A Home Loan is a long term financial responsibility that involves a substantial debt availed to finance the purchase of a home. Its repayment entails payment of Equated Monthly Instalments (EMIs) for the entire tenure. There are online tools known as Home Loan EMI calculator or EMI checker tools that help to understand the monthly outgo towards the repayment of the Home Loan before actually applying for it. When a prospective applicant looks for various loan schemes, he/she can use this tool to determine the EMI for different loan amounts, rates of interest and tenures without having to perform any manual calculations.
EMI outgo for the Home Loan availed
The first step to avail a Home Loan is setting a budget and ascertaining the loan amount to be borrowed. Here, borrowers have a range in mind within which they hunt for the most suitable loan scheme from different banks, Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs). As different lending institutions will have varying rates of interest, the EMI will also vary. So, the borrower can use an EMI calculator to determine the tentative EMI amount for the loan options available. They can also use the calculator to estimate the EMI with varying repayment tenures and decide accordingly.
The user will simply have to provide the key details of the Home Loan such as the amount to be borrowed, rate of interest (in case the calculator does not already have it fed into the system) and the tenure. When the details are given, the calculator displays the EMI to be paid as per the details mentioned.
Hence, by using the EMI calculator, a Home Loan seeker can find the most affordable loan for himself/herself and plan for its repayment in advance.
The resource given below will provide the other important details related to the features, uses and benefits of a Home Loan EMI calculator:
Importance of EMI calculator for Getting a Home Loan
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.