Many of us have set our sights on buying a dream home in India. Owning a home is a financial milestone that many of us aspire to achieve and to have a place to call our own. However, financial planning can be challenging, especially if you plan to apply for home loans. Questions like how much will be in monthly instalments and what interest rate can a person expect?
To make our lives a whole lot easier, banks and financial institutions have introduced the home loan EMI calculator in India. While helping you make your dream home a reality, these financial institutions offer a user-friendly online loan EMI calculator to make your loan repayment journey seamless and hassle-free. In this blog, let us explore how you can enhance this powerful tool to simplify your financial journey.
What is a Home Loan EMI Calculator?
The home loan EMI calculator in India is an important tool that simplifies the complex task of estimating Equated Monthly Instalments (EMIs). An EMI is the fixed monthly payment a borrower makes to the lender. The amount that you need to pay for your home loan depends upon several factors, including the loan amount, term, and interest rate.
An EMI calculator helps you evaluate the amount that you need to pay every month to repay your home loan. You can use an online home loan EMI calculator in India to determine your housing loan EMIs.
To calculate your EMI amount using a home loan EMI calculator in India, you will need to enter your loan amount, term, and interest, and your home loan EMI will be displayed in seconds. Using a home loan EMI calculator can help you determine the right amount for a loan and duration so that you can make your home loan payments without affecting your finances.
Read more: Tips For Finding A Qualified Home Loan Broker
How to Use Home Loan EMI Calculator in India?
Using an online home loan EMI calculator in India is the easiest way to calculate home loan EMI. Here’s a step-by-step guide on how to use EMI calculators:
- Input Loan Amount: Enter the total loan amount you are considering.
- Enter Interest Rate: Specify the applicable interest rate. It is a crucial factor influencing your EMI.
- Choose Loan Tenure: Select the repayment tenure in years. The tenure significantly affects your monthly EMI.
You may also use a mathematical formula to calculate your home loan EMI amount:
EMI Amount = [P x r x (1+r) ^n]/[(1+r) ^n-1]
Here, ‘P’ is the loan amount, ‘r’ is the applicable interest, and ‘n’ is the number of instalments you need to pay. For instance, if a home loan of ₹50,00,000 is borrowed at an interest rate of 8.7 per cent per annum and for a tenure of 10 years (that is 120 months).
Then, it can be calculated as follows:
= [50,00,000 x 8.7 x (1+8.7)120]/ [(1+8.7)120-1]
which is equal to ₹ 62,529 per month.
4 Major Advantages of a Home Loan EMI Calculator in India
- Easy to Use
Loan EMI calculators are very easy to use. Especially with the introduction of online home loan EMI calculator in India are easier to use, with no complex mathematical formulas that need to be solved. All you need to do is enter the principal home loan amount, applicable interest rate, and loan term, and the online loan calculator will display your EMIs within a fraction of a second.
- Selecting the Right Home Loan Term
When you increase your home loan term, your EMI amount decreases, and vice versa. Learning the right EMI amount allows you to decide the right home loan term for yourself. You can enter different loan terms in a home loan EMI calculator in India and then select the right term as per the suitable EMI amount.
- Proper Home Loan Management
After paying your home loan EMIs, you may have excess funds that may help you when you want to make pre-payments to reduce your EMIs. In such cases, a home loan EMI calculator in India might assist you in calculating your new EMI and managing your home loan more effectively.
- Comparing Different Home Loan Offers
Home loan interest rates and charges vary depending on the bank or financial institution. Using an EMI calculator for house loans, you may calculate your EMIs and compare loan offers from several lenders. A home loan EMI calculator in India will allow you to understand the entire cost of each loan and make an informed selection.
Securing Your Dream Home: A Finely Calculated Path
Effective financial planning is the key to achieving your dream of homeownership. The home loan EMI calculator in India serves as a valuable tool, providing simplicity and precision in the complicated landscape of home loans. By understanding home loan EMIs and advanced technology, informed decisions become a way for a secure future.
When you plan to buy your ideal home, keep in mind that a home loan EMI calculator can help you on the path to financial stability and success. With Tata Capital’s home loan EMI calculator, you can save significantly on your house loan! Visit their website
