Before applying for a home loan, one must do thorough research and planning to avoid financial burden. Candidates can compare lending institutions and choose the most flexible credit facility as per their needs.
This is why one of the most important things to consider when applying for a housing loan is the monthly payments, or EMIs. Before obtaining this line of credit, applicants can calculate their monthly payments using a home loan EMI calculator. Continue reading to know more about this online tool.
How to calculate home loan EMI using an EMI calculator?
Willing borrowers can determine their monthly instalments for a home loan by following these simple steps:
Step 1: Locate the home loan EMI calculator option on the website of your preferred lending institution.
Step 2: Enter the principal home loan amount, rate of interest as charged by the lender and the total repayment tenor in months.
Step 3: Based on the values entered by you, the tool will show the monthly instalments along with the total interest payable at the end of the repayment tenor.
Features and benefits of a home loan EMI calculator
A home loan EMI calculator is an online customised tool offered by several lending institutions that allow users to know the monthly instalments they are liable to pay.
Some of the beneficial aspects of this online tool are as follows:
-
Precise EMI calculations
The accuracy and precision of the results provided by EMI calculators are one of the factors contributing to their popularity. Calculations done manually are prone to mistakes. An EMI calculator reduces the likelihood of inaccurate results and delivers the most accurate EMI breakdown in a matter of seconds. The tool works on following inputs:
- Desired principal amount for the home loan
- Preferred repayment tenor
- Current home loan interest charged by the financial institution
Based on the variables mentioned above, the tool calculates the EMI correctly and promptly.
-
User friendly tool
A home loan EMI calculator is a simple tool, and any user can use it without facing any hassle. Several financial institutions offer this tool on their official portal, and one can use it free of cost. Further, an applicant can adjust the three variables as many times as they want until they get their desired EMI result.
-
Comparing lender
With the help of a home loan EMI calculator, one can choose the best housing loan in India based on their needs. This is because applicants can enter the offers provided by different lenders and settle down for the best option.
-
Maintaining a good CIBIL score
Borrowers can comfortably pay back the loan if they are aware of their monthly obligations in advance. This will guarantee that the CIBIL scores do not decrease, which is what would happen if they do not make their payments on time. Borrowers can comfortably pay back the loan if they are aware of their monthly obligations in advance. This will guarantee that the CIBIL scores do not decrease, which is what would happen if they do not make their payments on time.
Read More: Fixed Deposit Interest Rates Are Rising, Which Attracts More Indian Investors
-
Cost-effective analysis
The home loan EMI calculator’s prompt and accurate computation allow applicants to compare different lending partners and choose the best fit per their requirements. In addition, candidates can make unlimited variable adjustments, enabling them to know different EMI scenarios.
This financial tool works on the following mathematical formula:
EMI = [P x R x (1+R) ^n] / [(1+R) ^ n-1]
Here, P denotes total loan amount, R is rate of interest as charged by a lending partner, and n is total repayment tenor (in months).
Willing borrowers should also check the pre-approved offers extended by the leading financial institutions. These offers expedite the entire home loan application process and help in fast loan disbursals.
To sum it up, make sure to prudently repay the monthly instalments when you opt for a housing loan to cover the costs associated with your property. An online home loan EMI calculator can be used by willing borrowers to calculate their monthly payments. Knowing the EMIs prior to applying for a loan facility enables hassle-free money management.
Read More: Choosing a Document Translation Agency
