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Fintech has revolutionised personal finance in this evolving landscape of financial technology. These tools give more individuals access to financial services and the ability to understand their finances. Among the various innovations led by fintech, EMI calculators and tax calculators are tools that have simplified financial processes for individuals. Dive deeper into this informative piece to understand how EMI and tax calculators are at the forefront of the fintech revolution.
An Overview of EMI Calculators
EMI calculators are the most significant contribution to personal finance by fintech. An EMI calculator is a digital tool that helps users figure out how much they would need to pay each month with the loans they take out. Knowing the EMI amount is vital for preparing for this monthly payment, regardless of whether it is a home loan, a car loan, or a personal loan. EMI calculators also help to calculate the total cost of the interest paid on the loan and the entire sum.
Benefits of EMI Calculators
Here are a few ways in which EMI calculators can help individuals deal with their borrowings:
1. Simplifying Loan Management
By entering the loan amount, interest, and tenure, users can instantly calculate their monthly loan repayment outgo. It permits people to plan their finances better and comfortably repay the EMI for the loan they are considering.
2. Facilitating Informed Decision-Making
By using EMI calculators, users can make an informed decision about whether a particular loan offer is the best for them or not. They can adjust the loan tenure, amount, and EMI to pick a suitable offer with a favourable repayment policy.
3. Understanding Interest Rates
Another advantage of EMI calculators is that they help give users an understanding of how rates of interest work. They can be very clear about how the rate of interest is calculated and how it influences the final cost of repaying the borrowed funds.
An Overview of Tax Calculators
Another area where fintech has made a great impact is tax planning. A tax calculator has become an indispensable tool for those who want to minimise their tax liabilities and always stay in compliance with tax laws.
Benefits of Tax Calculators
Here’s how tax calculators can help you out:
1. Streamlining Tax Calculations
A tax calculator streamlines the complex process of tax calculation, performing the computation automatically based on the user’s income, deductions, and the applicable tax slabs. This way, the users are able to get a quick and accurate estimate of their tax liability without the risk of making mistakes. At the same time, they can avoid spending a lot of time on tax calculations and concentrate on other aspects of their financial planning instead.
2. Optimising Tax Savings
With tax calculators, users have an opportunity to efficiently use all means of saving on taxes. They can enter different amounts of investments to see how it will affect their taxes, calculate what a difference claiming a deduction under different sections will make, etc.
3. Ensuring Compliance
Another way tax calculators can benefit the user is to ensure compliance. Sometimes, people may not have a clear understanding of their tax rates and how they are going to be calculated. Hence, relying on calculators helps to avoid overpaying. Similarly, timely estimates of tax liabilities ensure that the user does not pay lower taxes than necessary, which helps to avoid any associated penalties.
Conclusion
At present, different tools, such as EMI and tax calculators, play an essential role in money management. As fintech tools continue developing, their impact on the management of personal finance is likely to increase, making them essential for everyone who wants to control their finances.
