Purchasing a dream home is a difficult task. It entails not only picking a proper house in a safe neighbourhood with proper infrastructure but also requires detailed financial planning. Thus, one of the most important considerations when applying for a house loan is the accuracy of the loan amount. Knowing exactly how much you require allows you to arrange your EMI and money accordingly. When you’ve decided on the home loan amount, you’ll need to figure out how much home loan interest rate is best for you.
EMIs, or Equated Monthly Instalments, are a method of repaying debts that is both systematic and convenient. The amount owed (the amount borrowed plus the amount owed in interest) is spread out over the loan’s term, with consistent monthly payments. Each such monthly amount repayable is called an EMI.
Taking out a home loan and paying the EMIs, on the other hand, necessitates substantial financial planning. You must manage your resources in such a way that you can pay the EMIs without putting your budget under financial strain. This means that you must pay your home loan EMIs on time, without missing or delaying them, while keeping your household budget in check.
What Is the Home Loan EMI Calculator?
A Home Loan EMI calculator will help you figure out how much you’ll have to pay in EMIs each month to repay your loan. It assists you in budgeting by helping you keep your EMI amount in mind. This way, you’ll be able to plan ahead and handle your other financial obligations, such as other loans and investments.
Here is how you can calculate your home loan EMIs using the EMI calculator:
- Enter the amount of the principal house loan you want to take out, as well as the loan’s duration.
- This calculator will calculate your EMI amount in real-time, giving you a good sense of your monthly outflow that will go towards repaying your house loan.
Who Is Eligible to Apply for a House Loan?
- Any individual with a stable source of income (working in the government and private sector)
- Many banks and lending institutions offer tailor-made loans to specific professionals, such as doctors, engineers, dentists, architects, chartered accountants, cost accountants, company secretaries, management consultants, etc.
- Any self-employed businessperson who can show sustainable returns on investments
- Individuals belonging to the above categories must be between 21 and 65 years of age. This age limit can vary based on the lender.
Benefits of EMI Calculator
The home loan EMI calculator allows you to change the loan amount and term by entering various permutations and combinations of the principal amount and term to arrive at a manageable EMI amount. Knowing your EMI obligations ahead of time will allow you to organise your finances and manage your budget so that you can cover the EMI without jeopardising other essential expenses.
Here are some of the benefits of using the EMI calculator for a home loan:
Gives you an idea of the EMI amount in advance:
Even before you apply for a loan, you can get an estimate of your EMIs. This enables you to correctly manage your monthly budget to avoid future financial and budget issues.
Knowing the right tenure:
We all know that the EMI for any loan is directly proportional to the interest rate and the length of the loan. Using a home loan EMI calculator allows you to calculate your projected EMI so that you can adjust your tenor duration to make your EMIs affordable.
Helps you analyse your loan’s affordability:
The monthly expenditure clause comes right after the affordability criterion. Sticking to a strict budget to meet your equivalent monthly instalments is desirable and suggested if you have a home loan to repay. You must pay your EMIs on time to prevent an overdue or increased interest rate. Using an EMI calculator helps you analyse the affordability of your loan.
The EMI calculator for a house loan is simple to use. All you have to do now is enter the loan amount, interest rate, and repayment time. You’ll obtain your anticipated EMI, total payable interest, and total cost of borrowing after pressing the submit icon. There are no difficult computations, and the accurate answer is obtained in just a few clicks.
Aids in the selection of the right lender:
You may evaluate several lenders and choose the best one for your budget and needs by using an EMI calculator. For example, if you have three lenders in mind, you may calculate the EMI amount for each of them using an EMI calculator and then make your final decision after calculating the entire loan cost.