A home loan EMI in India is a long-term obligation as it comes with a large amount to be paid over a long duration. It is where a lender wants to be super confident that a prospective borrower can make timely repayments.
When a borrower is aware of the precise EMI amount, he/she can plan their finances easily. But many people don’t know how to calculate home loan EMI payable over a tenor.
Hence, it becomes a must to go through a quick guide to help you calculate home loan EMIs. Continue reading!
Here’s how you can calculate home loan EMI easily
While applying for housing finance, its affordability is a prime factor that affects your ability to make repayments. Home loan affordability depends on different factors like loan tenor, amount, and the applicable rate of interest.
If you want to calculate home loan EMIs, you don’t have to scratch your head. It is because there is a simple solution to do that.
It is by using the EMI calculator. Using the EMI calculator, it is possible to know about the exact loan EMI instantly.
What is an EMI calculator?
The EMI calculator is a handy online tool that makes it simple to compute your housing loan EMI. It saves time and provides you with real-time results that are error-free. This way, you can be sure to make way for upcoming expenses in the form of housing loan EMIs.
How to use the home loan EMI calculator?
Using the housing loan EMI calculator is easy if you can follow a few basic steps. Let’s take a look:
- The first thing is to land on the website of the lender you want to apply for the housing finance with. Navigate to the ‘Home Loan’ page and open ‘Home loan EMI calculator’ from the calculator’s section. Click on the ‘Home loan EMI calculator’ tab.
- The online EMI calculator will open. On this tool, you need to choose your desired loan amount, repayment tenor, and the applicable rate of interest.
- Soon after selecting these elements, the EMI calculator will showcase your exact payable EMIs, and total interest amount. It will also display the total loan payment (principal + interest).
The steps that are mentioned are standard and may change from lenders to lenders.
What are the advantages of the EMI calculator?
Lets you know if you can afford home loan EMIs or not
When you know how much to pay per month over duration in advance, you can decide if your income can support it. The EMI calculator helps you do that effortlessly.
Provides quick results
The EMI calculator gives you instant results that you can quickly see and don’t have to wait longer.
The calculation of the home loan EMI using the EMI calculator gives you error-free results. The amount of loan EMI is what you need to repay over a tenor and nothing more. It gives you the confidence of being aware of an error-free EMI amount. Overall, you can easily indulge inefficient financial planning.
Home loan EMI payment also reduces your tax obligation
The successful repayment of the loan EMI entitles you to claim up to Rs.1.5 lakh on the principal repaid via section 80C. It is also possible to claim an amount of up to Rs.2 lakh on tax deductions towards the housing finance interest part.
When you want to calculate loan EMI, you should be aware of some factors affecting it and the home loan interest rate.
Those vital factors include your property location, job profile, and debt to income ratio. They are also your interest rate types, loan tenor, and CIBIL score.
When it comes to seizing the best home loan offer, you can do that online and plan your finances in advance. It is possible to do that online on a third-party website. This way, you can select an offer matching your needs and your repayment capacity. This facility is available for free and round the clock.
Since you are aware of steps to calculate home loan EMIs, you can do that on the go and approach ensuing housing finance without efforts.