How You Can Use a Home Loan EMI Calculator to Your Advantage

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Home loans today are highly customizable and can be tailored to meet your needs with precision – be it the size of the home loan sanction, the repayment tenor, or flexible payment options, amongst other things. Lenders now give borrowers the option to pick and put together a home loan deal that is best suited to their needs and complements their family finances well.

However, it is imperative that borrowers aim to select their home loan amount that is suited to their home-buying wants and financial capacity. While home loans afford us the ability to stretch our immediate home-buying budget and repay the amount to the lender in parts, repaying an inordinately large amount can skew your financial stability in the long run. This stands especially true, as home loans offer a repayment tenor that can stretch up to 30 years – which is a comfortable timeline but also a longer duration to be repaying fixed EMIs. This concern is why borrowers are advised to request a home loan sum that is in proportion to their finances and repayment capacity, so they can avoid making the repayment of their home loan a crushing burden.

The question is, how does one do that? Of course, individuals gearing up to apply for a housing loan are expected to know their money matters inside out and have a tentative idea of how much their repayment capacity is allowed to stretch, but they cannot rely on manual calculations and guesswork alone. And here is where one can benefit immensely by using a home loan EMI calculator to their advantage.

Home loan EMI calculators are online calculator tools, easily available for all to use, developed, and offered by various financial institutes and lenders. The tool is free-to-use and is open for multiple entries without any caps. As the name suggests, the tool helps one arrive at the home loan EMI amount they stand to pay, calculated based on the home loan amount, repayment tenor, and home loan interest the user chooses.

What this means is that you can calculate your potential home loan EMIs under various permutations and combinations till you arrive at a satisfactory EMI amount – suited to your repayment budget. The tool is also exceptionally easy to navigate, and despite separate lenders developing their own tools, the calculators retain their basic structure. Here is how to use a commonly found home loan calculator tool online:

  • Adjust the first slider to select the home loan amount you wish to borrow
  • Adjust the second slider to select the home loan repayment tenor you prefer
  • Adjust the last slider to select the home loan interest rate you’re willing to borrow the loan against

Your results, the home loan EMI amount will be calculated considering all three factors. This allows you to see how feasible your long-term EMIs can be, given your current home loan preferences. You can continue to calculate various EMI amounts upon adjusting any one or all parameters of the calculation.

Now that you understand how to access and use the EMI calculator, let us consider some other equally helpful benefits of the calculator, too, that lie at your perusal.

  • Easy Calculations: One of the significant benefits of using a home loan EMI calculator is its exceptional ease of calculating the right EMI amount without relying on complex manual calculations. This can lighten up your research load before you start applying for home loans. 
  • Accurate Results: Complex manual EMI calculations can often have a proclivity towards errors that can give you incorrect results and mislead you in your home loan preparations. The EMI calculator functions on the same EMI calculation formula, but its digital functionality ensures there is nearly zero room for errors.
  • Market Research: Home loans are a long-term commitment, and the market is filled with lenders competing to give you the best offer – so how do you decide which lender’s deal is best suited to your interests? Consider the various terms lenders offer you and insert them into the calculator to calculate not just the best EMI for you but also to compare the interest rates, and tenors’ lenders are willing to offer to you.

With the home loan EMI calculator tool being easily accessible and usable for all, it makes the process of readying your home loan application considerably easier, thereby minimizing the chances of thwarted home loan expectations and application rejections.



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