Over the years, financial institutions, including NBFCs in India, adopted several technologies to ensure hassle-free customer service. Likewise, they also introduced several tools for borrowers to facilitate their repayment planning and the home loan EMI calculator is one such invention.
Using this online tool is always very helpful to make a well informed and accurate decision. Individuals can calculate their monthly payments using the home loan EMI calculator available on their lenders’ websites.
5 Benefits of Home Loan EMI Calculator
Although individuals can calculate home loan EMI manually, the formula for the same is complicated and takes a lot of time. Moreover, the chance of getting an erroneous result is also high.
However, borrowers can also use a home loan EMI calculator. There are several benefits associated with it. They are:
Determines the borrowing capacity
Using the home loan EMI calculator before applying for the loan will allow the borrowers to gauge the monthly payable. A proper calculation can give the exact idea of how much they can afford monthly.
EMI calculator can help individuals to adjust the home loan tenor and the loan amount to get the most feasible EMI option. Additionally, it also helps them to decrease home loan interest outgo by adjusting the tenor accordingly.
Helps with prepayment planning
Before applying for a home loan, individuals should also make provisions for part-prepayment to clear debts faster. This, in turn, reduces the interest rate, and borrowers can repay the home loan sooner. However, it is this EMI calculator that helps them estimate how part-prepayment reduces their interest outgo.
The major benefit of a home loan EMI calculator is that it is available 24/7 for free. This tool saves time for rigorous calculations. Hence, individuals may find it helpful to use this tool to calculate their home loan EMI. Besides saving time, it also ensures that borrowers are well aware of their monthly liabilities beforehand.
Helps secure competitive interest rates
Home loan interest rates vary with lenders. Hence, this rate decides the borrowing cost. Individuals need to look for affordable interest rates to reduce the repayment burden. However, with this tool, they can compare different lenders and check the EMI and interest payable. It enables them to secure the most competitive interest rates.
The result that one can get from using an EMI calculator would be reliable. The user can get an accurate result as it provides accurate and faster results. Even if an individual does the calculation manually, it is always better to cross-check for any discrepancies with this tool.
Besides, individuals should also know the procedure of using this tool.
How to calculate home loan EMI?
You need to visit the online portal of a reputed lender and open the home loan EMI calculator and follow the steps below.
- Enter loan amount
- Select a tenor
- Input applicable interest rate
You can see the EMI payable, total interest and total amount payable within seconds. However, besides checking the monthly instalments, individuals also need to submit a list of home loan documents. Individuals can also avoid cumbersome paperwork with pre-approved offers.
Renowned lenders provide pre-approved offers for existing and eligible borrowers to streamline the process of availing loans. Hence, you can check your pre-approved offer by submitting names and contact details. These offers are available for various financial products like home loan, loan against property etc. Moreover, you also do not have to submit additional documents while applying.
Hence, applicants using a home loan EMI calculator save time, avoid the risk of missed EMI payment and compare interest rates to secure attractive home loan deals.