Home Loan EMI Calculator: Benefits & Features

When it comes to the application of the home loan, it is possible to determine an exact housing loan EMI these days. Yes, you can do that using the home loan EMI calculator. 

Do you want to know about the benefits of the home loan EMI calculator and how to use it? Read on and know more!

Here’s how you can use the home loan EMI calculator 

1. Land on the website of the lender you want to apply for the home loan with. Open the EMI calculator from the calculators’ section. 

2. On the housing loan EMI calculator, you will need to choose your desired loan amount, repayment tenor and applicable home loan interest. 

3. Once done, the EMI calculator will display an exact home loan EMI that you will have to pay over the tenor. It will also showcase home loan interest charges and total cost (principle + interest) 

Benefits of using the home loan EMI calculator 

1. It gives you correct results 

You don’t have to scratch your head and rely on a manual method to compute your home loan EMIs. The EMI calculator shows error-free results. 

2. No delays in showing the results 

Using the EMI calculator makes it less time consuming for prospective home loan applicants. It helps to calculate their housing loan EMIs on the go. The results showcased by the tool are real-time. 

3. It lets you plan your finances in advance 

Using the home loan EMI calculator, it is possible to indulge in proper financial planning. This way, you can be in complete control of how much to pay per month while availing yourself of a home loan to buy or build your dream home. You can know if your income can support the EMI amount over a tenor. It can also help you increase or decrease the loan value to adjust to your budget. 

You are now aware of the steps to use the EMI calculator and its advantages. You can also plan your finances well by using the EMI calculator right away. 

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Top Benefits and Uses of Home Loan EMI Calculator

 Securing a lump-sum credit to purchase your dream house might sound appealing. However, it might not be a convenient choice if not planned efficiently. These large sums are accompanied by substantial interest components and can result in hefty repayments. Defaulting on an instalment due to financial constraints in the course of a loan can negatively impact a borrower’s credit score. Using an EMI calculator before applying can help individuals plan their repayments more effectively.

Following are some significant ways in which an EMI calculator can benefit potential borrowers.

1. Accuracy and speed: EMI calculation involves a complicated procedure, and manual computation can result in discrepancies. Using a home loan EMI calculator provides accurate results within just a few seconds.

2. Effective financial management: An EMI calculator displays the total payable amount, EMI and the interest component separately. Individuals can adjust their inputs until these results match their home loan eligibility and affordability. Picking a suitable tenor and loan amount can aid in smooth repayment.

3. Comparison: Since interest rates vary across lending institutions, using an EMI calculator can help users compare monthly repayments under different lenders easily.

4. Free and easy: Home loan calculators are available on almost all financial institutions’ websites, free of cost. They are also easy to use. Individuals only need to enter 3 inputs to get the results.

Potential borrowers can enter the following details to view their payment breakup.

• Required principal amount

• Interest rate

• Preferred tenor

Note that a longer tenor might result in smaller home loan EMI payments but will lead to increased interest cost in the long run. Conversely, if you can compromise your luxuries for higher EMIs, choose a shorter tenor and save remarkably on interest payments.

Also, be aware of home loan tax benefits under the tax regime you have opted for, new or old.

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