Using Bank Loan Interest Calculator, you can simply calculate interest on loan that will be paid by you along with the Principal amount. This free tool will help you to calculate interest on any type of loan such as home loan, education loan, car loan, bike loan, personal loan, business loan, etc over the loan tenure period.
Checkout: Student Loan Calculator
How to use Bank Loan Interest Calculator?
The bank loan interest calculator is very simple and convenient to use. For this, just follow the step-by-step guide given below.
- Step 1: First of all, enter the loan amount or the amount to be taken in the loan amount section.
- Step 2: After the loan amount, enter the percentage of interest to be charged on the loan amount in the interest section.
- Step 3: Provide the information about the time in Months for which the loan is being taken, under the loan tenure.
By providing different you can easily calculate the interest on the loan that would be taken by you. By doing this you can simply calculate the interest amount at different interest rates and also by varying Loan Tenure you can also check, how the interest amount is changing over time.
Features of Bank Loan Interest Calculator
Some key features of this Bank Loan Interest Calculator are as follow.
- Total Interest Amount: This will tell you, how much interest will be paid by you over the period of the loan taken.
- Principal Amount: It’s a loan amount that has to be taken by you from Bank or NBFC or from any private lenders.
- Total(Principal+Interest): This section will provide information about the amount that has to be paid by you to the lender. It includes the principal amount and interest amount.
- Monthly EMI: This section will tell how you how much monthly installment has to be paid by you, over the period of the loan taken.
Checkout: Mobile EMI Calculator
How to select the best loan for yourself?
There are many things that we must keep in mind while taking a loan. By the way, the needs of every person are very different and very unique to each other. If you are planning to sanction a loan for yourself for any purpose, then considering these points will really help you in the long term.
Interest Rate: The interest rate plays a crucial factor in any type of loan. On one hand, the lender expects a higher rate of interest from you for his own benefit. While on the other hand, you expect low-interest rates. So that the loan can be easily repaid in the long run.
Always try to gather more and more information related to the loan that you want from different sources. Always try to go with the low-interest rates as it will save you a lot in long run.
Repayment Schedules: This means in how much time you will return the loan amount along with interest to your lender. The longer the repayment schedule, the more convenient will be there, but the interest will also have to be paid more. So on the other hand, repaying the loan in less time simply means that you will save a lot of money in the form of interest.
Hidden Fees and other Charges: While taking any kind of loan, keep in mind the hidden charges and fees associated with it. Don’t let the lender fool you in the name of other charges.
Key Role of Interest Rate in any Loan
The rate of interest plays a very crucial role while taking out a loan. The reasons behind this are as follows.
- Interest rates allow the lenders to make a profit from the loans.
- Generally, the rate of interest increases the cost of borrowing money. This means the higher the interest rate, the more expensive the loan will be.
- A higher rate of interest will make it riskier to borrow money. The higher the interest rate, the greater the chance that the borrower will default on the loan.
- Generally, lenders take the risk that borrowers will not repay the loan. Here interest rate plays a crucial role by offsetting the risk.
Read Also: Today Bank is Open?
Benefits of Low Interest on Loans
The benefits associated with lower interest rates are as follows:
- It is more affordable for borrowers.
- Lower Interest rate attracts borrowers easily.
- It will significantly reduce your monthly payments.
- It will reduce the interest amount paid by you over a longer period.
- A lower interest rate will help you to reduce your overall cost of the loan.
The Bank Loan Interest Calculator is designed to calculate your Loan interest over the tenure of the loan charged by a Bank or any other lenders. By providing some basic information like Loan Amount, Interest Rate, and Loan Tenure in this minimalistic tool, you can simply calculate and gather your data. Feel free to share your feedback regarding this tool by commenting down below.
Q: How do I calculate interest on a loan?
Ans: Just provide some basic information related to loans in this tool, like Loan amount, tenure, and interest rate to calculate the interest on a loan.
Q: What is the principal on a loan?
Ans: Principal amount on a loan is nothing but the amount taken by you as a loan from the lenders.
The Article written by the indoGeeks Team is well researched from different sources. Do let us know any typo or other kind of error by commenting down below. It will help us to make this internet a good and error-free source of information for the community.