Mobile Phone Loan EMI Calculator – Benefits and Steps to Calculate EMI on Mobile Loan
Smartphone prices range from Rs. 5,000 to more than Rs. 1 lakh, which often force buyers to fund their purchase using loans. These are specialised forms of credit known as mobile loans. Before availing this form of financial assistance, one must use a mobile loan EMI calculator.
Navi offers access to such personal loan EMI calculators on the Navi app. Download it on your iOS or Android device to compute your monthly instalments. Before that, go through the following write-up to learn more about mobile loans in general.
What are Mobile Loans?
Mobile loans refer to any credit line, which you can avail to purchase a smartphone. It is an unsecured loan, offering access to substantial funds at attractive tenure and interest rate terms. Individuals looking to avail such a loan must meet the specific eligibility criteria that a lender outlines. Therefore, even if you do not own a credit card, you can use such a loan to purchase the smartphone you desire on EMI.
Since a borrower needs to repay this credit within a limited time, he/she must also use a mobile loan EMI calculator. This online tool can help in financial planning and reduce financial turmoil during the repayment term.
Before applying for such a loan, make sure you understand the workings of a mobile loan EMI calculator. Read the following sections to know more.
Calculate Your Mobile Loan EMI
Loan Amount
Rate of Interest (P.a)
%
Loan Tenure (Months)
Monthly EMI
0
Total Interest
Total Amount
Understanding the Basics of Mobile Loan EMI Calculator
Blindly opting for a mobile EMI loan can lead to substantial difficulties during repayment. You must compute the monthly liabilities from such a loan beforehand to ensure you can afford it. This is why a mobile loan EMI calculator is handy, allowing you to plan your repayment even before loan application.
The tool uses the following formula to calculate your EMIs –
EMI = [P x R x (1+R)^N]/[(1+R)^ (N-1)]
Here, the different parameters are –
- P = Principal amount
- R = Monthly rate of interest
- N = Loan repayment tenure in months.
The EMI calculator is an online tool that shows you your payable towards a mobile loan. Borrowers can adjust the loan amount and tenure on this calculator to arrive at an affordable EMI amount. Proper usage of this online tool can reduce the chances of non-payment of dues significantly.
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Steps to Use Mobile Loan Calculator
Navi offers an easy-to-use mobile loan EMI calculator to customers. Its streamlined interface and lucid layout can help you compute EMIs quickly. Here is the detailed procedure to use the tool:
- Visit Navi’s website and navigate to the personal loan EMI calculator section.
- On the following page, enter your preferred loan principal amount in the relevant field.
- In the tenure field, enter the repayment term you prefer.
- Lastly, enter the interest rate that the lender quotes on your mobile loan.
- After entering all of the above-mentioned details in their specific fields, click on the calculate button.
The calculator should reveal the EMI amount. You can view the total interest cost on the loan as well. If you are unhappy with the outcome, keep changing the parameters until you get to your preferred EMI amount. Keep in mind that Navi’s calculator is free, and you can use the same as many times as you need.
Benefits of Mobile Loan Calculator
When using a mobile loan EMI calculator, you can look forward to the following advantages:
- Accurate results: A calculator operates on a set algorithm and does not make mistakes. Manual calculation of EMIs involves the risk of errors, and thus, it is better to use this tool. An EMI calculator will always display the correct EMI amount, provided you enter the three parameters accurately.
- Saves time: As stated previously, the formula for EMI calculation is tricky. Manually computing results can take time. Moreover, the result might be inaccurate.
- Enhances financial planning: To ensure proper financial planning, using such a calculator is crucial. After determining the EMI payable, you can plan your other monthly expenses around it.
The goal is to avoid default on loan repayment, as doing so can hamper your credit score.
Ways to Avoid EMI Default
If you are availing a mobile loan, following the practices mentioned below can reduce the risk of EMI default:
- Use a calculator to determine EMIs: Using an EMI calculator ensures that borrowers are informed about their liabilities while opting for a personal loan. It aids in proper financial planning.
- Keep FOIR under 40%: The fixed obligation to income ratio or FOIR measures an individual’s fixed monthly liabilities as a percentage of his/her net earnings per month. If it is more than 40%, your disposable income is low, and it can make loan repayments more difficult.
- Borrow only what you will require: Rather than opting for a substantial amount, consider how much you need to buy the device of your choice. Minimising the principal amount is the easiest way to keep EMIs low.
Final Words
Regardless of the kind of loan you want to avail, determining your EMIs beforehand is essential. Now that you know how a mobile loan EMI calculator works, make sure you consider the eligibility parameters as well. Note that your income and credit score are crucial aspects that are taken into account by the lender when deciding whether you qualify for such loans.
Once you compute the EMI amount that is affordable for you, avail a cash loan via the Navi app to finance the purchase of your new smartphone.
FAQs
Ans: Amortization schedule shows the division of principal and interest components in each loan EMI. Generally, the interest amount in EMIs decreases with each month’s payment, while the principal component keeps increasing. Assessing this schedule can help one decide when to foreclose or prepay his/her loan.
Ans: A longer tenure can reduce the monthly instalment amount, but it also increases the overall interest cost. Therefore, borrowers need to consider the benefits and drawbacks of such a decision carefully. Opting for a shorter tenure can lead to substantial interest savings.
Ans: Applying for personal loans online can accelerate the credit processing time significantly. Furthermore, it allows borrowers to take advantage of a more convenient process, which involves no paperwork. Some lenders sanction and disburse the loan amount in just a matter of hours.
Ans: Eligibility criteria can differ from one lender to another. However, the basic requirements include the following:
1. The applicant must be an Indian citizen.
2. Age of the applicant should be at least 18 years.
Additional requirements can include a minimum CIBIL score, but these parameters can vary across lenders.
Ans: Foreclosure means closing your loan account before the tenure runs out. You can do so by clearing the outstanding principal through a lump-sum payment. Doing so helps to reduce the overall interest burden on a loan.
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