A Home Loan calculator provides the borrower with a clear knowledge of the exact EMIs that he/she need to pay towards the loan to make a well-informed decision.
With a Home Loan EMI calculator, you can know what the ratio of the principal amount to the interest due is along with an estimate based on the loan duration and interest rates.
If you still want to know if you are eligible for a Housing Finance, you can use a Home Loan eligibility calculator before using the Home Loan EMI calculator.
A Home Loan eligibility calculator takes into consideration factors such as:
What is a Home Loan eligibility calculator?
A Home Loan eligibility calculator assists you to know your eligibility for a Housing Loan that you wish to apply for. You can plan the amount that you want to apply for accordingly.
What’s more, a Home Loan Eligibility Calculator also informs about how much can an applicant can borrow based on their eligibility.
Home Loan EMI Calculator Benefits
Other than letting you know the exact value of EMIs that you need to pay on your Housing Loan, a Home Loan EMI calculator also provides other benefits:
The major benefit of using a Home Loan EMI calculator is that it helps in concluding at the EMI amount. When you enter basic details such as loan amount, Home Loan interest rates, and the loan tenure, you will get to know an elaborate output which includes the payable EMI amount.
Using the calculator also assists in understanding many charges such as processing fee, total interest paid values. Since financial institutes and banks present them as a part of the principal amount, knowing the total value aids in deciding the loan terms.
When you have an idea about the EMIs that you will pay, it also helps in selecting the loan tenure as well. Since a shorter term means a higher EMI, you can also try various tenures combinations and work out suitable terms that meet your monthly budget and income.
Home Loan EMI Calculation Process
You can calculate the EMI of your Home Loan using the three major factors such as:
When you enter these details into the tool, you get an exact EMI amount which you will need to pay for your Home Loan. With an online Home Loan EMI calculator, there is no need to calculate your loan EMI manually, just visit the website of your prospective creditor.
The Bottom Line
Now that you know what a Home Loan EMI calculator is, what benefits it provides, how it works, calculation process and much more, you can now calculate the exact EMIs that you will pay on the loan amount that you wish to apply for.
Use the Home Loan calculator to your advantage to adjust your monthly cash flows for the loan that you will apply for! Good luck!
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.