EMIs or equivalent monthly installments are periodic monthly payments that the borrower makes for loan repayment of the borrowed amount. The EMI payment consists of the principal loan amount and accrued interest for the period. All types of loan repayments, such as personal, medical, real estate, etc., can be converted to EMI. The EMI Calculator is an easily accessible tool for accurately arriving at the monthly loan tranche figure to be repaid. This tool is mainly used before applying for a loan to decide on the best suitable offer that you can get from several banks and NBFC.
Many people who opt for a home loan are advised to choose EMIs as their repayment.
What are the benefits of using a home loan EMI calculator?
A home loan EMI calculator has proven to be very helpful. Some of the many advantages of an EMI calculator are as follows.
1. Decision on the amount to borrow
Using an EMI home loan calculator helps you decide the appropriate minimum amount to finance needs when repayment is also manageable and housing finance is also sufficient. Plus, the EMI Calculator helps you analyze and arrive at an amount that fits your monthly budget. Hence, it ensures that you make an informed decision about financing your home.
2. Schedule repayment
Calculating the EMI of your home loan with interest can help you plan repayment. Pre-calculation of EMIs will adequately advise you on which source of finance to opt for and how to budget for repayment of principal and interest.
3. Choose the most appropriate source
With EMI home loan calculators, you can make an informed decision on which source of finance would be best among current market offerings. Moreover, you can choose the best interest rate as well as a flexible repayment plan according to your budget if the EMI is calculated in advance according to the requirements of the loan.
4. Prepayment of planning
Planning for prepayments can help you reduce interest payments and pay off the home loan sooner. You can calculate this schedule and formulate a prepayment plan in advance through the EMI calculator.
5. Credit score
Using the EMI calculator and tracking monthly loan principal and interest amount payments can help you maintain a good credit score and good credit rating. Overall, this increases your creditworthiness and the bank may consider easing the mortgage offer during its term. It is further advantageous to apply for loans for financial support in the future.
6. Future borrowing
You can maintain your creditworthiness using the EMI calculator, making it easy to get any loan sanctioned in the future. Banks and NBFCs offer loans at a lower interest rate and flexible repayment term if your credit score is high.
7. Ease of use and accuracy
The EMI Home Loan Calculator is an easy to use tool and provides accurate results to arrive at the best possible option for loan repayment. Its automated EMI calculation feature is very user-friendly and can be used by anyone. The tool is available for free at no additional cost and provides fast and accurate results for decision making.
How does the EMI calculator work?
The EMI Calculator requires you to enter essential loan details in the bars. The details required are the principal amount of the loan, the term of the loan and the interest rate applied to the loan. The EMI calculation formula runs on the tool and produces a final installment figure that you will need to disburse per month for the home loan plan powered. You can change the principal amount, interest rate, and term combinations to check the most suitable EMI plan.
Today, the ease of access and availability of this tool allows many mortgage applicants to better plan their financing. The EMI Home Loan Calculator provides all the information they need to accurately budget and track all payments. Making the best choice from several home loan options available in the market is the most critical step, and the EMI Home Loan Calculator makes it easy to get an accurate and well-suited option.