Deciding to avail a home loan is not the end of your home-buying journey. Before you apply for such a loan, you need to take a series of decisions to pick the right one that suits your financial needs. Although several banks offer easy home loans at competitive rates, it is essential to compare different alternatives and make a well-informed decision.
If you are considering a housing loan, you’d most likely be planning to repay the loan in the form of monthly instalments (EMI). In case you are wondering how much of a monthly liability you can afford, try the home loan EMI calculator.
You don’t have to be a mathematical prodigy to know how much EMI you’d need to pay every month to repay your loan amount in a certain time. All you need to know are a few basic terms before you can start using this useful, money-management tool to plan your finances better. Here they are:
- Principal amount: It is the total sum of money that you’ve borrowed that you will have to repay.
- Loan tenure: It is the time period within which you are expected to repay the loan.
- Applicable rate of interest: It is the rate agreed between you and the lender at which interest will be charged on the principal amount.
- EMI: EMIs or Equated Monthly Instalment is the monthly repayment amount you have to pay as per the agreed amortization schedule.
Additional Read – How Home Loan Calculators Help you Reduce your Home Loan EMI?
Benefits of a Home Loan EMI Calculator
Here are some of the many ways in which a home loan EMI calculator can assist you:
1. Choosing the right tenure:
You can use a home loan EMI calculator to calculate your monthly EMI for a particular loan tenure. If you think you can manage a higher EMI, you can choose a shorter loan tenure.
2. Ease of use:
Using a home loan calculator involves no rocket science. All you need to do is to key in the principal amount, rate of interest, loan tenure, and voila, a precise calculation of your EMI awaits your computer screen within seconds.
Additional Read: Different Types of Home Loan Calculators Everyone Must Use to Reap Benefits of Home loan
3. Effective loan management:
There can always be a scenario during your loan tenure when you have access to some extra funds. The home loan EMI calculator comes handy if you want to know how prepayments before the stipulated end of your loan term can impact your EMIs.
4. Comparison between loans:
With several lenders offering easy home loans to prospective borrowers, it can be challenging to choose the right one. You can use this EMI calculator to compare the overall cost of different loans, thereby deriving the best value out of your money.
Let Tata Capital be your home loan provider and bid adieu to all your financial woes. Visit their website to find a one-stop destination for all your money-related queries.