Different people take home loans for reasons that range from buying a house without the burden of cost to utilizing the property as an investment tool for the real estate market. It’s smart to take a home loan, provided that the lender deems you to be qualified. However, how much will you be paying monthly to close the loan?
Regardless of why you need a home loan, it’s always wise to calculate your equated monthly instalment (EMI) amount before applying. You don’t need pen and paper to do this because there’s an exciting financial tool to help with that. Using an online home loan EMI calculator simplifies the process while providing accurate data instantly.
Read on to find out what an online home loan EMI calculator is and the benefits of using one.
Online Home Loan EMI Calculator: An Overview
EMI is an acronym for “Equated Monthly Instalment” that describes the amount you must pay a financial institution for taking a loan. Based on the loan’s terms and conditions, you must make payments monthly till there’s no balance. To make decisions about the loan, particularly the amount you desire, we recommend an online calculator.
An online home loan EMI calculator is a financial tool that enables you to learn the amount needed to repay a loan. The EMI accounts for the principal amount and the interest charged by the lender. With the calculator’s data, you can get a better understanding of your options.
There is a formula for calculating EMI and unless you’re pretty good at math, you might have a hard time getting the right results. Using an online EMI calculator promises you a fully automated process. Simply input the required information and you’ll know what to pay each month as well as how to create a convenient payment schedule.
Before you take a housing loan, calculating your EMI first helps land the best deal.
What You Gain from Using an Online Home Loan EMI Calculator
Below is a list of the perks you stand to enjoy by calculating the EMI of your home loan online in advance and some reasons why you must use an EMI online calculator to calculate your EMIs.
- It Helps You Determine What You Can Afford
By calculating your home loan EMI in advance, you’ll easily decide whether or not you can afford the monthly instalments. Many people take home loans without checking if the loan will fit into their budget, but that doesn’t have to be you.
With an online home loan EMI calculator, you can continue to modify the details supplied until you arrive at a comfortable figure.
- It is Fast, Convenient, and Accurate
Calculating your EMIs manually not only exposes you to errors but is complex and time-consuming. Switching to an online option allows you to perform the same task but in a short period.
- You Make Better Informed Financial Plans
While planning prepayments, it helps to work with a defined EMI value. With that valuable information, you can make prepayments to close your loan before the tenor. You can also avoid spending too much on repaying the loan while having little to nothing left for other financial commitments.
Note that repaying the entire loan amount fast increases your credit score and improves your credit history.
How to Calculate Your Home Loan EMI Using an Online Calculator
Before using the calculator, ensure that you have considered factors, such as your income, monthly budget, and current financial obligations. Upon opening the online home loan EMI calculator, you’ll be required to input the following information:
- Principal loan amount
- Interest rate
Once you provide these details, your EMI, the total interest payable, and the total amount will appear on the screen. For fast and detailed information about your home loan EMIs, consider using the online calculator Bajaj Housing Finance Limited provides.
Calculate Your Home Loan EMI with Bajaj Housing Finance
Bajaj Housing Finance Limited is an excellent choice for your home loan needs and other financial solutions such as a loan against property and a balance transfer. Taking a home loan from the HFC not only guarantees you a high loan amount, long tenor, and flexible repayment options, but you can also gain accurate information about your loan and EMIs by using our home loan EMI calculator. Click here to use their online calculator and check your EMI.