Purchasing your dream home is one of the greatest milestones in life. It’s your memories and happiness that is being associated with it. Before taking a home you check all the aspects such as area and locality, traveling to offices, best of amenities like schools, hospitals, and shopping malls being available right next to your house, etc. However, it's difficult to own a home with the handful of savings you have. For this, people avail home loan from banks or non-banking finance companies. The typical tenure of your house loan would be around 20 to 25 years. Often, when people are not aware of the loan amount they end up compromising on the house that they buy. Home loan EMI calculators have come as a blessing for those individuals who need to do the tedious and complex calculation on their financial needs. These are simple calculators available on banks, finance companies and aggregator websites that will help you do tedious and complex calculations in an easy and hassle-free manner.
By using the extremely flexible and easy-to-use calculators, you can find out the maximum loan amount you can avail, the interest rates applicable, loan tenure, exact monthly installments, etc.
The money that you repay towards the loan is cleared in the form of EMIs or Equated Monthly Installments which is a fixed amount of money that borrower pay's every month on a predetermined specific date. You can either drop a cheque at the bank/NBFC else keep an ECS mandate for the amount to be debited from your account. It ensures a systematic way of repaying your loan within the fixed tenure period that you choose. When you start making the repayments, you are paying your principal amount along with interest rates. An Emi Calculator for Home Loan helps you to calculate the principal amount and the interest amount due on your housing loan.
These are digital ways to calculate the amount due on your housing loan. It requires you to fill certain details in order to generate the exact amount of your EMI due. There are four important details that you need to calculate your EMI i.e the principal amount, interest rates, loan tenure, and processing fee. Each lender has a different computation method based on which results will be generated. You should be aware of these methods. It will include your daily reducing balance, monthly reducing balance, and annual reducing balance. A mathematical formula is applied to know the monthly installment costs.
Using a home loan EMI calculator helps to you know if you can afford the home loan at the particular interest rates offered by the bank or the financial institutions. You will know how much exactly is due, the amount left to be paid, and each month until the completion of the loan tenure.
The best part is it makes your calculations quite exciting and simple. You start dealing with your loan structure, repayments, and get better transparency of your loan amount you have availed. You stay prepared to cut-down the unwanted expenses and save towards the monthly installments. It helps you get an overall idea of the total amount of money incurred on your housing loan.