Home loans are among the most popular methods of adding to one’s funding pool when buying a house. Since home loans involve large sums of money, prospective borrowers must keep in mind their repayment capability when applying for a loan. Banks and lenders offer several free online financial tools on their websites to help people understand the various home loan offerings and thus, make informed choices.
What Is an EMI?
The Equated Monthly Instalment (EMI) is the fixed amount of money that a home loan borrower must pay the lender each month on a specific date as repayment for the loan. It is a systematic way to pay off your loan.
What Is a Home Loan EMI Calculator?
A home loan EMI calculator is an online financial tool that accurately calculates the EMIs (principal amount + interest) payable each month towards one’s home loan.
Advantages of Using a Home Loan EMI Calculator
The EMI of your home loan determines its affordability. It is the amount you need to pay for the entire duration of your loan. Hence, choosing a lender who provides home loans at a reasonable rate of interest is a crucial factor. This ensures that the overall cost of your loan is kept under check. It also lowers your EMI and helps manage your expenses well.
Some of the advantages of using a home loan EMI calculator are mentioned below:
It Helps Manage Repayments
The EMI calculator tells you how much you can afford to borrow based on the interest rate offered and the selected loan tenor. It will then show you the applicable EMI that best suits your financial situation. This way, you can measure your fixed expenses, prioritise your responsibilities, and assess the areas where you can curtail. Thus, you can manage your EMIs better and make timely home loan repayments.
It Helps Decide the Ideal Loan Amount
Calculating the EMI in advance lets you choose the ideal loan amount you can borrow. The home loan calculator allows you to adjust the loan tenor and home loan interest rate values, along with the principal amount to arrive at an EMI that fits your budget. Based on this calculation, you can opt for the appropriate home loan amount and plan for it accordingly.
It Helps Plan Prepayments
If you have some funds at your disposal, either through savings or investments during the loan, you can choose the home loan prepayment option. This reduces your interest outgo and lets you pay off your home loans earlier than the stipulated loan tenor. The EMI calculator gives you the proper calculations to plan for it. Knowing the figures beforehand lets you time your investments or save up each month to make the home loan prepayments with ease.
It Gives Accurate results
Home loan planning involves plenty of number crunching and manual calculations are liable to errors. A home loan EMI calculator addresses this issue by giving accurate results every single time.
It Also Gives Quick Calculations
Complex calculations associated with home loans are not only prone to mistakes but are tedious and lengthy, as well. A home loan calculator takes care of this problem. It displays the results automatically, within just a few seconds.
The Results Delivered Are Easy to Compare
Different lenders offer different home loan interest rates and even the slightest difference in the home loan rate of interest can significantly impact the EMIs. Therefore, you can easily compare the interest rates offered by various lenders on their home loans by using a home loan calculator.
It’s Easy to Use
A home loan EMI calculator is extremely user-friendly. It gives you the complete picture of your home loan based on just three parameters – principal loan amount, loan tenor, and interest rate.
How to Calculate Your Home Loan with a Home Loan EMI Calculator
Visit the website of your lender and follow the instructions on how to calculate your EMI. Enter the three variables – your principal loan amount, home loan interest rate, and loan tenor – in their corresponding places on the home loan EMI calculator. Alternatively, you can adjust the three values using sliders, depending on the type of calculator available on your lender’s website. The calculator will display the EMI once you set the three values. You can also customise your home loan by adjusting each variable until you arrive at the EMI and principal amount of your preference.
A home loan EMI calculator provides an insight into the EMI payable on your specific loan type. It is an easy-to-use and efficient financial tool that gives you a realistic picture of your home loan. Its numerous advantages make it an indispensable part of the home loan process.
Get a tailor-made home loan with the help of useful tools, such as the home loan EMI calculator and home loan eligibility calculator. In addition to home loan calculators, prime lenders, such as Bajaj Housing Finance, also have a wide range of home loan offerings, such as loan against property, online home loan, home loan balance transfer, and many other finance products. You can easily apply for a home loan with minimal documentation requirements and quick processing time at low-interest rates and comfortable repayment terms.
Bajaj Finserv is offering Housing Loan in India at low interest rate. Take advantage of this offer by get home loan. You can also avail this home loan by applying online. Bajaj Finserv is one of the best NBFC companies in India.