Financial planning is an important aspect that can never be neglected. Proper financial planning will never let you face any financial crunch. Purchasing a home loan is one of the biggest financial obligations. So before availing of a home loan, proper financial planning is mandatory so that you are able to repay your loan. Proper financial planning means planning your finances in a way that enables you to repay the borrowed amount without any problem; this further means that you are able to pay the EMI on the specified time without any default and, at the same time, not letting your household budget get affected. Earlier financial planning prior to availing of a loan was a difficult task, but now the home EMI calculator has made it an easier task.
What is Home Loan EMI Calculator?
Home EMI calculator is an online financial tool that will help you to know the amount that you will have to pay as EMI for your home loan. This facility will be of great help in your financial planning as you get to know the future EMI. The calculator also lets you know the interest rate charged on your home loan. All you need to do is just enter the tenure, principal amount, and interest rate then the home loan EMI calculator will calculate and give you your EMI amount. It is very simple and easy to use yet very beneficial to the borrowers.
How does a home loan EMI calculator help you with proper financial planning?
Whenever you purchase a home loan, you need to return it to the bank by paying in the form of an EMI. This EMI may be needed to pay for longer years, like 20 to 30 years or maybe more. Suppose you are borrowing a home loan of Rs. 50 lakhs, then you will be returning almost Rs. 90 lakhs, which turns up to be around Rs. 40,000 of EMI every month, which depends on your tenure and interest rate. Paying these EMIs every month has a greater impact on your finances.
Earlier, knowing how much EMI you would have to pay for your home loan in advance was a tough task. The only option to know was by talking with the representatives of the banks. But now, online EMI calculator has made the task easy. It is available on almost every lender’s website. This calculator will let you know the EMI that you have to pay for the loan in advance.
Being aware of this information will help you with your monthly budget planning more efficiently, and you can also decide whether you really need a home loan or not. It will escape you from those awkward moments and let you know the cost of your home loan from the comfort of your home. Thus, with this service, you will know whether you will be able you pay the EMI with your current income or not. Suppose you take a loan and are not able to repay it; then it can be a disaster.
Other benefits of home loan EMI calculator for financial planning
In addition to the above benefit, the home loan EMI calculator online has the following other benefits:
- You can adjust your future expenses in advance: When you know in advance how much money you will have to pay for EMI, then you can adjust your expenses depending on that. As there are certain expenses without which you can do. Thus, proactive thinking will help you to save money in many ways.
- You can choose the right lender for you: There are many lenders in the market providing varied home loan EMI options for the same loan amount and even the same tenure. Even the smallest difference in the interest rate has a greater effect on your finance in the longer run. Every lender now has its own home loan EMI calculator on its website, so you can look for different options before you select the right one.
- A house loan EMI calculator assists you in selecting the right home loan lender: Just because you are purchasing a loan doesn’t mean you have to go overboard. It is just that you need to prove that you are capable of paying the home loan EMI. With the help of the house EMI calculator, you will know how much EMI you need to pay for the amount that you borrow. Based on that, if you find paying that much EMI is not feasible for you, you can reduce your loan amount and select the amount to borrow on which paying the EMI is feasible for your pocket. This will reduce the burden of the housing loan EMI to a greater extent.
- You can select the right tenure for your home loan: Choosing the right tenure period for your loan is an important factor in deciding your EMI. the longer tenure results in less EMI, and shorter tenure results in higher EMI. The home loan eligibility calculator online is very much helpful in deciding the tenure period for your home loan based on your convenience.
Your home loan EMI depends on the following factors
- The principal amount of the loan
- The tenure period of the loan
- The interest rate set by the lender
How to use the home loan EMI calculator?
First of all, you need to visit the website of the lender you select. There you get an option to select the calculator.
Next, select the loan amount that you want to get approved, the tenure period for the loan, and the interest rate offered. Once you enter these details, you get the EMI that you need to pay, the total interest payable and the total payment, i.e. the principal amount + the interest.
The biggest advantage of a home EMI calculator is that it allows you to play around with the figures without any interference, and there is no obligation. Just by visiting the website of the lender, you can calculate the EMI and borrow the amount whenever you wish to. Thus, choose the best lender for you.