When we take a personal loan, we need to repay the bank with the principal amount accompanied by the interest amount and the EMI calculator is a tool that is used for the calculation of monthly EMI. When we use the calculator, we will be aware of the amount we have to pay beforehand. There are many benefits of using an EMI Calculator such as, we know the amount of EMI that we have to pay beforehand, and hence we can make necessary budget changes to make our lives financially smooth. Secondly, we can change the data to test out every single scenario and make decisions according to it. The next thing is that personal loan calculators are very easy to use and they give accurate and trustworthy results. Additionally, if we have all the information in advance, we can plan our future and ensure that we make the payments on time and maintain a healthy credit score.

A personal loan calculator is very easy to use and it can be used by almost everyone. The working principle is very basic, we input the data that is required by the calculator and it shows all the information we need. The calculator needs the following data to run the algorithm and determine the results we desire. Firstly, we have to enter the Loan Amount that we will be taking from the bank, next comes the rate of interest at which the bank has offered the loan amount to us, and then finally we need to enter the tenure or the duration of the loan. It’s just that easy after entering the data within seconds the calculator displays the monthly EMI, total repayment amount, and the total interest that we are liable to pay on the principal amount. 

The first aspect to compare a personal loan must be the rate of interest the bank is offering. The rate of interest is one of the most important factors while finalizing a loan for yourself. After finding the lowest interest rate for your loan look for charges that will be applied on your loan. Make sure that you have looked at all the charges that are applied as it makes a huge difference when you are paying back the loan amount. When you are applying for a loan, you should fit in with the eligibility criteria of the bank. The next thing you should keep an eye out for is the disbursal time especially if you are in immediate need of funds. Lastly, make sure that you read the fine print very carefully as sometimes the lender may charge you with some hidden charges or make some stipulations that you are not comfortable with. So, sign the documents once you have read everything in detail.

There can be many types of additional charges while taking a personal loan in the UAE. A late payment fee is charged when you are late in submitting an EMI. The amount is generally pre-decided for a late fee. Next, there is a processing fee which is the cost of administration-related tasks. The cost of this is very low, generally around 1% of the amount. Then comes the early settlement fee that you are liable to pay if you pay the loan before the allotted time. This might sound wrong as you are paying back the loan earlier still you have to pay a penalty but the reason for this is that the lender covers the interest lost on the duration of the remaining time. Then comes the disbursement fee which is paid to the lender so he/she considers you a borrower. The next one is the credit insurance fee which you can claim if you fail on paying the loan in the allotted time frame. If you wish to cancel the loan after it is approved then you might have to pay a charge. It depends entirely on the lender. These are some of the common charges that are charged while applying for a personal loan in the UAE.

To apply for a personal loan, you need to possess a certain set of documents that need to be verified by the lender before they lend you the money. The documents include A duly filled application form, A valid passport, a visa, and an Emirates Id, A valid Visa to prove residence for the dispersal of a personal loan in the UAE, a Bank statement for approximately 3-6 months, and a salary slip. These documents are attached with the application form and after the verification, you are considered for the loan. Now, let’s have a look at the process of the loan application. First of all, determine your loan requirements and then compare the rate of interest and other types of charges that you are liable to pay. Next, calculate the monthly EMI using the calculator and check for the credit score and other eligibility criteria specified by the lender. When you are done with everything fill in the application form upload the documents and wait for verification. Once the documents are approved you are good to go and your loan is approved and disbursed.