A home loan is a long-term financial commitment. So, home loan borrowers have to conduct proper repayment planning to ensure easy and hassle-free repayment. This is when the home loan instalment calculator comes in as a relief.
With the help of an EMI calculator, individuals can compute and calculate the EMI amount easily and get a clear idea of loan affordability. This will help avoid them avoid any financial issues down the line and ensure smooth financial management.
How home loan EMI calculator aids prospective borrowers?
The online home loan instalment calculator allows the borrower to calculate the exact amount of EMI that is to be paid every month. In fact, using this calculator, they can try out different permutations and combinations to figure out the loan amount that they can afford without straining the finances. What makes this tool even more popular is that it is free to use and easy to access.
Here are some other ways by which home loan borrowers get benefited from this home loan calculator.
- Helps in planning financial inflows and outflows
One just needs to input the loan amount, the applicable rate of interest and the loan tenor to get accurate EMIs. It will also assist them in making an informed decision regarding their finances.The home loan instalment calculator helps an individual to calculate their EMIs before taking their home loan precisely. If the borrower knows their payable EMI beforehand, this will help them a lot in planning their financial inflows and outflows for the future.
- Makes the calculations easy, fast and precise
Doing manual calculations for estimating the EMI for home loans can be quite time-consuming. It might take hours to perform these calculations, and there will still be room for errors. But, with this online calculator, one can save one’s precious time by calculating faster and choosing the EMI amount and tenor as per their financial capability.
- Allows one to choose suitable loan tenor and EMI
The monthly EMI amount will depend on various factors like the loan tenor, the offered interest rate and the sanctioned amount. That means with the decrease in the loan amount, the EMI also increases. However, EMI amount decreases when the loan tenor increases.
So, with this calculator, one can compute and choose the EMI as well as tenor as per their affordability and choice.
- Assist in comparing home loan offers by different lenders
It gives the individuals a scope to compare the loan offers provided by different lenders. By using this online calculator, they can get an estimate of how much EMI they need to pay every month, depending upon the varied interest rates of the lenders.
So in this way, they will be able to compare the different loan offers and close the deal with the one with the lowest repayment liability.
- Helps in planning one’s home loan prepayment
If anyone has a sufficient amount to pay off their loans’ EMIs, they decide to repay it before the scheduled time. With the help of a home loan EMI calculator, they can calculate the EMI payments, the total interest payable and accordingly proceed to prepay the loan at the right time. The prepayment not only curtails the interest payments but also reduces the loan tenure.
Furthermore, there are several leading financial institutions that provide pre-approved offers to their clients to streamline the processing of loans. These offers are available on distinct financial products such as loans against property, and others. You can check your pre-approved offer online by providing essential details like name and contact details. Besides using an online EMI calculator to calculate home loan EMI amount one should be aware if they are eligible for a loan.
If the borrowers have a good credit score or have a steady income, then their eligibility for home loans increases. One must know that the eligibility criteria for the home loan for salaried individuals are different than that of self-employed individuals. So, an applicant should check the applicable eligibility and then proceed accordingly. This will help in reducing loan rejection chances.
Indeed, potential home loan borrowers should take the help of this Home Loan EMI Calculator to plan their finances in a better way. All one has to do is enter the lender’s website, navigate to the tool, enter the requisite data and get the EMI and interest payable-related data instantly.