# Estimate your Loan EMI Timely: Avoid Interest Penalties

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In the past few years, advances like loans for doctors have accounted for a substantial portion of total credits disbursed in the lending sector.

As per Business Standard in 2019, there are about 11.57 lakh medical practitioners in India, who have unique financial requirements that can be met through such advances.

Further, this growth of such loans has been bolstered by their easy availability from various financial institutions across India.

Nonetheless, the ease of availability of these advances could also have repercussions like a higher rate of defaults and delayed EMI payments, if borrowers do not gauge their repayment capability before applying.

To avoid such situations, individuals can utilise tools like a doctor loan calculator to estimate their EMIs before availing the advance, and subsequently avoid risks of defaults and penalties.

## Why should one calculate their EMIs before availing a loan?

Calculating one’s EMI before applying for a loan for doctors can allow individuals to ensure that they can comfortably pay the amount each month without imposing a burden on their finances.

Since late payment of physician loan EMIs can attract penalties, and even hamper the borrower’s credit score, it is crucial for them to ensure they avail an advance they can repay without difficulty.

In this respect, online EMI calculators can help borrowers calculate their monthly instalments without the hassle and avoid incurring the burdens of interest penalties and the likes.

Following is a look at how such doctor loan calculators work, and the advantages of using such tools before applying for a loan.

## How to doctor loan EMI calculators work?

These online tools, made available by leading financial institutions can help to calculate the total EMI amount payable against their advances and thus gauge if they are eligible for a doctor loan of the quantum that they want to avail. Furthermore, they separately display the total interest amount that one needs to pay against their loan.

The calculation of doctor loan EMI is based on a pre-set mathematical calculation given by –

E = P x R x (1+R) ^N / [(1+R) ^N-1]

Where,

• E is the EMI payable.
• P is the principal amount borrowed.
• R is the doctor loan rate of interest.
• N is the loan repayment tenor, given in months.

While one can manually calculate their EMIs utilising this equation, it can be a cumbersome task and leave room for errors.

One the other hand, using a loan for doctors EMI calculator is simple, hassle-free and it proffers users accurate results.

Potential borrowers simply need to enter parameters like their doctor loan interest rates, amount, and tenor in their respective fields on the calculator to know their EMI amount.

These are the three principal factors that affect the EMI payable against doctor loans.

### Why is it beneficial to use a loan EMI calculator?

There are several benefits of using these doctor loan calculators, these are –

• Fast calculations

Using these tools allow borrowers to analyse their EMI within seconds. This enables one to save a lot of time and hassle for these complicated calculations.

• Multiple usages

These calculators are free of cost and can be utilised multiple times by adjusting the principal amount and loan tenor, to know the EMI amount that is most suitable for the borrower’s finances.

• Eliminates chances of errors

Since calculating EMI amount enables long-term financial planning, even a small miscalculation can have impacts.

However, with these calculators, you can eliminate the possibility of any errors, and make financial planning easier.

• Helps borrowers to choose a suitable amount

Knowing the EMI payable helps borrowers choose a principal amount that is easily repayable. This limits the chances of the loan from becoming a burden on one’s finances in the long run and subsequently avoid the chances of late EMI payments and defaults.

Choosing the right amount is one of the items in the checklist that helps individuals apply for a doctor loan.

• Displays amortisation schedule

Online calculators also offer the benefit of displaying the amortisation schedule to individuals, which can make it easier for them to plan their repayment accordingly.

A doctor loan calculator is, thus, an important tool that facilitates ease of financial planning for physicians. One can easily avail these calculators from the official website of financial institutions like Bajaj Finserv.

It is, thus, crucial for borrowers to ensure that they use these tools to make timely calculations of their EMI amount. It will help them avoid the chances of penalties over their loan interest amount.