The home loan EMI calculator is truly among the best elements in the toolkit of an informed borrower. It is freely available on most lender websites and is fairly simple to use, even for those who aren’t tech-savvy. A home loan EMI calculator tells you your EMI, alongside the total interest payable. It should be the go-to tool for any potential homeowner as accurate information helps make smarter, more informed decisions, which can save you money in the long run.
To help you better understand the home loan EMI calculator and its importance to you as a borrower, take a look at these pointers.
Steps to use the home loan EMI calculator
Step 1: Enter the loan amount you wish to borrow in the field mentioned ‘Loan Amount’.
Step 2: Set the home loan interest rate in the field marked ‘Interest Rate’.
Step 3: Pick a tenure of your choice and add it to the field marked ‘Tenure’. Take note of how the tenure is calculated, in either months or years, and convert the entry accordingly.
Step 4: Click the ‘Calculate’ button or simply view the automatically-displayed result.
On following the steps outlined above, you will be able to see your EMI and total interest payable.
Now that you know how to use the home loan EMI calculator, take the look at 3 benefits of doing so.
a) Provides error-free results
The home loan EMI calculator guarantees accurate results. Manual calculations are susceptible to error and moreover, the EMI formula is not very straightforward. Results obtained via a home loan calculator can be relied on for their accuracy as the mathematical formula is in-built and the computer does the calculating.
b) Helps plan repayment
The data you get from the housing loan calculator is vital to proper repayment planning. When you forecast your EMI, and know how much debt you can handle each month, you can take decisions such as:
To alter the principal amount
To pick a more suitable tenure
To curtail luxury spends
To securing additional monthly income
Taking a home loan without judging how large your EMIs are and what it takes to service them is dangerous, and you run the risk of defaulting in the future.
c) Grants insight into optimal prepayment windows
Some home loan EMI calculators provide you with a loan amortisation schedule. This is a detailed break-up of the EMI into its principal and interest components all through the repayment tenure. With this information, you can identify the best times to prepay your principal and thereby save on the total interest outgo. Keep in mind that the interest component is higher in the initial parts of the tenure and so, part-prepayments made early have a greater impact on the net interest paid.
When availing a home loan, your goal should be to borrow as optimally as possible and a housing loan calculator helps you do just that. Additionally, the calculator can help you pick the right loan, based on the amount repayable. You can aim to strike a balance between loan features and the cost of borrowing. To do this optimally, an offering that you can consider is the Bajaj Housing Finance Limited Home Loan.
This Home Loan offers ample finance, up to Rs.3.5 crore, at a competitive home loan interest rate. Further, you get access to a flexible tenure of up to 30 years, which can help you keep repayment affordable and the loan cost-effective. You can use the home loan EMI calculator to arrive at the right loan amount and tenure. Other noteworthy features include the minimal requirement for documentation and relaxed eligibility terms. These allow for easy loan processing, minimizing delays greatly. In fact, for a truly hassle-free loan experience, all you need to do is apply online from the comfort of your home today!