Making the decision of borrowing a home loan involves a lot of stages. You have to qualify for it, check to see if you’re ready with the down payment, select the right property, apply and submit documents, and prepare to pay the stamp duty and registration charges. However, one of the most important steps is calculating your home loan EMIs.These EMIs become your monthly instalment towards repayment, and may be something you will be paying for the next decade or two. So, figuring out the amount is the key to ensuring that your future loan experience is convenient and easy on your pocket. You can calculate your EMIs easily using the handy online home loan EMI calculator.
This calculator helps you compute how the housing loan interest rate, principal and tenor impact the EMIs of your home loan. This will help you predict the affordability of your home loan, based on which you can take a series of important decisions.
Take a look at how the EMI calculator helps you predict your future and take the right steps that will simplify your borrowing experience.
- Helps you create a monthly expenditure budget
Based on the results of the home loan interest calculator, you can craft a monthly expenditure budget to ensure you have enough money to pay the EMIs on time. Not only does this help you avoid missing the EMI deadline and incurring penal interest and EMI bounce charges, but it also helps you take smart financial decisions regarding your investments, your future job roles, and other sources of income. For example, you can start an FD that provides you monthly gains that are equivalent to your EMIs or invest money in mutual funds that will give you enough returns in 3 years to make a part-prepayment towards your home loan.
- Helps you select the right loan amount
If you see that even on the lowest interest and longest tenor, your EMIs are not suiting your budget, you can reduce your loan’s principal amount. Then, you can begin searching for homes that cost less, which you can afford to buy without feeling stressed or hassled. Conversely, you can consider taking a home loan with a co-applicant as the co-signor of the property to share the repayment with you like your sister or spouse.
- Helps you select the right tenor
The ideal repayment duration can impact your EMIs and total interest in a big way. For example, a shorter tenor increases your EMIs but reduces the overall interest you pay. So, you can choose the tenor that gives you EMIs that fit your income perfectly. This will make repaying your loan easier and more convenient.
These are the three ways in which using the home loan EMI calculator helps. However, to get a holistic idea of all the expenses of the home purchase, do keep in mind the other fees and charges related to your home apart from the down payment, stamp duty and registration costs. These fees include processing fees and secure fees, EMI bounce charges, penal interest, prepayment and foreclosure charges, loan statement charges and more that are levied by your lender. Bajaj Finserv, for examples, offers Home Loan at nominal interest as well as low related charges for an amount of up to Rs.3.5 crore.
So, choose a lender who shares these charges with you up-front and keeps them to a minimum to enjoy a more affordable loan. Apart from that, it is also important to check your lender’s home loan eligibility criteria. This can help you qualify quicker for the loan and maximise your chances of approval.
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