Home loans are typically high-value credits with long tenors extending up to 20 years or more. Therefore, it is fair to say that availing a credit to purchase a house is equivalent to taking up a significant financial burden. Careful planning is imperative to manage it over the tenor without any hiccup.
In this regard, a home loan EMI calculator online can help prospective home buyers with their planning. Also, using it, borrowers can find their ideal loan offer sans any delay.
How to use a home loan EMI calculator to advantage?
Here are some ways an online calculator like this can aid prospective borrowers with their financial planning –
Quick and accurate results
An online calculator like this is popular for its ability to deliver swift results. Manual calculations are most of the times complicated and require a long time to complete. However, with a calculator like this, one can get prompt results.
Alongside being prompt, online calculators are also well-known for delivering accurate home loan EMI figures. The in-built algorithm includes the industry-standard formula of EMI = [P x R x (1+R) ^N] / [(1+R) ^N -1] that ensures accurate results. Here, P is the principal loan amount, R is the rate of interest, and N is the number of months.
Customise the loan offer
A notable advantage of this home loan EMI calculator is that it allows users to customise their home loan offers. It means individuals can alter available fields on these calculators to change and enter different principal sums, interest rates, and tenors to find a loan offer that will suit their repayment capacity. Moreover, they can do it repeatedly till they can find an ideal solution.
Compare between loan offers
Online calculators like these also offer a chance to compare different loan offers. Taking the assistance of these devices, prospective home loan borrowers can compare home loan interest rate, tenor, EMIs, etc., featured by different financial institutions. Following that, they can make a decision that suits their requirements.
Needs no charges
Furthermore, home loan calculators like these are free to use. Borrowers can use them as many times as they want, without paying any fee.
Learn more about a loan offer
Online EMI calculators also provide access to additional information about a housing loan scheme, such as the amortisation schedule. This schedule or sheet offers a detailed overview of the loan repayment. It will include a breakdown of EMI payments and how it progresses over the tenor.
The availability of this sheet helps borrowers learn about their home loan repayment in detail. They learn about the interest and principal part of every instalment from this sheet. For instance, if you are paying an EMI of Rs.20,000 in the starting months, your monthly instalment will mainly include interest payments, which will reduce over time.
Alongside knowing the EMIs, borrowers should also learn 3 simple steps for effective home loan management to increase their benefits.
Home loan EMI calculator online has a significant role in housing loan repayment plan. Therefore, besides knowing its advantages, one should also learn how to use it properly to ascertain their repayment capability without any delay and mistakes.
How to use a home loan EMI calculator?
1 – Go to the website of a trusted financial institution
2 – Navigate to the home loan EMI calculator option
3 – Enter details like – loan amount, tenure, and rate of interest
4 – Get the required results instantly
It should be noted that some EMI calculators may require mentioning the type of borrower one is. For instance, a new borrower, an existing borrower, or a senior citizen.
Alongside a free-to-use instalment calculator, leading financial institutions also offer pre-approved offers to reduce the hassle of a loan application. Available to only existing customers, these offers are applicable on secured and unsecured financial products. Borrowers can now check their pre-approved offers by providing their contact information.
With assistance from a home loan EMI calculator online, prospective borrowers can frame a robust budget to ease their loan repayments. Also, calculating repayment beforehand is one of the steps to follow to get a home loan easily. It’s because you can accurately measure the loan amount that’s conveniently repayable per your capacity, which helps in faster approval.