The Reserve Bank of India’s sectoral data states that outstanding home loans have grown 10% year-on-year as of 21 May 2021, with a valuation of around Rs.14.62 lakh crore. Considering the benefits they bring along, this rising demand for home loans is not at all surprising.
Although borrowers should always consider repaying the loans responsibly throughout the tenor, a housing loan calculator can often come in handy in this regard. Individuals can use this calculator to plan their repayment in advance and their finances accordingly.
How can a housing loan calculator be helpful?
An EMI calculator for a home loan helps individuals to compute their equated monthly instalments to be paid to the corresponding financial institutions throughout the tenor. This online device takes into account factors like loan principal amount, tenor, and interest rate.
Thus, a housing loan calculator is one of the best tools for individuals in terms of financial planning.
With this EMI in mind, an individual can plan ahead and make the repayment punctually alongside managing their other monetary commitments. In addition, timely payments also aid individuals to improve their credit score.
What are the features of a housing loan EMI calculator?
An EMI calculator for a home loan brings along several features –
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- Accurate calculation – Calculating the housing loan EMIs manually may result in several human errors. In this regard, the EMI calculator for home loan completely rules out the probability of these errors by providing accurate results.
- Experimenting through different options – Individuals can easily find out the total mortgage cost by entering various home loan interest rates, amounts and tenors in this tool. This, in turn, helps them assess the various options for repayment.
- Comparison and analysis – Individuals can use this home loan EMI calculator to compare between different home loan schemes offered by different financial institutions. This way, they can figure out the amount of money they can save by opting for a specific lender.
- Personalised calculation – Individuals opting for a home loan can get personalised results with the help of this calculator by entering their desired interest rate, amortisation period and loan amount.
- Repayment scenarios – Using this calculator, individuals can get results based on their repayment schedules by entering details like loan interest rate, tenor and monthly payment.
- Saves time and effort – Calculating the housing loan EMI manually can be a tedious and time-consuming job. With the simple interface that this calculator brings along, individuals don’t need to be tech-savvy. They can enter their desired values in the specific fields to get the results in an instant.
- Free to use – This calculator is free to use anywhere and anytime. So, individuals don’t need to pay anything to avail themselves of its benefits.
In short, the housing loan calculator is simple to use, saves time and provides a potential borrower with an overview of the loan repayment options.
How to use the housing loan calculator?
Individuals opting for housing loan can enter the values for the following parameters in the specific fields:
- Loan amount
- Tenor
- Home loan interest rate
After entering these values, individuals will find the following results:
- Equated monthly instalment (EMI)
- Break-up
- Amortisation schedule
Besides offering access to this online device, financial institutions also extend pre-approved offers to their current customers. These offers simplify the loan application process and save time. They are available on financial products like home loans, loans against property, etc. Individuals can check their pre-approved offer by entering his or her name and contact number.
In other words, a housing loan calculator comes with plenty of features and benefits. Individuals can also use it to know how much home loan EMI they can afford before opting for one.
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