A home loan is a big financial commitment that typically spans across decades; hence, borrowers are advised to undertake thorough financial planning before signing up for an obligation of this size. One of the easiest ways to plan your home loan journey is to use a Home Loan EMI Calculator. The calculator is a handy online tool available on most lenders' websites, free of cost. One can avail of it to forecast a tentative EMI plan that corresponds with their desired loan amount. Not only will this give you a near-real idea of how feasible your home loan ask is, but it will also minimise the risk of human errors.
Borrowers can also use the EMI Calculator to try various permutations and combinations of the loan amount and tenor to reach an EMI that works best for them. To put it simply, a home loan EMI calculator allows an individual to chalk out a repayment schedule and plan their loan journey accordingly.
If you are not convinced about using a home loan EMI calculator, read on. In this article, we share with you some of the benefits of using an online home loan EMI calculator.
One of the biggest advantages of a home loan EMI calculator is that it helps you prepare for your home loan. Once you input your desired loan amount and the preferred tenor, the EMI calculator will give you your monthly EMIs. Knowing your EMI in advance will allow you to understand whether you can afford the loan amount you want.
Other than calculating monthly EMIs, the calculator will also give you a breakup of your loan value. It will tell you what percentage of the EMI will contribute to the principal repayment, what percentage will contribute to the interest repayment and how this will change according to tenor.
Use a home loan EMI calculator to make sure you are borrowing only what you can afford.
One look at the formula given above will help you understand that calculating EMIs manually is not only a task that is prone to errors, but it also demands time and effort. Sit down to calculate your EMIs manually and you are sure to be busy for at least the next few hours. Use an online EMI calculator for quick and error-free calculations. The calculator will give you results within seconds. Further, given the calculator's speed, you can try as many permutations and combinations you like to arrive at an EMI that will work best for you.
If you want to close your loan as soon as possible, the only way out is part-prepayments. If you have extra funds during the loan tenor, opt for part-prepayment to reduce the loan outstanding. Use a home loan calculator to understand how a part-prepayment affects the loan tenor.
If you are planning to take a loan, you must talk to different lenders and see what they have to offer. Once you have all the offers in hand, use the home loan calculator to compare different loan offers. The calculator will give you the total cost of every loan offer as well as the EMI you must pay for each loan. Having this information with you will allow you to make the right decision regarding which loan offer would be the right choice for you.
The online home loan EMI calculator uses the same formula to calculate EMIs as mentioned above. Though the online home loan EMI calculator gives you a detailed overview of your home loan repayment plan, note that this schedule will change if you make part-prepayments.
Borrowers must also know that there is no limit on the number of times an individual can make part-prepayments. All part-prepayments that you will make will go towards covering the total outstanding home loan amount. Since part-prepayments will reduce your loan amount, the net payable interest will also decrease after part-prepayments.
The amount paid eventually reduces the outstanding home loan amount, reducing the net home loan interest payable. In such a case, you can use the Bajaj Housing Finance Part-Payment Calculator for an estimate of the EMI and tenor savings.
To use a home loan EMI calculator, use these simple steps:
The home loan EMI calculator is one of the handiest tools, which you can use to your best advantage. If you are looking to apply for a home loan, consider choosing Bajaj Housing Finance as your home loan partner. The HFC, a wholly-owned subsidiary of Bajaj Finance Limited, now offers home loans at interest rates starting as low as 6.65%* p.a. for salaried individuals and professionals. Further, the Company offers an online account management service to expedite its home loan planning process.
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