Financial Planning Made Easy with Home Loan EMI Calculator
The Indian real estate sector is expected to penetrate the $1 trillion market size by 2030. The overall residential housing sector has been catapulted due to the availability of easy housing finance.
Since property purchase is on the rise, lenders today provide specialised tools to compute monthly liabilities from a home loan. The home loan EMI calculator is one of the most trusted tools to calculate the amount of EMI before opting for the credit, thereby ensuring proper financial planning.
What is a home loan EMI calculator?
Since a home loan involves a colossal amount of credit sanctioned by a lender, the borrower pays a fixed amount of EMIs (Equated Monthly Instalments). With the home loan EMI calculator assistance, borrowers can find out the exact amount of EMIs they are liable to pay each month towards their home loan repayment. It helps individuals make an informed decision regarding the precise EMI amount and assess their current financial situation.
Several non-financial institutions and lenders offer home loans at significantly low-interest rates while also providing additional features like a top-up loan, flexible repayment options, and customised insurance schemes.
Know the benefits of using a home loan EMI calculator
As a self-help planning tool, a home loan EMI calculator offers numerous benefits to customers looking to secure a home loan without making a hole in the savings.
- Easy calculation
Customers using a home loan EMI calculator save time and energy put into such manual mathematical calculation. By simply entering information in the following fields, EMI can be computed — principal amount, interest rate offered by a lender and loan tenor.
2. Accurate results
Manual calculations may tend to give incorrect figures. An online home loan EMI calculator provides results with 100% accuracy.
3. Finance planning
Since individuals get a clear EMI figure, it helps them plan their finances according to their financial situation. Specialised calculators also enable borrowers to calculate home loan eligibility.
4. Easy comparing
New customers can use a home loan EMI calculator to compare the interest rates offered by different lenders. Doing so allows borrowers to shortlist the best option from the available lenders.
Read Also: Want to Reduce Your Housing Loan EMIs? Know How You Can Do So!
5. Better loan management
Customers may have excess funds at times while servicing home loan EMI. The extra fund can be used to make prepayments. Using a home loan EMI calculator helps a customer in prepaying their home loan.
How to calculate EMI using a home loan EMI calculator?
This tool functions on a simple formula: EMI= [P x R x (1+R) ^N]/ [(1+R) ^N-1], where ‘P’ signifies the loan amount or the principal; ‘R’ is the interest rate per month, and ’N’ the number of monthly instalments.
To know the exact amount of EMI that one needs to pay towards home loan repayment, customers will have to enter his/her principal figure accurately, rate of interest charged by one’s chosen lender, and home loan tenor in such a home loan EMI calculator. Within a fraction of a second, the calculator will display the exact EMI amount.
Apart from such tools, reputed housing finance companies extend pre-approved offers to streamline the home loan process. Such offers are also extended on several financial products like home loans, loans against property and more. You can check your pre-approved offer by submitting full name and contact information.
While calculating the EMI towards the home loan amount, new customers must also check their home loan eligibility to determine the home loan options.
Additionally Read: WHY TO USE AN ONLINE HOME LOAN EMI CALCULATOR