A Home Loan EMI can prove to be the biggest monthly expense of your budget. EMIs usually comprise 35% to 40% of in-hand salaries of people. With such large EMIs, only a small amount is left to invest further in any other financial requirements.
To purchase a dream house and to keep the EMIs affordable, individuals prefer to opt long tenor Housing Loan. Still, many people remain unaware that long EMI tenor makes you pay more in terms of interest.
Finding an ideal EMI is key to your search for the best Home Loan. A Home Loan EMI calculator is one of the best instruments that give you an estimate of the EMI that will be pocket-friendly for you. Once you get the right EMI, you can next look for the best housing finance option out of many that fits your requirements and constraints.
8 Benefits of Using a Home Loan EMI Calculator
Let’s have a look at the benefits of using an EMI calculator.
- Fast Calculations
Working with pen and paper will take you hours to perform your Housing Loan EMI calculations of your loan. But, with an EMI calculator, you can perform such calculations at a click of the mouse. With these EMI calculators, you don’t need to check and recheck your calculations to get the accurate results.
- Ease of Access
The EMI calculators are readily available online, and thus the calculations done by them are much convenient to perform. As they are online, you enjoy the liberty of using them anytime and access them anywhere. You get the results instantly and you can decide on your loan proposal immediately.
- Specific Information
The biggest advantage that you can get by using EMI calculator is its specific use. There are various types of calculators available with the lenders like Home Loan eligibility calculator, part pre-payment calculator, foreclosure calculator, etc. that are specific for each type of loan that a borrower wants. You will get information related to Housing Loan EMI only if you are using a Home Loan EMI calculator.
By using the EMI calculator you can perform calculations with hundred percent accuracy, and without making any mistakes like entering the wrong loan amount, tenure, or interest rates.
- Plans your Finances
By using an EMI calculator, you will be able to ascertain the amount of EMI that you can easily pay every month without stressing your budget. Once you know the EMI and loan amount that you can afford, you will get a rough idea of the size and type of your dream home, and you can streamline your budget accordingly.
- Graphical Presentation
The calculators available at lenders website would not only give information related to your loan but would also graphically present the information. Each data points like time remaining, principal outstanding and rate of interest, etc. are displayed in a pictorial representation for easy understanding.
- Aids in Loan Approval
Once you know the EMI amount that you will pay, you can get an idea of how much loan amount you can afford. Filling the assumed and estimated loan amount raises the chances of getting the approval of your loan.
- Amortization Table
When you use a Home Loan EMI calculator, you will also get an amortization table which shows how your loan will progress over a period. Amortization table depicts the payments applied to principal and interest to be paid.
How does the Home Loan EMI Calculator Work?
Using a Home Loan EMI calculator is very simple. You just have to enter the provisional loan amount, interest rate, and the tenure for which you wish to take the Housing Loan. Once all the figures are entered, the automated platform will tell you the EMI you would have to pay.
The Bottom Line
Once you have found out the loan amount feasible for you to pay and what will be your pocket-friendly EMI, get an idea of the loan amount for which you are eligible, and your Home Loan application will sail through with ease.