Are looking to purchase a new home and avail of a home loan to get the required funds? If yes, then it would be wise to calculate the EMI (equated monthly installment) you must repay every month to the lender before you sign the documents. One of the best ways to compute the amount is to use online tools like the EMI calculator.
What is an EMI calculator?
A home loan is probably the most significant credit you may avail in your lifetime. And, since you will be repaying the amount in smaller instalments or EMIs, with the help of an online EMI calculator, you can know the exact amount you must repay beforehand.
The EMI calculator is a tool that allows you to compute the EMI based on the inputs you provide. The EMI tool also helps you know the exact details of the principal amount and the interest amount payable each month.
Benefits of using Home Loan EMI Calculator
Apart from helping you know the EMI payable every month, a home loan EMI calculator offers you a host of benefits, which are discussed below.
Helps you in better financial planning
Generally, the home loan repayment tenure goes up to 15-30 years. This means you must pay the EMI for the said duration. And to be able to pay the amount without default, you must plan your finances carefully. This is where the EMI calculator plays a critical role.
By knowing the EMI amount beforehand, you can prepare your budget and set aside a specific amount for the loan repayment. Thus, you need not face any legal hassles due to non-payment of the EMIs.
Also, by knowing the EMI amount in advance, you can make an informed borrowing decision, and adjust a loan amount and duration so that the EMI is affordable.
One of the most significant benefits of using an online EMI calculator for computing the home loan EMI amount is that it gives you accurate results every time you use it. You can even adjust the inputs multiple times and get correct results.
When you calculate the EMI manually, there is a high risk that you may commit errors. But such calculations can be risky. You cannot afford to go wrong on your EMI calculation as it can put off you overall financial planning.
Apart from giving you accurate results, the home loan EMI calculators are quick. When you do the calculations on your own, the whole process may seem overwhelming, especially if you have prior experience. Also, you may have to deal with complicated formulas and the whole process may consume your valuable time and efforts.
You can save yourself from all these hassles and use the online calculator instead to get quick results within seconds.
Easy to use
Today, most lenders in India have a home loan EMI calculator tool on their website and the loan representatives encourage the potential borrowers to use it. No matter, if you are a first-time borrower or an experienced one, the tool is easy to use.
All you must do is provide input in the specific sections and click on the compute EMI or calculate EMI button. The tool does the computing automatically and showcases the results.
Thus, there are more than one benefit of using an online EMI calculator. It helps you plan your finances, make an informed borrowing decision, and have a hassle-free borrowing experience.