How to use an online loan calculator?

Even before you take a loan, it is important that you plan properly for it. One important tool that many banks have made available on their websites is the online loan calculator. Using an online loan calculator can actually help you plan your loan / financial commitments better. Here, we will examine how in a little more detail while also providing real-life examples of online loan calculators:

Using an online loan calculator

You will need to open the calculator, enter your current income details and your loan requirements including the amount that you are looking for, the tenor of your loan, fixed or floating rate of interest etc; the loan calculators will help you understand the quantum of loan that you are eligible for and will help you determine the monthly repayments that you can afford given your financial commitments. 

Examples

• The Housing Loan Calculator from Security Bank requires you to enter your annual income, the worth of your desired property and the loan tenor (from 1 year to 20 years). The calculator returns the loan amount eligibility, the down payment required and the monthly payment required of you. The calculator also returns a recommendation with regard to the maximum worth of a property that you can afford given your income levels.

• The Loan Calculator from Citibank is meant for use with personal loans. You enter a loan amount and tenor in months and the calculator on returns the monthly installment.

• MetroBank’s Home Loan Calculator requires that you fill in your name, your preferred interest fixing period, your desired loan amount, your gross monthly income and your preferred loan tenor in years (1 year to 20 years). Upon entering the required details and clicking “Compute”, the Calculator returns the monthly amortization amount, the income requirement based on your loan amount and the amount you can borrow based on your gross monthly income. There is also a facility to send the results to your email ID.

• The Auto Loan calculator from BPI Auto Loans requires you to enter your loan amount, your down payment in percentage terms (10%, 20%, 30%, 40% or 50%) and payment tenor (12 / 18 / 24 / 36 / 48 and 60 months).

Third-party websites

There are also third-party websites that provide you with loan calculators as well as a selection of loans from various banks based on the details that you provided.