Purchasing a house involves a significant amount of money. So, few people can purchase one outright with their funds and most borrowers need to avail of a home loan to buy their dream house. A home loan in India provides much-needed capital to buy a long-term asset and offers tax benefits on home loan interest payments and home loan principal repayment.
Purchasing a property is one of the top financial goals for many of us. However, because of the high cost of real estate, it can become challenging for borrowers to purchase a house with their own money. Therefore, a home loan in India is a decent choice for many individuals to purchase their dream home.
However, availing of a housing loan necessitates a significant shift in the spending strategy to clear EMIs. As a result, the housing loan in India must be both appropriate and affordable for you. This is where a house loan calculator comes into the picture: it helps figure out how much EMIs you’d have to pay every month to repay your existing home loan in a particular amount of time.
How to Optimize Your Home Loan Application with the Home Loan EMI Calculator?
The home loan EMI calculator essentially calculates the tentative housing loan EMI amount based on the primary information inserted by a user, which includes:
1. Your desired home loan sum or the home loan principal amount
2. Your preferred repayment tenor, which can go up to 20 years or in some cases, up to 30 years
3. Your choice of home loan interest rate based on trending rates
Using the variables, the tool helps calculate the EMI payable, showing your home loan repayment obligation before applying for your housing loan in India. This pre-emptive calculation can help plan your home loan repayment schedule based on your loan needs and assess if your home loan requirements can be repaid comfortably, without jeopardizing other finances.
What’s more, you can use the home loan EMI calculator several times to try out several scenarios until you get the combination that fits your home loan repayment budget and capacity.
Major benefits
A house loan calculator is an online tool that helps calculate housing loan EMI. The professional yet user-friendly design of the online calculator tools empowers you to easily toggle between your chosen housing loan interest rate, loan amount, and home loan tenor, providing you with repayment options based on your preference. Here are some of the major benefits of the house loan calculator.
It Helps Pick the Right Lender and the Ideal Home Loan Amount
With several home loan lenders offering enticing home loan deals, it becomes challenging to choose the right one. In this case, you can use the EMI calculator to analyze the cost of various housing loans and decide which offers the best value for money.
Additionally, it is also a good idea to avail of a loan amount that you can comfortably repay without putting strain on the finances. Hence, you can use the home loan EMI calculator to get a better idea of the housing loan amount you can easily afford. This will make home loan repayment easier and reduce the chances of defaults.
It Helps Choose the Most Appropriate Loan Tenor
The home loan tenor is crucial when it comes to determining the monthly installment. Your house loan EMIs are more likely to be lower if you opt for a longer tenor, whereas a comparatively shorter term is likely to result in a larger EMI. Hence, select a loan term that makes EMIs manageable based on your spending and income. You can find a suitable loan tenor with a housing loan EMI calculator.
It Simplifies Planning for Prepayment of the Loan
Having a fair idea about the expected EMI outgo makes planning for the housing loan prepayment smooth. This can help reduce your interest and help augment the repayment of your debts. For instance, if you’re aware of your EMIs, you may easily arrange for part prepayments and plan the timing of your investments.
It Is Easy to Use
There are no complicated calculations involved when you are using a house loan calculator. All you have to do is feed in the home loan calculator the principal amount, housing loan interest rate, and home loan term, and within seconds, you will receive the accurate computation of your housing loan EMI.
The house loan calculator is one of the most valuable tools, which makes the process of availing of and repaying a home loan both simple and convenient. So, calculate your home loan EMI and get a home loan today to buy the house of your dreams. However, do your homework on home loan lenders before availing of a home loan in India to avoid inconveniences later.
The Final Word
The advantages of using a house loan calculator are plenty, and this is precisely why home loan aspirants are always advised to use it before availing their home loan application. It multiplies the chances of approval with lucrative terms and conditions, giving wings to your dream of owning your dream home.
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