Whenever an individual needs urgent money to overcome financial needs/emergencies, a personal loan comes to the mind first. When we talk about personal loan lenders, there are several options from which an individual can choose. HSBC Bank is also one of the popular ones among customers. But here, we would like to discuss a tool known as HSBC Bank Personal Loan EMI Calculator with which you can perform various things including an estimation of the EMI amount, estimation of the savings when going for a balance transfer facility or prepayment of the loan, or choosing the right tenure.
Here, we will tell you about the role of the HSBC Bank Personal loan EMI Calculator when you are choosing the prepayment facility. You must be wondering what this facility is? Well, prepayment allows lenders to make part or full payment of their outstanding loan amount before the tenure. If you will pay only a part, it will be known as the part payment. One of the most beneficial things about prepayment is that you can ensure maximum savings on a loan. In this article, we will tell you how much money you can save by choosing a prepayment facility. So, keep reading to know more! How Much Can You Save with the Prepayment Facility? Calculate it with HSBC Personal Loan EMI Calculator! One of the important things that you need to know when choosing a prepayment facility is that lenders charge a fixed charge on it that will depend on your outstanding principal balance. Also, your prepayment doesn’t get affected by the HSBC Bank Personal Loan Interest Rate. Let’s understand how much you can save with an example. Suppose an individual has a 5-year personal loan of INR 6 lakh at an HSBC personal loan interest rate of 12.50% per annum. With these details in our hands, we can know that he must be paying an EMI of INR 13,499 while the interest outgo will be INR 2,09,926. Now, let’s say he wants to make a part payment of INR 1,50,000 after 2 years into his loan. At this time, the principal outstanding balance is INR 4,03,506. After making the part prepayment of INR 1.5 lakh, the new balance would be INR 2,53,506. Now, he can choose from two options - Either he can repay this balance in the fixed tenure as decided earlier with a lower EMI amount or he can keep paying the same EMI with which he could pay the balance earlier than the pre-decided tenure. Let’s see both options. Option 1: If he chooses to pay INR 2,53,506 in the remaining 36 months, the new EMI would be INR 8,481, which is around INR 5,000 lower than the previous EMI amount. The total interest outgo will also be lower than before because of the reduction in the balance. There is no role of HSBC personal loan interest rate in this process. Option 2: If he chooses to keep paying the same EMI amount of INR 13,499, he would be able to clear off the outstanding balance within 21 months, 15 months earlier than the pre-decided tenure. Remember, the calculations mentioned above can be done by using the HSBC Personal Loan EMI Calculator. To use this tool, you only need a few details such as the required loan amount, interest rate and required tenure. The tool will give you instant results by showing the EMI amount, interest outgo, and total amount payable.
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Anika Sharma
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