In the current times, one thing will heighten your sense of stability is your home. Your own home that will keep you safe and financially secured. You need not spend all your savings in one go. The best option to go for is a home loan. Applying for a home loan can be one of the biggest decisions you make in your entire life. So, it is very important to understand the process and make informed decisions.
Thinking of applying for a home loan? But worried about how you will manage the EMIs? There’s an easy way to work out the numbers with A Home Loan EMI Calculator.
An EMI Calculator is a free online tool that helps you plan your monthly installments. Your Equated Monthly Instalment (EMI) is calculated basis the loan amount, loan tenure and interest rate. This calculation, if done manually, can be very complicated and time-consuming. That is why using an EMI calculator makes a lot more sense.
Home loan EMI calculator in detail
Most lenders provide an Online EMI calculator on their websites. All you have to do is visit the page and enter the required details (loan amount, tenure, and interest rate) and you will get the results within seconds. You’ll be given estimates of your EMI along with the interest and total amount payable. Some lenders, like HDFC, will even instantly generate an amortization schedule for you to get a much better idea of the yearly cost breakdowns on your home loan or Mortgage Loan.
In order to get estimates that are relevant to your situation, you should be as accurate as possible when it comes to entering your details.
The interface is quite simple and user-friendly. You can either use the sliders or type your details into the entry fields. Input the loan amount you want, the tenure (in years), and the interest rate. If you don’t have a quote from a lender, you can enter the prevailing rate.
How can an EMI Calculator help?
A home loan is a long-term commitment. When you take a home loan, you lock into a repayment tenure of at least 20-30 years. For example, if you take a loan of Rs 50 lakhs, and the average monthly EMI is Rs 30,000, it will impact your monthly expenses. Therefore, it is necessary to plan your expenses. An EMI calculator gives you a detailed breakup of your monthly outflows (EMIs) so you can budget accordingly.
Before EMI calculators, people had to talk to loan managers to understand their EMIs and its components. It also meant talking to people for hours and spending too much time doing the math. With EMI calculators so easily available on websites of various lenders, you can easily get to know how much you need to set aside for each monthly instalment.
The calculator can help you determine, based on your current earnings, what EMI amount is comfortable for you.
There are more benefits of using an EMI calculator.
Plan your future expenses
When you know how much money you need to pay as an EMI, it becomes easier for you to manage other monthly expenses.
Choose the right loan amount
Once you know how much EMI you can comfortably pay, you can adjust your loan amount according to that. This will help you avail a home loan that is financially comfortable in the long run.
Calculating different EMI options allows you to choose the timing of your loan. You can also reduce the amount of the loan or increase it if you wish. There are plenty of home loan EMI calculators available these days that you can use. All you need is a laptop or a smartphone.