Most home loan applicants in India consider the EMI as one of the most important factors before making the borrowing decision. If you wish to apply for a loan, read to know about the benefits of using an EMI calculator.
It is said, ‘knowing the future, gives you the power to change it.’ The statement cannot be any more accurate in case of home loans. If you know precisely the amount you must repay as EMI for your home loan, it can help you in more than one ways. Availing a home is not just about choosing the right lender; it also involves meticulous planning in terms of knowing your eligibility, understanding the terms and conditions of the loan. Having all this information can come handy in planning your finances before applying for the loan.
The EMI (equated monthly instalment) is the fixed amount that you must repay on a specific date of every month till the end of the loan tenure, as agreed while taking the loan. So, it would help if you know the total amount you would be repaying till the end of your loan period (which is usually 15-20) years, to avoid any financial stress. To calculate the amount, you can use the home loan calculator. It is an easy-to-use and free online tool that allows you to determine the right EMI that you can afford to pay without compromising on your other financial goals.
Using an EMI calculator has benefits, including:
Easy calculation process
One of the best thing about using the EMI calculator to determine the EMI amount for your home loan is that the tool is easy to use for all. You need not have any technical knowledge to use the tool. You must enter the loan amount (that you wish to avail), the interest rate (levied by the lender), processing fees, and the duration (the duration for which you want to borrow). The calculator will do all the computation and give you the exact result.
Know the breakup of charges
Most financial organisations present the home loan EMI as a percentage of the loan amount. However, they do not furnish details of the various components included in the EMI. By using the home loan EMI calculator, you can know the breakup of charges, including the total interest payable, and the processing fees associated with the loan. This will help you know the actual cost of the loan.
Helps decide the right tenure
By knowing the exact EMI amount you must repay every month, you can determine the right loan tenure. If you can afford to repay higher EMI, you can opt for a shorter duration, but if you cannot afford to pay higher EMI or want the EMI to be affordable, you can apply for a long-term loan.
Manage your finances better
During the course of the loan repayment, sometimes, you may have access to additional funds like bonus received from your investment. If you want to reassess your finances and check how repaying an additional EMI or paying a higher EMI can help you pay off the loan before the actual term, EMI home loan calculator can help you do that.
Verify the information
If you are negotiating a home loan deal with any lender in India, you can cross-check the information provided by the lender regarding the repayment schedule with the repayment table from the EMI calculator. However, remember, sometimes the numbers may differ as the lenders may also include other fees while calculating the EMI amount.
With so many benefits of using the EMI calculator, you can plan your finances better and repay the loan easily.