Property rates are
escalating continuously. The amount of money one spent in the 1950s to buy a
property is less than the amount of money paid towards repaying home loan EMIs
today. Depending upon the area and the size of the property you buy, your home loan EMI can
effectively put a massive dent in your monthly expenses. As such, it is vital
to be aware of the actual EMI payable against a home loan before you apply for
one. Here is where a home loan EMI calculator comes into play.
The
loan EMI calculator explained
An online, calculation
tool, the loan EMI calculator, as the term suggests, is a unique calculator
that helps you calculate the exact EMI payable against the principal loan
amount loaned to you. The calculator uses data such as the principal amount
loaned, the interest rate levied by your lender and the tenure of the loan, to
calculate your monthly EMI amount. The online home
loan EMI calculator also helps you understand the total cost of the
loan – from all the charges involved in processing to disbursing it, to the
actual amount paid against the principal amount borrowed.
Availability
of the calculator
The Indian bank home loan
EMI calculator is a tool you can easily find on the internet. You can find a
generic EMI calculator by conducting a simple Google search on the internet.
You may also find different variations of this calculator in the form of mobile
applications, on the App stores on your Android Google Play and Apple iOS
stores. However, the best place where you can find this calculator is on the
website of your chosen lender. Using the calculator on the lender's website
allows you to calculate the EMI accurately since you would have all the
essential information on hand – the minimum interest rate offered, the maximum
loan tenure, the minimum and maximum principal loan amount provided, etc.
Types
of EMI calculators and how to use it
There are two types of home
loan EMI calculator in India – the basic calculator and the advanced EMI
calculator.
In the basic calculator,
you only input values such as the principal amount you need, the interest rate
you can afford and the tenure in which you would like the repay the loan. Once
you enter these figures, you need to click on enter to find out the EMI payable
against the values entered. If the EMI amount is out of your budget, you can
click on reset and enter new values – by adjusting the interest rates and
tenures, until you arrive at a budget-friendly EMI amount.
The advanced home loan
EMI calculator, on the other hand, prompts you to enter several additional
details. You must provide details of your monthly income, the cost of the loan
(processing, stamp duty, etc.), the homeowner expenses, (property tax, home
insurance, monthly maintenance charges, etc.) prepayment charges, down payment,
etc., in this calculator. It makes you consider all aspects of the loan and not
just the principal amount, interest and tenure of repayment. However, you may
not find the advanced EMI calculator on lender websites and may need to find
one on the internet, after zeroing-in on possible lenders.
Final
word: The online home loan EMI calculator is indeed a
useful tool you must use before applying for a loan. This calculator not only
helps you understand the cost of the loan and the EMI payable but also enables
you to adjust your monthly budget, after EMI deduction. Moreover, it is highly
accurate and prepares you for the loan even before the lender can sanction it.
