Why are Home Loan Calculators Necessary?

| April 4, 2018

Home LoanManually computing interest rates and understanding how the principal amount as well as the repayment tenor affects your Home Loan can be a task. For quicker and error-free results, rely on a Home Loan EMI calculator.

This calculator is easy to use, gives you accurate results in seconds, and helps you compare lenders with different interest rates too. However, using a Home Loan calculator is less about easy mathematics, and more about understanding the affordability of your chosen Home Loan.

Take a look at why using a Home Loan EMI calculator is necessary before applying for a Home Loan.

Gives you accurate solutions

When it comes to managing your finances, you want error-free calculations that will help you plan better and more efficiently.

While manual calculations of your Home Loan EMI are cumbersome and may lead to mistakes, online Home Loan EMI calculators are both accurate and user-friendly. The right calculation can help you in many ways:

  • Picking the right principal amount for your Home Loan
  • Choosing the most conducive repayment tenor
  • Checking potential EMI amounts you will pay

All this can help you do the necessary financial planning to ensure that your current income supports your home purchase, and that you can service your Home Loan comfortably.

To use the Home Loan EMI calculator, all you need to do is toggle the sliders or input the figures directly into the three sections: principal, tenor and interest rate. Use an online Home Loan EMI Calculator to experience the convenience.

Saves your time with quick results

These days, lenders often have favourable deals on Home Loans online or run seasonal offers that may ease your borrowing experience.

Bajaj Finserv Home Loans for example, have a 3-EMI holiday on Home Loans, which you may want to take advantage of to ease the stress of repayment during financially lean months.

To make the most of such offers, you need to be quick about deciding on the right Home Loan. The EMI calculator can give you the needed calculations instantly.

You can thus make a timely decision with the assistance of the Home Loan EMI calculator. Rather than using the EMI formula, you can feed in the numbers and get your prospective EMI in seconds.

Offers you a chance to get a clear picture of your finances

Apart from being handy in assisting you with your Home Loan EMI calculation, an EMI calculator also guides you in thinking clearly about your repayment capacity.

By using different amounts for the principal, by adjusting the tenor and keeping the interest constant, you will be able to find an EMI amount or range that you will be comfortable paying every month.

Simply compare this amount with your total income (from work and other sources like rental income, investment earnings, etc.) and choose a range that works for you.

When you finally receive the interest rate from your chosen lender, you will be able to compute whether it works for you or not very quickly.

Helps you compare loans offered by various lenders

The EMI calculator can be an eye-opener when it comes to comparing different lenders’ Home Loan interest rates. By using it, you can see how a difference of just half a percentage can change your EMI amount.

Use it to pick the lender with the most competitive interest rate to be able to repay your Home Loan comfortably. However, keep in mind that there are other costs like processing fees, secure fees, EMI bounce charges, etc., that lenders also charge. Do take them into account when you finally decide on a lender.

Taking calculated steps when it comes to choosing your Home Loan is essential in order to ease your borrowing experience.

A Home Loan EMI calculator allows you to think through every aspect of your loan, and helps you make a more informed decision. You can use it in conjunction with other calculator like the Home Loan eligibility calculator, balance transfer calculator, and part prepayment calculator to plan out your finances.  

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Category: Housing

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  1. Nice article about Home Loan. I like the way you are telling clear information about Home Loan. Availing a Home loan is once in a lifetime decision for many of us. So, choosing the right home loan product becomes much more important to avoid any type of surprises later. I strongly recommend every home loan potential customer to read this article for having better clarity of their loan product.