Purchasing a home is a significant rite of passage and a long-term financial goal, which is why the Government of India provides several tax benefits to encourage its citizens to buy one. A loan is repaid through optimally calculated EMIs or Easy Monthly Installments. Having said this, before you apply for housing finance it is considered a prudent exercise to precisely calculate the nature of EMIs as a borrower.
The EMI can be calculated using the following formula:
EMI = Principal Amount + Interest payable on loan
EMIs are decided keeping in mind the interest of both the borrower as well as the lender. The shorter the tenure of your loan, the bigger your EMI but lower your total interest payable, and vice versa. The interest rate of your loan is instrumental in deciding your EMI. To know the exact amount of EMI payable on your home loan, use a home loan EMI calculator.
What Is an EMI Calculator and How to Use It?
As the name suggests, the home loan EMI calculator helps a borrower calculate the exact amount of EMIs due per month. The calculator also shows a break up of how much are borrowers are paying towards principal repayment and how much towards interest payment. You need to input three following amounts to arrive at an EMI rate.
- Principal amount
- Interest amount
- Loan tenure
A home loan calculator interface is user-friendly and generally consists of three slider bars. The first slider can be adjusted left or right to choose the amount of loan needed. Potential borrowers can also input the exact amount of loan they require in a box and the slider will adjust itself automatically.
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Use the second slider bar to lock in the loan tenure or input it manually for the slider to adjust automatically. After this, adjust the third slider to input the rate of interest. Make sure that you input the rate of interest to the last decimal point. After inputting all three amounts correctly, double-check them. This will show you the consolidated monthly EMI.
Benefits of Home Loan EMI Calculator
These calculators are reliable and can help you plan your finances better. The calculator sliders give potential borrowers the flexibility to generate countless permutations and combinations that can help them arrive at an optimized EMI figure. You can see the exact amounts due if you elongate or reduce the tenure of your loan or increase or decrease your EMI sum. This can help borrowers plan on repaying their installments at the pace of their choice. The results shown by the calculator can help them decide to take a longer-tenured loan if they do not wish to cut down on their lifestyle expenses. They can also choose a loan with higher EMI payments, which can shorten the repayment duration if they are willing to cut back on their expenses.
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Figure out your home loan eligibility by using the free home loan calculator or home loan EMI calculator provided by Tata Capital. We also provide home loans at competitive home loan interest rates. Turn to us for all your housing finance needs and avail of home loan tax benefits. Our EMI calculator for home loan requires you to input the aforementioned three amounts to reliably calculate the outcome.