Willing borrowers must be aware of several aspects of their credit advance like EMI amount, interest outgo, and total cost of borrowings. It can help them make a proper financial plan to repay all their dues. They can quickly generate all these figures using a home loan EMI calculator. So, prospective borrowers should be aware of how online devices like these can work in their favour.
Features of home loan EMI calculator
Following are the features individuals can get from this online calculator:
- Easy calculation of EMI
Intending borrowers can know their home loan EMI amount without the hassle of manual calculation. Individuals need to provide inputs such as tenor, interest rate, and loan amount. After processing the numbers, this calculator displays the instalment amount within a second.
- Amortisation table
This EMI calculator also generates an amortisation table for the intending borrowers. This table gives a detailed break-up of the EMIs that one has to pay throughout the tenor.
- Accurate result
A major advantage of this home loan calculator is that individuals can calculate EMIs of their home loan without any mistakes. Since manual calculations involve chances of mistakes, it is better to use this online calculator. It uses the same formula to determine EMI amounts. Being a computerised programme, it can compute with zero error.
- Faster calculation
EMI calculation using pen and paper can be a lengthier process. However, this virtual calculator takes only a second to generate the same result. Individuals just need to give the time to enter the loan tenor, interest rate and borrowed amount in respective fields.
- Easy comparison of lenders’ offers
The interest rate on home loans is not the same for all the lending institutions. A little difference in interest rate can substantially affect the overall interest outgo. So, comparing this rate of several lenders, individuals can choose a lender offering the best offer.
However, individuals should not choose a lender solely based on its interest rate. They also need to ask their home loan lender several important questions before choosing one.
- Easy interface
The online calculator has an easy-to-use interface where borrowers can comfortably enter required inputs. So, they can get to know the home loan EMI amount quickly by giving the required information.
This way, the home loan EMI calculator can be an effective tool for individuals to get correct EMI amounts easily and quickly. However, apart from these benefits, individuals must understand how to use this calculator.
Steps to using a home loan EMI calculator
Following are the steps individuals need to undertake to use a home loan calculator:
Step 1: Visit the official website of lending institutions in India and find the calculator.
Step 2: Mention the loan tenor, interest rate and loan amount in respective boxes. Click on the option showing “Calculate”.
Upon completing these steps, they can see their instalments on that calculator page. Following this, individuals can understand what part of their present income they must keep aside to pay off EMIs comfortably. It will reduce their chance of loan delinquencies. Thus, they can avoid the consequences of defaulting on home loan EMIs.
Furthermore, several lenders extend pre-approved offers on their financial products, such as loans against property, housing loan, etc. Individuals can shorten their loan application process by leveraging this feature. They need to submit their names and contact information to check their pre-approved offers.
In conclusion, by using the home loan EMI calculator, borrowers can easily determine several crucial home loans. This will help the intending borrowers know their financial liabilities after taking the credit advance.