Why should you check the Home Loan EMI Calculator before signing on your home loan application? Because it helps you make an informed decision on your home loan!
A Home Loan EMI Calculator is a great tool for someone looking to buy a home and apply for a home loan. Home loans are huge financial commitments and one has to be sure that they can fulfill the repayment commitment through those 20 some years.
That is where a Home Loan EMI Calculator can help you.
In simple words, a Home Loan EMI calculator shows you the approximate EMI amount that you have to shell out every month, based on the loan amount and interest rate you have been offered.
It looks something like this: [Insert HL EMI Calculator Image]
What Are The Benefits Of Using A Home Loan EMI Calculator?
There are several advantages to using a home loan EMI calculator –
- Quick And Simple Calculation
Home Loan EMI Calculators are very simple to use. You just have to input the loan amount, the tenure you want and the interest rate that you have been offered. The tool will automatically display the tentative EMI amount per month. You can adjust the values, either increase it or decrease it, and the EMI amount will adjust accordingly. This is very easy to use and helps you get an idea of how much you will have to shell out every month.
- Allows You To Compare Loan Offers
Home loans are a major decision in one’s life. So you obviously have researched and collected offers from a few different banks. How to compare these offers? A Home Loan EMI calculator is your best bet. You can enter the interest rate and tenure you have from the different bank offers and determine the one that suits you best. It is important to be sure of the Home Loan product you choose because, we cannot reiterate this enough, it is a long term commitment and you have to be doubly sure of what you are getting into.
- Helps In Better Loan Management
Somewhere along the tenure of the loan, a few borrowers are faced with difficulty in making the EMI payments. Some borrowers have surplus money and don’t know how to utilize it to prepay the loan. Calculating on a Home Loan EMI Calculator beforehand will help you understand how to effectively repay your loan. This can avoid any future surprises and complications with your home loan repayments.
- Manage Your Finances Better
Home loan may not be your only loan commitment; there may be a car loan, education loan, or a personal loan that needs to be repaid too. How can you plan your finances well to manage all these repayments in a month? A Home Loan EMI Calculator can help you with that. When you know the tentative EMI amount every month, you can adjust your loan amount or the down payment amount accordingly to reach a lower EMI amount. If you come across any surplus amount in the form of bonus or incentives, you are sure to invest it in one of the loans. using the HL EMI Calculator, you can find out how changes to your EMI amount can help you repay your loan sooner.
- Choosing The Right Tenure
Home Loans can go on for up to 30 years. But what is the right tenure for you? Going for a longer tenure can get you lower EMIs while choosing a shorter tenure means higher EMI amount. You cannot fix the EMI amount as it is based on the loan amount and rate of interest, and more importantly, the tenure. By using a Home Loan EMI Calculator, you can find the tentative EMI amount for different tenures. This allows you to choose a tenure that gives you the optimal EMI amount to suit your financial standing.
Home Loan repayments require meticulous planning and continuous monitoring to ensure that you don’t end up paying too much interest. With RBI guidelines assuring that floating rate loans should not have a pre-closure penalty, it is fiscal prudence to try and close your home loan sooner than the tenure. A Home Loan EMI Calculator is a great tool to help you manage your finances and your home loan repayments.