Benefits of Using EMI Calculator Before Applying for a Home Loan

Benefits of Using EMI Calculator before Applying for a Home Loan

Buying your own home, apart from being a representation of achievement, gives you a sense of security. It has been observed that property rates are always on the rise and could be out of bounds for most of our budgets.

It is one of the main reasons why most Indian home buyers choose to avail of Home Loans to purchase their dream home so that the budget is not a hindrance to achieving this milestone. Therefore, you need to be prudent in selecting Home Loan providers.

While essential factors such as the interest rate, loan tenure, flexibility, documentation, etc., play a significant role, it would be pertinent to use a Home Loan calculator to calculate the EMI (Equated Monthly Installments) along with the interest rate before finalising the deal.

What Is Home Loan EMI Calculator?

The Home Loan EMI calculator is one kind of free online tool that most companies offering Home Loans provide on their official websites to assist individuals in improved home loan calculations.

This tool essentially computes your monthly Home Loan EMI amount based on the primary inputs entered by you in the calculator. It requires the following information from your end:

⮚ Anticipated loan sum (Home Loan principal amount)

⮚ Tenure or the amount of time allotted for loan repayment, which could go a maximum of up to 30 years

⮚ The interest rate levied on the borrowed amount is based on the trending lender rates.

Benefits of Home Loan EMI Calculator

The Home Loan EMI calculator has several advantages. This convenient online tool helps you plan your Home Loan-related expenses with ease. Here are some of the benefits of the EMI calculator:

1. Provides Accurate Results

While planning for a Home Loan, you need not feel bogged down by complex equations and calculations. You can take advantage of digital calculations that smoothen the process by using an EMI calculator that uses your inputs and calculates the EMI amount payable.

Some EMI calculators even provide the option of adjusting the variables using sliders, showing how the variations in different rates of interest or tenure can impact your EMI.

You can use the EMI calculator repeatedly to try out various combinations till you find the perfect one that fits your repayment budget and capacity. This minimises your chances of Home Loan rejection and prevents your credit score from being negatively impacted by lender rejection.

2. Simpler and Faster As Compared to Using a Manual Calculator

Manual calculations or using excel sheets for your Home Loan calculations can be cumbersome and tedious. However, with just a click of the mouse, the Home Loan EMI calculator tool provides a speedy and hassle-free user experience.

All you need is internet connectivity. Then, go online and use the tool without additional registration formalities or credentials.

3. No Compromise on Privacy and Security

You are not required to reveal/submit any personal data while using the free online Home Loan calculator. Hence, you don’t have to worry about security issues as you can be assured that it is a safe and secure tool.

4. Aids in Financial Planning

This tool calculates the EMI payable, giving you an added advantage of proactively being aware of your repayment obligation even before applying for your Home Loan.

This calculation can help you plan your repayment schedule based on your Home Loan requirements and evaluates if you can genuinely repay your Home Loan requirement comfortably without risking your other investments.

Furthermore, knowing the expected EMI amount helps allocate your income and expenses accordingly and determine your savings level. This is pivotal from a financial planning perspective.

5. Allows Comparison of Different Offers from Lenders

The EMI calculator allows the comparison of Home Loans from different lenders. You must input the rates of interest and tenures offered by other lenders and compare the resulting EMIs to help you understand which deal suits your financial needs the most. It simplifies the entire selection process and helps users make the right choice.

Conclusion

Taking a Home Loan is a big responsibility, so due diligence is necessary before signing on the dotted line. Providing utmost transparency to the customer, and enabling him to make a comprehensive decision, the Home Loan EMI calculator is a requisite tool for all prospective borrowers. So, go ahead, obtain a home loan and prepare to embark on your journey to your new home!