October 1, 2022

Personal Loans can help you get urgent funds from lending institutions. Before applying for a Personal Loan, an assessment is completed by the applicant. The pre-loan assessment is performed to check whether the loan is affordable. For example, consider a loan of INR 5 lakh with a monthly EMI of INR 55,000. If you do not have a steady income, you might be unable to pay off the Personal Loan. In such a scenario, you can search for a Personal Loan with an EMI amount you can afford. To check the affordability of the loan, a pre-assessment is required. Several tools, like a Personal Loan EMI calculator, are needed for pre-loan assessment. Generally, the applicants usually conduct a pre-loan assessment by themselves. Sometimes, non-banking financial companies (NBFCs) can also help customers check whether they can afford a Personal Loan or not. When the NBFC carries out a pre-loan assessment, it is usually referred to as pre-loan approval. In the pre-loan approval process, the loan provider determines the loan eligibility of applicants. Based on an applicant’s credit report, an NBFC can tell the loan amount the applicant is eligible for. Often, people use pre-loan approval and pre-loan assessment interchangeably. 

As the name suggests, pre-loan assessment is a method for checking own eligibility using a personal loan EMI calculator. On the other hand, pre-loan approval is conducted by the NBFC. Loan applicants should know the steps to check their eligibility and chances of getting their loan application approved. If the loan application will not get approved, what’s the point of even applying? With the help of a pre-loan assessment, you can apply for a personal loan that matches your financial situation. Let us now understand the need for a loan calculator in the pre-loan assessment process.

Importance of Personal Loan EMI calculator?

An EMI calculator is usually not a physical calculator. However, you can use a traditional calculator to calculate the EMIs of a Personal Loan. You only have to apply the EMI formula used by the loan providers. With the help of the formula, you can know the EMI amount before the NBFC informs you. The formula for the monthly EMI amount of a Personal Loan is: EMI amount = [(P * I * (1+I)t] / [(1+I)t – 1]. In this formula, ‘P’ is the principal amount, ‘I’ stands for the loan interest rate, and ‘t’ stands for the repayment tenure.

As you can see, little mathematics is involved in calculating the EMI amount. Still, there are chances of error while calculating, so it is wiser to use an online loan calculator. For example, an EMI calculator is embedded on the Clix Capital website. You can enter your loan requirements and monthly income to access EMI plans. The online EMI calculator will show the EMI plan based on your input. You can look at the EMI plans and check for affordability. If you think a particular EMI plan is perfect, you can go ahead with the personal loan application. However, you should know that an EMI installment should always be less than 50% of the monthly income. An online Personal Loan EMI calculator can easily help you plan for a Personal Loan in a few simple steps.

Pros of an Online Personal Loan EMI calculator

Here are the benefits of using a loan calculator for pre-loan assessment:

  1. With an online EMI calculator, there is no need to go through the hassle of doing maths.
  2. An EMI calculator helps check loan affordability. You can choose the best Personal Loan plan yourself with an EMI calculator.
  3. An EMI calculator boosts the culture of self-service for loan applicants. You can choose the best EMI plan even without a loan agent.
  4. With an EMI calculator, you can align your monthly income with the loan EMI. If the loan cannot be paid off, it can be determined beforehand with an EMI calculator/planner.


A loan calculator can help you know the exact EMI amount for the chosen Personal Loan. Besides the EMI of the loan, interest rates are also considered before filing the loan application. You can select Capital Clix for pocket-friendly EMIs and interest rates on Personal Loans! 

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