A home loan is a large financial commitment that typically spans decades; therefore, borrowers are advised to undertake thorough financial planning before purchasing a bond 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 for free on most lenders’ websites. We can take the opportunity to provide a provisional EMI plan that corresponds to the amount of the desired loan. Not only will this give you a near-real idea of the feasibility of your home loan application, but it will also minimize the risk of human error.
Borrowers can also use the EMI Calculator to try out various permutations and combinations of loan amount and term to reach an EMI that works best for them. To put it simply, a EMI Home Loan Calculator allows an individual to set a repayment schedule and plan their loan journey accordingly.
If you’re 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.
It delivers results in seconds
Calculating EMIs manually is not only an error-prone task, but it also takes time and effort. Sit down to manually calculate your EMIs and you’re sure to be busy for at least the next few hours. Use an online EMI calculator for fast, error-free calculations. The calculator will give you results in seconds. Plus, given the speed of the calculator, you can try as many permutations and combinations as you like to arrive at an EMI that works best for you.
It allows you to plan your mortgage journey
One of the biggest benefits of a home loan EMI calculator is that it helps you prepare for your home loan. Once you have entered your desired loan amount and preferred term, the EMI Calculator will give you your monthly EMIs. Knowing your EMI ahead of time will help you understand if you can afford the loan amount you want.
Besides calculating monthly EMIs, the calculator will also give you a breakdown of your loan value. It will tell you what percentage of the EMI will contribute to principal repayment, and what percentage will contribute to interest repayment and how that will change depending on tenor.
Use a home loan EMI calculator to make sure you only borrow what you can afford.
You can use it to schedule repayments
If you want to close your loan as soon as possible, the only way out is to make partial prepayments. If you have extra funds available during the term of the loan, opt for partial prepayment to reduce the outstanding amount of the loan. Use a home loan calculator to understand how a partial repayment affects the term of the loan.
Use it to choose the best offer for you
If you are considering taking out a loan, you need to 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 each 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 about which loan offer is right for you.
Although 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 partial repayments.
Borrowers should also be aware that there is no limit to the number of times an individual can make partial prepayments. Any partial prepayments you make will be used to cover the full amount of the outstanding home loan. Since partial prepayments will reduce your loan amount, net interest payable will also decrease after partial prepayments.
The amount paid eventually reduces the outstanding amount of the home loan, thereby reducing the net interest payable on the home loan. In such a case, you can use the Bajaj Housing Finance Prepayment Calculator for estimated EMI and duration savings.
To use a home loan EMI calculator, follow these simple steps:
• Go to your lender’s website and access the home loan EMI calculator
• Indicate your desired loan amount, the term you think will work best for you, and the interest rate you think you will be offered
• Click “Calculate” and the calculator will instantly display your loan’s EMIs, total interest payable over the life of the loan, and the total payment you will make to your lender.
The EMI Home Loan Calculator is one of the most handy tools 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 at 6.75%* per annum for individuals and salaried professionals. Additionally, the company offers an online account management service to speed up their home loan planning process.
This content is distributed by Bajaj Housing Finance. No journalists are involved in the creation of this content.