A home loan is a big-ticket loan. It often spans over 2 decades and keeps you indebted until your principal and interest constituents are repaid in full. As it is one of the biggest credit options, you must consider your finances and repayment capacity before applying for it. You must be comfortable with the fact that a fixed portion of the amount will go towards home loan EMI for years. Thus, before you apply for a home loan, ensure to know your EMI. An online home loan EMI calculator can help in such cases.
What is a home loan calculator?
An online home loan EMI calculator allows you to compute your payable EMI and interest component upon provision of the required data. The basic components asked by the home loan EMI calculator are:
∙ Principal amount
∙ Repayment tenure
∙ Home loan interest rate
Upon providing the above 3 details, the calculator instantly provides you with the EMI and interest constituent. In case you are unsatisfied with the result, you may input innumerable combinations of loan amount, tenures, or home loan interest rate to avail an affordable home loan EMI.
Home loan EMI calculator benefits
Now that you are aware how to compute home loan EMIs, check out some of the important benefits of using the calculator.
- Saves you from the complexities of manual calculation: Computing EMIs manually is both tedious and complex. You are bound to make computation errors while computing EMIs that may last up to 20 years. Any error in manual calculation may put you on a bad spot with the lender. What is worse, in such cases you need to go over your manual computations several times to verify if it is computed correctly.
With a home loan EMI calculator, you get accurate results instantly, in just seconds. You can continue inputting distinct combinations of loan amounts, tenures, and interest rates and be rest assured that the computation is 100 percent accurate.
- Helps compare amongst various home loan offers: With various lenders offering different home loan offers, it may be challenging to select the correct one. By using the home loan EMI calculator, you can compute the thorough cost of distinct loans to find the best one.
- Can plan out your finances: As EMI calculators permit you to input distinct home loan interest rate and repayment tenure; you can easily derive your EMI payable towards home loan. Knowing your EMI beforehand can help you better plan your budget in a way that your other crucial monthly expenditures remain unaffected.
- Can manage other loans well: Many repay EMIs for more than one credit option. If you too have various loans, you should know your financials may be impacted if you include another loan to your existing ones. However, with a home loan EMI calculator, you can determine your home loan EMI after computing your other payable loan EMIs.
Before you apply for home loan, you must take into consideration a series of decisions to select the correct offer that matches your financial requirements. While several lenders offer home loans at lower rates, it is crucial for you to compare distinct deals to make an informed choice. This can only be done by using an online home loan eligibility calculator.