Owning your home is a dream for many. It provides a sense of security as well as success to the owner. However, there has been a constant increase in the value of real estate these days. This makes purchasing a house in one single payment nearly impossible for most individuals. To facilitate the purchase, a home loan can be borrowed from a financial institution.
Home loans refer to the total amount of money that is borrowed for the sole purpose of buying a new property. It is one of the most common ways to finance and gather funds to purchase your house. Since it’s a long-term decision, there are many factors such as interest, repayment, and the budget that must be kept in mind while taking such loans. To simplify this process, the borrower can make use of a home loan EMI calculator. So, let’s get you started on what the calculator is and how it is beneficial for every individual taking a home loan.
What is a Home Loan EMI Calculator?
Advantages of Calculating EMI Payments Before Taking a Home Loan
Such a calculator is an effective tool used to calculate the loan installment amount or the equated monthly installment of the home loan. This acts as a financial planning tool for investors as well as home buyers. In this calculator, you need to enter the loan amount in rupees, the tenure in years and the interest rate in percentage. It then determines the value of EMI payments that the borrower needs to pay from time to time. Moreover, an adjustment in the above values is possible, which in turn determines revised EMI values.
There are numerous advantages of calculating EMI before taking home loans. These include choosing the correct tenure, loan management ability, comparison of loan offers, accuracy in results, and financial planning. These are explained below.
- Choosing the Correct Tenure
Tenure refers to the total duration for which the loan amount is taken. If the EMI amount is determined beforehand, the borrower can simply evaluate their monthly budget and choose the ideal tenure for repayment of the loan. Moreover, they can decide whether to pay a higher EMI and choose a shorter term or pay smaller EMIs and extend the loan period.
- Beneficial for Loan Management
Since a home loan involves long term planning and demands financial requirements, the customer must have proper budget management terms. While making EMI payments, the borrower may have surplus funds, enabling them to pay the entire loan amount early. In such a case, a home loan calculator will help the borrower to check the financials and see if prepayment of the remaining loan amount is possible before the term ends.
- Comparison of Loan Offers
A customer must always compare the loan amount and interest rate offered by different financial institutions. This can be done by determining the total cost incurred from the loan along with the EMI amount. This will help the borrower narrow down the options and select the financial institutions that best suit their needs.
- Accuracy in Results
There are always chances of error in manual calculations. However, using an online loan EMI calculator is a way to ensure that the borrower gets the exact amount that needs to be paid at regular intervals. Such accuracy helps the borrower to forecast the financial requirements and plan accordingly. Furthermore, the speed with which the calculation is done is very quick.
- Finance Planning
By determination of EMI, the borrower can be assured of timely repayments, which in turn help to steer clear of future financial obstacles. This is crucial as timely payments will ensure a good credit score, which will help the borrower take loans in the future. This whole process will ensure effective financial planning and management of resources.
With everything going digital, the whole process of loan application is entirely online. This, in turn, means that the applicant can apply for loans from the comfort of their home. While availing of home loans, the borrower must always check the history and background of the financial institutions from where the loan is availed. Now you can ease all your financial worries with Grihashakti’s home loans! It provides you with attractive interest rates and flexible repayment tenures that best suit your needs. With its home loan calculator for EMI, you can even get the correct value of the amounts you need to pay at regular intervals and ensure the best loan facilities.
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