While home loans are convenient credit options to fund one’s purchase of a dream home, it is essential to repay the loan amount without default.
So, before availing of a home loan, the borrowers must be aware of how much amount they should pay as EMI and total interest. To get an estimate of the EMI payable and the interest payable, one can use the home loan EMI calculator. Check out the sections below to learn how to calculate loan EMI using this online calculator and the benefits of using it.
Steps to calculate home loans using the home loan EMI calculator
A home loan calculator is a handy, easy-to-use and quick-to-perform online tool that streamlines the calculation of home loan EMIs. It helps to avoid the hassles of calculating EMIs manually, and also gives instant results within a fraction of a second.
Follow these simple steps to calculate the EMI of the home loan using the EMI calculator:
- Find the home loan EMI calculator webpage on the lender’s website.
- Now, use the slider to adjust the values of the principal loan amount, tenor and interest rate in the EMI calculator form. Alternatively, one can even directly input the values in the relevant box provided to enter the values in the precise form.
- Finally, click on the “Calculate” tab to view the automatically calculated payable EMI amount.
- When the changes are made in the values by using the slider, the online house loan EMI calculator will automatically re-calculate the monthly payable EMI amount and the total interest payable depending on the inputs provided. This calculated amount will also help one to calculate their home loan eligibility.
These are the basic steps following which most home loan EMI calculator works. But there might be a slight change depending upon the different lender’s websites.
Some house loan EMI calculators provide one with the display of total expenditure as well. Even some EMI calculators display the results in a much more informative way by providing a visual representation of the repayment schedule.
Advantages of using a home loan EMI calculator
Here are some of the top benefits of using an online home loan EMI calculator.
- It provides the borrowers with an accurate break-up of various financial charges associated with a home loan.
- It helps one in providing a general idea regarding planning one’s finances and budget in a way that does not affect the other monthly expenses.
- Relieves one from the trouble of performing complex and tedious manual calculations
- Helps one in comparing various home loan options provided by various lenders and aids in choosing the most suitable loan as per the budget and affordability.
- Its user-friendly interface makes it more accessible for others to calculate home loan EMI anytime and anywhere. It is entirely free and safe and does not require any log in or sign up.
Most financial institutions and NBFCs provide these free loan EMI calculators. They also provide pre-approved offers to their customers in order to simplify the loan application process. These offers are commonly available on various financial products like loans against property and others. Borrowers can check their pre-approved offers from the lenders by providing some basic details like their names and contact numbers.
Therefore, before approaching any financial lender for a home loan, it is better to perform all calculations beforehand using the home loan EMI calculator. This will help one in managing one’s finances so that EMI payments are not a burden anymore. One should also be aware of the home loan charges, the eligibility criteria and the documents necessary for hassle-free loan approval.