Calculating the Impact of Change in Interest Rate
At first look, you might feel that we are rubbing it in - an increase in EMI is a pain any which way you cut it. The last thing you need is another reminder as to how much more you are paying towards your loan repayment.
Nevertheless, we welcome you to our calculator that assesses the impact of change in interest rates. And although it might remind you of the, well, impact of rate changes, we promise you that this calculator can be a little more helpful than that.
Right off the bat, this calculator is a tool that you can use to calculate probable changes in rates, how these changes would affect your EMIs and then plan your finances accordingly going forward. There is more, later.
While calculating the impact of an interest rate change, our calculator gives you the freedom to choose - between having the same EMI as before or the same tenure as before. If you want the same EMI going forward, your tenure would change and vice versa.
The calculator's first screen asks you to fill in relevant details, such as your loan amount, tenure at the time of taking the loan, interest rate at the time of taking the loan. On the second screen, it asks you the date when the new interest rate came into effect plus the new interest rate itself. It is over here that you need to choose whether you want to keep your EMI same as before or your tenure same as before.
Clicking the Next button will give you the result, in terms of change in EMI or tenure depending on your selection. In either case, you get the old and new figures, plus the difference between the two.
Moreover, on the result screen, you can actually change your preference (EMI to tenure or vice versa), or any of the other details such as loan amount, tenure, old and new interest rates, and the dates. In short, you have full control over your choices.
As we said earlier, this is not just an attempt to remind you of increased commitments. We give you this tool so that you can use it to plan your future finances better prepared. If, as a result of using this tool, you are able to do that, we will count our endeavor as worthwhile.
Note: All calculators and comparators are made based on certain assumptions which may not be true in your case. You should consult your personal financial advisor before taking any decision. Apnaloan disclaims any responsibility for any decision taken based on these calculators and comparators.