Buying a house is a dream for many people, but getting a proper Housing Loan is the way to make this dream come true. When it comes to loan repayment, it is even more challenging to determine which of the many available options to choose from for repayment. This is where a House Loan EMI calculator comes in handy because it helps you to calculate the monthly instalments and select the most suitable plan.
Why is a Home Loan EMI calculator helpful?
A Housing Loan is a long-term loan, meaning, it takes a long time to pay back this loan. Loan repayments can burden an individual if not well planned. A House Loan EMI calculator enables the borrower to see and compare different loan offers and choose the most suitable Home Loan plan.
Simply put, a House Loan EMI calculator helps a borrower to determine the EMI he or she will have to pay for a certain amount of loan, interest rate and tenure. It helps you to know the interest rates and how to plan your budget before borrowing the loan.
How does a House Loan EMI calculator work?
This calculator considers three factors:
- Loan Amount: This is the total sum of money that you wish to borrow from the lender
- Interest Rate: This is the rate of interest which the bank or NBFC charges.
- Loan Tenure: The period for which the loan is taken (generally, it is between 10-30 years).
When you enter these values in the calculator, you can get the EMI value in the blink of an eye. This helps you in determining whether the Housing Loan is affordable as far as repayment is concerned.
Benefits of using a House Loan EMI calculator
1. Helps you plan your budget
You will be able to determine how much of your salary will be taken by EMI and then plan for other expenses for the month. It also assists in preventing financial stress and ensuring that your loan repayments do not impact your regular lifestyle.
2. Compares different loan offers
The interest rates and the loan period depend on the type of loan that a particular lender is willing to provide. The House Loan EMI calculator can also compare the various Housing Loan offers by changing the interest rate.
3. Helps you decide the right loan tenure
This implies that when the loan period is long, the EMI will be low but the total interest paid will be high, and vice versa. This information is helpful in identifying the right EMI and the total amount that is to be repaid.
4. Avoids financial stress
Many borrowers accept to pay high EMIs without considering the ability to make the payment. A House Loan EMI calculator helps you choose an EMI that you can quickly pay each month based on your salary.
5. Offers convenience and provides the results at the same time
A House Loan EMI calculator is a better option than doing it manually, as it is time-consuming and also involves errors. It helps in making quick and accurate decisions.
Final thoughts
A Housing Loan is one of the most significant financial decisions one can make in his or her lifetime and choosing the proper method of repaying the loan is very important to avoid additional burdens. A House Loan EMI calculator helps you plan your loan and select the EMI structure you wish to have. It is advisable to use this tool before going for a Home Loan because it will assist you in identifying the right housing plan without any complications.
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