A home loan has become a popular loan commodity especially after the introduction of Indian government scheme to provide a home to all by 31 March, 2022. Whether it is banking or non-banking financial institutions, all are now working on much easier terms and conditions than before. The lending institutions time to time is offering lucrative interest rates, equated monthly installments and rewards to make an attractive home loan product.
Equated Monthly Instalment (EMI) is the fixed amount that you have to pay each month in order to repay your loan over the fixed amount of tenure. This fixed amount contains both principal and interest amount as per the rate of interest on which the loan was borrowed. How much you have to pay each month is an important factor in deciding how much amount of loan to apply for. As the funds are getting easily disbursed the amount of money getting involved is on a high. Thus, it becomes imperative that the borrower exercise due diligence before applying for a loan. Involvement of the internet in this regard has made things a lot easier. One of the many tools introduced through the internet which can really help in making the right choice about the loan amount, rate of interest and EMI, is home loan EMI calculator.
Home loan EMI calculator in a matter of milliseconds give the entire details regarding EMI; the fixed amount, the principal and interest component in each EMI. All this can be obtained just by entering the amount to be borrowed, the tenure and the rate of interest. The benefits of a home loan EMI calculator are:
- Accurate:Within a second it gives you exact amounts and save you from the headache of manual calculation and repetitive checking to make sure it is accurate.
- Planned Prepayments: It gives you complete detail of your planned prepayments which includes the principal and interest amount in each EMI. This can really help to decide how much extra you are going to pay for the amount borrowed over the chosen tenure and whether you can carry the burden of the amounted EMI or not.
- Specific to Loan Type:The home loan EMI calculator is specifically designed for home loan calculation. Thus, the information provided by it caters to home loan requirement only.
- Graphical Presentation: Presenting the extracted information in a pictorial manner gives the user another tool to assist in better understanding of the principal amount outstanding, interest, time remaining etc. Through graphical presentation, you would make an informed well thought out decision.
- Amortisation Table: Home loan EMI calculator would show them the progress of loan over the period of time in an amortized table presenting the schedule of repayment, along with EMI’s, interest amount, principal amount as well as each EMI payment.
Home loan EMI calculator is an essential tool for borrowers which helps them in deciding the loan amount, the tenure, rate of interest and EMIs they can opt for. One should consider the EMI calculator as an important task in the process of applying the home loan application.