A home loan is an effective and reliable way to gather funds for house purchases. Since taking a home loan is a long-term commitment, borrowers must emphasise on the interest component of the loan amount to enjoy an affordable loan. Prior calculation of monthly instalments is one way to gain affordability while servicing a loan.
However, home loan EMI entails long calculations. Therefore, computing the formula manually can leave substantial room for errors. To avoid such errors, users can use a home loan interest calculator and calculate interest rate and affordability, all at once.
How to Use a Home Loan Interest Calculator?
To calculate home loan EMI, individuals can follow the below-mentioned steps:
- Visit the website of the preferred lender and look for the EMI calculator.
- Fill in the loan amount that one wishes to borrow
- Enter the tenor over which one would like to repay the loan amount
- Put in the applicable interest rate
After filling in these details, the calculator will immediately display the total payable interest, total payable amount, and amortisation schedule.
Additionally, individuals can use the sliders to alter the amount in the home loan interest calculator. By doing this, they can look at how the EMI changes as per the other credentials. This will help them make an informed decision. After knowing the EMI, individuals can learn about the list of all documents needed for a housing loan for a hassle-free application process.
5 Benefits of Using a Home Loan Interest Calculator
Apart from calculating the home loan EMI, this online tool also helps individuals know their eligibility and tenor. It is a perfect way to assess loan affordability. The loaded benefits of this tool are mentioned below:
1. Quick calculation
Unlike manual calculations, this tool is extremely quick and swift in computing the results. Users will just have to enter a few details to know the associated EMI.
2. Helps choose the right tenor
After getting to know the EMI, individuals can choose the right tenor of the loan according to their convenience. For example, they can decide if they can afford to pay lower EMIs with a longer tenor or pay a comfortable EMI with a shorter loan tenor.
3. Helps in loan management
A housing loan interest calculatorhelps in the overall loan management. For instance, if one wishes to make a prepayment, they can revisit their financials and compute how the prepayment may be beneficial for paying off the amount before the end of the tenor.
4. Helps compare loan offers
A borrower can use the interest calculator to compare home loan offers of different financial institutions. As a result, shows the total cost of the loan, it is extremely beneficial in narrowing down the best options. However, to benefit the most from it, prospective borrowers must decode the home loan fees and charges.
5. Accurate calculations
Manual calculations don’t always turn out to be correct. In fact, they can mislead the borrower by producing wrong results. This calculator accurately calculates housing loanEMI results and leaves no room for errors.
Further, after knowing their monthly instalments and eligibility, prospective borrowers can proceed with the application. Certain lenders render attractive rates on home loans for individuals who meet/exceed the eligibility criteria.
In addition, borrowers must look for financiers providing personalised pre-approved offers that simplify the entire application procedure. Simply provide your name and contact details to check your pre-approved offer.
Evidently, a home loan interest calculator is the best way to avoid overburdening oneself. Choose the appropriate tenor and EMI and increase affordability to enjoy a burden-free loan servicing.
