All types of loans must be taken after proper planning so that they don’t become a headache for you in the future. Home loans come with a long tenor and if not planned well ahead can adversely impact the financial future of the borrower. Due to the hikes in the Repo Rate, the minimum home loan interest rates have increased and more and more people are looking for better loan interest rate deals.
If you are planning to avail of a loan, the home loan EMI calculator can help you compare offers and plan your home loan journey so that a blueprint for it can be prepared beforehand. A home loan EMI calculator can help you plan your finances and decide whether you can afford a long-term financial commitment like a housing loan or not without disrupting your monthly financial budget.
Home Loan EMI Calculator
Calculate home loan EMI using an online planning tool offered by most lending institutions that helps you calculate an approximate figure for the total monthly instalment payments or EMIs for the home loan. It helps you know the exact principal and interest amount in the form of monthly EMIs to be paid by you for a given loan tenor at a given interest rate. In other words, the it provides information on the interest and principal amount to be paid for a loan separately. This tool helps borrowers plan their budgets before applying for a home loan and understand whether they are eligible for the loan or not.
Benefits of a Home Loan EMI Calculator
- The online calculator is fast and once you enter all the information like the loan amount, tenor, and interest rate, you will receive your monthly EMI and amortization schedule within seconds. So, no need for lengthy and tedious manual calculations anymore. This tool can help a borrower plan his financial journey better.
- The home loan EMI calculator allows you to experiment with different loan amounts. Trying different combinations of loan amounts, loan tenors and rates of interest can help you zero in on the combination that is most suitable for you and that can help you avail of home loans at the best interest rates.
- The calculator helps to compare different offers from various lenders and select the one that best fits your budget. This advanced knowledge helps you to choose the most pocket-friendly home loan option for you so that you do not face any financial hassles in the future.
- Home loan EMI calculators are reliable and produce accurate results every time in comparison to manual calculations. They are easy to use and are available for free on any lender website 24*7.
- The housing loan EMI calculator tool can help to calculate your monthly EMI for a particular loan tenor. You can opt for a higher EMI and a shorter loan tenor or vice versa as per your requirement. The home loan EMI calculator helps you understand how extending the loan tenor will be helpful for you.
- A home loan EMI calculator tool can help you understand how much you can save on EMIs on doing a home loan balance transfer to a new lender offering lower interest rates. This tool thus helps you take the right financial decisions for your future.
- The home loan EMI calculator also helps estimate how prepayments reduce one’s interest outgo. Thus, before applying for a home loan, people should make provisions for prepayment to clear debts faster and reduce the effective interest rate.
How to Use a Home Loan EMI Calculator?
Using an online home loan EMI calculator is quite simple. The calculator helps you calculate your approximate home loan EMI figure and helps you plan your budget accordingly before you apply for the home loan. To know the approximate monthly EMI, enter the given details:
– The loan amount (in rupees)
– Loan term (in months or years)
– Rate of interest (in percentage form)
Once you enter all the above information, the EMI calculator will evaluate your monthly EMI for the loan, total interest payable, and total payment which will include principal as well as interest. Once you know how much you must pay in the form of EMIs, you can plan your budget accordingly. To calculate your EMI, we can use the following formula:
e = [p x r x (1+r) n] / [(1+r) n-1]
Here, ‘e’ denotes the EMI amount that we want to find, p represents the principal loan amount, r is the interest rate charged by the lender, and n represents the loan term or tenor.
If you don’t know how to apply for a home loan, then just visit the local branch office of the lender or log into the website for details. There you will also find the home loan EMI calculator tool that will help you know in advance your home loan EMI and plan your finances before applying for a home loan. Thus, just as documents required for a housing loan are a necessity similarly planning for the home loan EMIs beforehand is also necessary. Following the given suggestions and efficient use of this tool can help you get prepared before applying for a home loan for a smooth and hassle-free home loan journey. Thus, if used wisely, a home loan EMI calculator can assist borrowers in planning their finances well and avoid EMI defaults and reduce overall liabilities.
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