Housing credits are among the most sought-after loans among borrowers wanting to purchase a home. Moreover, with the repo rate kept constant by the RBI, several financial institutions have significantly reduced their lending rates and made housing loans more affordable for prospective borrowers.
Since availing of a home loan is a long-term financial liability, it is essential to choose the correct loan amount suited to the financial affordability. In this regard, individuals can use a home loan calculator to determine the EMIs beforehand and plan their finances effectively.
What is a home loan EMI calculator?
As the name suggests, a home loan EMI calculator is an online financial tool that allows borrowers to determine the exact EMI to pay against the obtained home loans. This home loan calculator considers three determinants: interest rate, loan amount, and tenor, and evaluates the monthly instalments.
While individuals can calculate the EMIs without using this calculator, it may provide erroneous results. However, using this handy tool will help borrowers understand how much they can afford to borrow, whether one should go for short-term or long-term credit and help in planning out finances to guarantee timely repayments.
Benefits of using an online home loan EMI calculator
When individuals plan to apply for a home loan in Kolkata or any other city, they can take the assistance of this intuitive financial tool before and calculate the overall cost and plan repayment efficiently. Besides, this calculator displays the amortisation table of the overall loan amount involving interest and principal components. This detailed description provides a clear idea about repayments and helps decide balance transfer and loan prepayment.
Let’s check out some of the reasons for using this online calculator over evaluating EMIs manually, especially when thinking to apply for home loan. Some of the advantages of this calculator are discussed below-
Helps in loan management
Prospective borrowers can use a home loan calculator to draft a repayment strategy for paying off their debts. These simple and user-friendly tools provide a detailed look regarding the interest outflow, monthly instalment and the overall payable amount in just a few steps. As already stated, since home loans are long term financial commitments, comprehensive knowledge of such factors can help borrowers manage their finances efficiently in the coming years.
Helps in comparing loan offers
Individuals can use this home loan calculator to compare interest rates offered by various lending institutions. When the result of the overall cost of a loan and the payable EMIs are displayed, one can quickly figure out which financier is offering the best loan terms that meet their financial requisites.
Provides multiple usages
One of the best parts of this handy tool is its multiple usage facility. Individuals can adjust the tenor multiple times to find suitable results. Moreover, this application is free and easy to use, thereby increasing its advantages.
Quick and accurate results
While borrowers can calculate EMIs manually, to avoid incorrect calculation, one can use this financial instrument and complete the evaluation within a few seconds and get error-free results.
How to use this calculator?
Now that borrowers know the importance of calculating EMIs before applying for a home loan, go through the guide of how to use this tool to reach the most affordable EMI:
1- Visit a financial lender’s website and opt for the EMI calculator
2- Now, choose the desired loan amount
3- Input interest rate and tenor
4- After inputting this information, this online device will show the result within seconds
By knowing the EMIs beforehand, individuals can plan prepayments and calculate the amount they can claim for the home loan tax benefit and save substantially.
Besides providing online calculators, leading financiers also extend pre-approved offers on a wide range of financing options, such as loans against property, home loans etc. These offers reduce the hassle of extensive documentation during loan procedure and simplify and accelerate it. To check your pre-approved offer online, provide your name and contact details.
Thus, this online home loan calculator will save borrowers from repayment worries and provide insight into the payable EMIs within the specific tenor. Use this device and make the most informed financial decision.