Your home loan eligibility primarily depends upon your repayment capacity i.e., EMIs. An EMI is that amount you must pay on time through the entire repayment tenure. Thus, before you apply for a housing loan, it is crucial that you carefully choose a lender who offers you the desirable loan at a nominal rate. To know the affordable EMI as per your repayment potential, you must take the help of a home loan EMI calculator.
A home loan EMI calculator is an online tool designed with the agenda to compute your home loan EMI and interest component with ease in just seconds. Once you get the optimal result using the calculator, you can go ahead and apply for a home loan.
Check out the benefits of using a home loan EMI calculator:
- Accurate EMI calculation: One of the important features of a home loan EMI calculator is it provides an accurate EMI result on provision of data – loan amount, loan repayment tenure and interest rate. Additionally, it also provides a breakup of your loan i.e., the amount you must repay as principal and interest constituent.
- Error free calculation: Manual home loan EMI calculation is always prone to human error. Hence, using a home loan calculator is a recommended option. These calculators compute an accurate and error free result based on the data entered by you.
- Comparison amongst lenders: With a home loan calculator you may not just understand your eligibility for home loan considering certain lenders but also can compare the EMIs with different lenders to select the appropriate one.
- Make an informed decision: Your home loan EMI is impacted by distinct parameters like your interest rate, principal amount, repayment tenure. With the increase in your loan amount and home loan interest rate, your EMI too rises. And in case if you select a longer repayment tenure, your home loan EMI falls.
Thus, home loan calculator is an online customized tool where distinct loan combinations can be tried by changing the added data to derive an optimal EMI depending upon your repayment capacity.
To avoid financial issues in the future, a realistic assessment and a prudent planning of your repayment potential is a must before you apply for home loan. It can be done using the home loan EMI calculator. This tool provides you with an estimate regarding your EMI repayment depending upon your repayment capacity. Note that the tool also provides you with an accurate outcome of your overall loan cost based on the details you input.