Have you finally decided to become a homeowner? Well, that’s a milestone almost every person dreams of achieving in life. However, as exciting as this endeavour sounds, it is equally valid to say that purchasing a home with a single payment is quite strenuous for many. But this long-term financial goal is made possible with the help of home loans at competitive home loan interest rates.
Now, a housing loan is made up of two components viz. principal and interest, collectively to be paid in Equal Monthly Instalments or EMIs. The EMI number can be calculated with the help of a simple online home loan calculator such as the home loan EMI calculator. A home loan EMI calculator allows you to try different permutations and combinations until you reach an optimal EMI figure. The simple formula used to calculate EMI payments in correspondence with loan duration is given below.
EMI = Principal Amount + Interest Payable on Loan
Always remember that the shorter the tenure of your loan, the bigger your EMI. However, a bigger EMI means you pay lower interest on the total loan.
How to Use an EMI Calculator?
A home loan EMI calculator aids prospective home loan borrowers in calculating the exact amount of EMI due per month. This interactive calculator also displays a break up of how much the borrower will need to pay towards principal repayment and how much towards interest payment. A home loan calculator requires you to input the following three values –
· Principal amount
· Interest amount
· Loan tenure
Benefits of a Home Loan Calculator
A home loan EMI calculator helps you plan your finances better by giving you an interactive platform to optimise your monthly instalments.
All you need to do is input the relevant information – principal loan amount, rate of interest, and loan tenure – in their respective slots and the calculator will automatically display the home loan EMI figure. You have the flexibility to generate countless permutations and combinations that help you arrive at the right EMI figure.
You also have the flexibility to increase or decrease your tenure. This advantage can help you repay your instalment at a comfortable pace.
The results displayed by the calculator can help you take a call on whether you want a home loan with a long tenure or a short tenure. If you can pay higher EMIs, taking a short-tenured loan makes more sense as it reduces your overall rate of interest. Alternatively, if you wish to pay lesser EMI and not cut back on your lifestyle expenses, then take a housing loan with a longer tenure. Doing this will reduce your EMI but increase your overall rate of interest.
Over to You
So you see, meeting the home loan eligibility criteria is not enough. It is also essential to know in advance the monthly EMI amount to manage your finances for easy home loan repayment. Tata Capital’s home loan EMI calculator is a useful online tool wherein you can input the relevant details with the help of sliders or via manual entry; do this, and the calculator will let you determine your EMI amount within seconds!
Haven’t applied for a home loan with us yet? Then, apply now! We offer home loans starting at just 6.90%. Avail housing finance from Rs. 2 lakhs up to Rs. 5 crores and enjoy flexible repayment options. Moreover, the experts at Tata Capital can help you with your loan application process with minimal paperwork. Get in touch with us today for all your housing finance needs.