For people living in the city, chances are that they’ve already heard about personal loans either from their banks or nearby legal moneylenders in Singapore. These loans are excellent for many expenditures that one may encounter, from simple leisure shopping to more serious matters, such as emergencies.
But despite its benefits and ease of access, it’s good to keep in mind that it’s still a financial responsibility that must be fulfilled as best as possible. If you’re planning on applying for one soon, it’s in your best interest to ensure that you can repay your dues, all while having enough in the bank for your daily necessities.
To aid in that end, a personal loan calculator is indispensable. Read on to learn what it does and how it can greatly benefit you.
What can a personal loan calculator do for you
Essentially, a personal loan calculator allows a borrower to be fully aware of crucial details regarding a loan, such as its monthly interest costs and overall total cost. It does this by calculating certain variables, such as the agreed interest rate, loan tenure, and principal amount, to name a few.
By fully utilising this valuable tool, a borrower will be able to fully evaluate their finances and come up with an informed decision in regards to taking up a certain loan agreement or not. Additionally, it can also provide insights into which loans are more suited for their needs and budgets.
Benefits of a loan calculator
- Verifies a borrower’s loan eligibility
A primary use of a personal loan calculator is to confirm eligibility for a loan. For it to do its work, one typically has to input key data about their financial standing, such as their annual income, credit score, and the like.
With the help of the data provided, the loan calculator can then recommend certain instant cash loans in Singapore that are well-within a borrower’s financial means. This output allows them to significantly limit their search, saving time and allowing them to narrow down options quicker.
- Computes and provides you with the best interest rates
Being able to calculate an ideal interest rate is another main benefit of a personal loan calculator. With this tool at a borrower’s disposal, they’ll be able to make key decisions regarding the loan that they’ll be applying for, such as prioritising a lower interest rate over the tenure term and vice versa.
Ultimately, it can help one choose the best loan package for their needs whilst keeping into consideration the desired loan amount.
- Assists in your financial management and budgeting
Managing the rest of your finances is crucial when you’re obligated to repay a personal loan. With the aid of a personal loan calculator, a borrower can gain a bit of foresight regarding their expenses, allowing them to make sound financial decisions beforehand.
For instance, if a borrower has certain obligations that can’t be put off, that could allow them to change factors about their desired personal loan. They could potentially extend their loan tenure or loan a lesser amount to adjust to their responsibilities. In contrast, they could also cut out a few unnecessary expenditures to get a higher loan principal. Examples of such optional expenses could be subscriptions to streaming services or other amenities, like a gym membership.
As much as possible, use a personal loan calculator before you decide on applying for a loan and even during your tenure.
By having a clear idea of your new responsibility before taking it, not only can you choose the best option for your needs, but you’ll also be able to prepare for your monthly dues well ahead of time.