The demand for property has grown immensely in the past few years, thanks to the desire for home ownership among millennials. They are willing to invest in properties as a residence or use it as an asset to generate income. Regardless of the purpose,
- The nationwide real estate market saw a growth of 84% in Q4 of 2020.
- Among which property priced at over Rs.50 lakh constitutes 57% of all sales.
Availing a higher amount is made possible due to a number of reforms in this market like RERA, GST, rebate on stamp duty, etc. However, like any other debt, it can hurt borrowers’ credit profile if not repaid within the tenor.
Thus, it is necessary to assess the home loan EMI calculator before applying for this credit. It will ascertain a hassle-free repayment and allow individuals to manage their finances better than ever.
How to Check EMI using a Home Loan EMI calculator?
Following is the stepwise procedure to check your EMI by Home Loan EMI Calculator.
Step 1: Open an online portal that offers such calculators for use. Preferably, one should utilise the EMI calculator from his/her chosen lender.
Step 2: Enter the loan amount, tenor and interest rate proposed to you.
Step 3: On entering the information, the EMI, total interest payable and a net cost of borrowing appear on the screen.
Step 4: You can adjust the loan amount and tenor via the sliders to arrive at a suitable EMI.
Hence, using this tool, individuals can adjust their home loan repayment structure with ease.
Benefits of Using a Home Loan EMI Calculator
Some of the key benefits of calculating EMIs before taking a home loan are listed below.
Individuals can check their home loan EMI promptly using this calculator. Since it is a free-to-use tool, individuals can enter the loan components repeatedly, without any restrictions. Using this tool can help one determine the best home loan repayment options and plan his/her finances effectively.
This tool uses the EMI formula mentioned below to calculate your Home Loan EMI.
[EMI = P × r × (1 + r)^n/((1 + r)^n – 1)]
P= Principal, r= monthly interest rate, n= number of EMIs
This formula is curated in the tool so that individuals do not have to derive the home loan EMI manually, which is a time-consuming process.
Similarly, lenders also offer a home loan eligibility calculator that helps in deriving the same promptly.
Scope for Adjustment
This EMI calculator is expressed through a bar or slider. Hence, borrowers can adjust their loan amount and tenor to reach a solution that facilitates easy repayment. It also allows them to reduce home loan tenure and EMI largely, with meaningful changes.
For instance, if you apply for a home loan of Rs.60 lakh at an interest rate of 7% for 16 years. In this case, the EMI would be Rs.52,032 and interest payable is Rs.39,90,321.
However, if you reduce the tenor to 12 years, the new EMI would be Rs.61,703 and interest payable would be Rs.28,85,207. Thus, you can save Rs.11,05,114 by reducing the repayment tenor by 4 years.
However, in that case, you also need to assess his financial ability to pay a higher EMI amount without compromising on other expenses.
While using a manual process increases the chance of error in calculation, this tool reduces such chances. Hence, individuals can use this tool on the go and get an accurate result every time they enter the details and the online tool will provide error-free results.
Helps in Comparing Rates
Choose an HFC who extends high value home loans to eligible candidates at a competitive home loan interest rate.
The financial institution must also provide pre-approved offers that simplify and expedite the loan availing process. Such offers are also available on a range of financial products like loans against property, home loans and many more. You can check your pre-approved offer by entering your name and contact number.
Therefore, individuals can manage any short or significant liabilities with ease while using this calculator. The pie-chart representation of the loan components allows them to settle for a home loan EMI that suits the best of their financial capability.
These were some benefits of using Home Loan EMI Calculator online to calculate your EMIs easily without any error in the calculator.
Thus, these were some above steps through which you can follow and calculate your home loan EMIs through Home Loan EMI Calculator online. Hope, the piece of information helped you out and now you can easily calculate your home loan EMI online by using Home Loan EMI Calculator online.
Also Read: Home Loan Balance Transfer