Housing loans are big-ticket financing options. These are long-term commitments and need systematic management and informed decision-making to avoid difficulties related to repayments. Moreover, failing to pay EMIs on time can hamper the borrower’s credit history. Hence individuals need to chalk out the repayment plan and overall financial management beforehand.
In this regard, using an EMI calculator for housing loan can be of great help. Here is a detailed idea of the benefits that one can avail from a home loan calculator.
What are the benefits of a housing loan calculator for borrowers?
The housing loan calculators are free online tools that are available on the websites of various lenders across India. Here is a detailed idea about the various benefits of EMI calculators and how they can help prospective borrowers make informed decisions.
Delivers error-free results
EMI calculator is a handy tool for calculating home loan EMIs accurately. It delivers error-free results and is much more precise than manual calculation. Besides, with the availability of online housing loan EMI calculator, potential borrowers can get the result in a fraction of a minute.
To get the output, potential borrowers must enter the home loan amount and select the preferred repayment tenor and the provided housing loan interest rate. With these data, they can do the EMI calculations accurately and instantly.
Comparison among lenders
These calculators can help borrowers to easily compare the loans offered by different lenders. This will let them check the EMI outflow and interest payable for loans offered by various lenders. So, after a thorough comparison one can make a suitable choice of lender.
Convenient to use
The housing loan calculator is one of the most convenient and user-friendly tools to calculate the EMI instantly. This calculator also eliminates the risk of errors leading to a wrong decision. The borrowers need to enter details like the home loan amount, repayment tenor, and the offered home loan interest rate. The formula used for EMI calculation is:
Loan EMI = [P x R x (1+R) ^N] / [(1+R) ^N-1]’, Here the P stands for the principal loan given to the borrower, R is the rate of interest on the loan and N is the number of monthly instalments. By providing the necessary data, they can get interest component of the total repayment amount, and the home loan EMI amount instantly.
The option of customisation is one of the most notable factors of a housing loan interest. The applicants can enter the values multiple times to get a suitable loan repayment schedule. They can make as many changes and adjustments they want and can get accurate results each time.
Strategic financial planning with amortization schedule
To plan the loan repayments accordingly, potential borrowers can also access the loan amortisation schedule that helps in better financial planning. This table or chart shows the detailed breakup of a home loan’s repayment. Borrowers can get the idea of how much they would be paying for interest payment.
Free of cost
Finally, these calculators are highly budget-friendly and do not require any additional charges from the borrower. Since they are absolutely free of cost, the borrower can access them from the lender’s website and use them as and when necessary. These are also available round the clock and one only needs an internet connection and a device.
How to use a housing loan EMI calculator?
Potential borrowers can easily use an online calculator to calculate the EMI with three easy inputs. Here are the steps one can follow to use these efficiently:
- Visit the lenders’ official website
- Look for the home loan EMI calculator
- Enter relevant details like loan amount, tenor, and interest rate
- Get the total EMI amount and payable interest instantly
Besides providing a EMI calculator for housing loan, the reputed financial institutions also provide pre-approved offers to their customers. Potential borrowers can check their pre-approved offers by submitting information like name and contact number. These are available for various financial products such as loans against property, etc. Applicants can now speed up the loan application process and save time.
Apart from knowing how to use an EMI calculator for housing loan, potential borrowers should also keep the documents needed for a home loan handy. With a clear idea of the loan eligibility criteria of the lender and the documents required, one can increase the chances of loan approval.