate the
personal loan interest amount in a very simple way.
How
to calculate simple interest using a loan calculator
All of the loan calculators that you use provide instant results based on simple interest rate formula. The formula is I = P * r *T where I stands for interest the amount, P for the principal amount that you are taking as a loan amount, r stands for rate of interest on which the lender is providing you the loan and T stands for the tenure in years for which you are going to take the loan.
For example, if you are taking a personal loan of INR 1 Lakh for a tenure of 3
years on a flat interest rate of 8% per annum.
So,
your total interest amount using a personal loan interest
calculator will be: I =100000*8*3/100 = 24,000. Hence, on this
repayment of 1 Lakh loan amount, you will have to pay an interest of 24
thousand in three years.
Let’s
calculate the monthly payment amount now
Along
with this, you can also check the monthly payment amount by dividing the total
amount by the months for which you are taking the loan. For the above
calculation, we can now divide this 1 Lakh 24 thousand into 36 months and it
results in INR 3444.44. This amount of 3444.44 is what you have to repay on
monthly basis to your loan provider.
The amount calculated above may vary here and that is in terms of the loan
processing fees and GST, if applicable. Different lenders have different terms
and conditions related to personal loans and you need to have crystal clear
information when communicating with the representative.
Must Read: All you need to know about an EMI calculator
Words of Wisdom: Use an online loan calculator in
sync with the proposal you have got from the service providers and decide what
suits best as per your income and repayment goals.
Always
remember, a reputed personal loan providing institution will never confuse you
and they will provide instant answers for all of your queries.
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