Every home loan applicant should put in months of planning before applying for the home loan. Planning, research, and doing the leg work is crucial to secure the most competitive housing loan deal being offered in the market. While lenders are keen on extending attractive lending terms, such as low home loan interest rates, reasonable EMIs spread across a lengthy repayment tenor, and rebates on additional fees - one may enjoy these, only if they meet the basic eligibility criteria.
How does one ensure maximum eligibility on their home loan applications? You can start with the fundamental corrective measures, including clearing off old dues, enhancing your repayment capacity, boosting your credit score to make yourself more credit viable.
Another factor to consider is making a home loan application that is feasible and fits your financial standing and repayment capacity. While a home loan does make buying your dream home easier, the cost of the same still must be proportionate to your current income and earning potential. Essentially, it means requesting a home loan sum that you can pay back within the repayment tenor in the form of EMIs without jeopardising your financial stability or repayment propensity.
This part of the planning process is not time consuming, thanks to the provision of EMI calculators for home loans. Tools like these make calculating your tentative EMIs simpler and can be done in a matter of minutes. This article highlights the benefits an EMI calculator has in store for prospective home loan borrowers. Read on to learn more.
Home loan EMI calculators are available online, free to use for all. Here are some of the features of the product that make it popular:
The biggest benefit of an online home loan calculator is the error-free results it offers you. Even if you’re well versed with the interest formula, manual calculations are more prone to errors than digital ones. Users have to provide three key inputs:
● Their desired home loan principal amount
● Their preferred repayment tenor
● The current home loan interest rate
Based on these variables, the tool computes EMI calculations instantly and accurately. What’s more, there’s no cap on how many times one uses it, so you can choose to change the variables till you arrive at a housing loan EMI that is best suited to your budget.
The housing loan EMI calculator tool is easy to navigate and function, allowing everybody to use it to their benefit. The tool functions on the basic EMI calculation formula, which is:
EMI = [P x R x (1+R) ^n] / [(1+R) ^ n-1], where
P = Principal loan amount
R = Rate of interest
N = Number of monthly instalments
However, the calculator tool eliminates the need for manual calculations. Users only have to follow the steps mentioned below to calculate their desired results:
● Provide the home loan amount you want to request
● Choose the repayment tenor that you prefer without exceeding the lender’s maximum tenor offering
● Choose the current home loan interest rate
With the information you provide, the results will comprise the following factors:
● A tentative home loan EMI amount that may be offered to you
● The interest component of the total repayment amount
● The principal component of the total repayment amount
● The tentative repayment schedule forecasted based on the given variables
Given the home loan calculator’s speedy calculations and accuracy, it also functions as an aid for cost-benefit analysis for prospective home loan borrowers. Users can make unlimited attempts to compute their desired results, allowing them to test various home loan EMI scenarios and calculations. Users can test what various lenders offer, in terms of EMIs and how well it fits their budget through the EMI calculations done by the home loan EMI calculator.
It enables you to compare offers and various lenders to choose a home loan that is most competitive and compliments your finances best.
