The Topmost thought in most individuals' minds when they think of availing of a loan to buy a home will usually be on the repayment aspect. Your home loan is repaid via EMIs or equated monthly instalments. It is a fixed you require to pay every month till you finish with your home loan repayment. Every EMI consist of interest payable on your home loan, and a part of it is principal repayment. Generally, HDFC Home Loan EMI Calculator and other bank lenders' calculators are usually used for EMI calculation.
In case you are thinking about how to compute your home loan EMI or your Home Construction Loan EMI, ensure to use your home loan EMI calculator available on the website. Below listed are the details you must input into your calculator.
Your required loan proceeds
Your loan repayment tenure
Rate of interest
Depending upon the above 3 factors, the EMI calculator calculates the EMI you require to pay the lender every month. Few financial institutions’ EMI calculator also shows how much interest you may pay over the loan repayment tenure.
Here's an example of how the EMI calculator function:
Let’s say you availed a loan of about Rs 25 lakh for the repayment tenure of 20 years at an interest rate of 8.6 per cent p.a. Your EMI will stand at Rs 21,854. You would pay an interest component of Rs 27,44,978 over the loan repayment tenure.
A loan EMI calculator is helpful in planning your cash flow so that you can make your home loan repayments with ease. In simpler words, an EMI calculator is a helpful instrument for financial planning as well as loan servicing requirements.
If you have any other credit options that you are meeting, for instance, personal loan, car loan etc., the EMI calculated from the EMI calculator must be included in your other loan EMI repayments to evaluate how much of your overall earnings are earmarked for the loan repayments.
It is recommended to restrict your loan repayments to a maximum of 30 to 40 percent of your monthly income. You must use the affordability calculator to calculate the earnings that are earmarked for your repayments. This calculator captures your down payment, which you must make towards your home loan, your gross income (monthly), loan repayment tenure, home loan interest constituent and other loan-equated monthly instalments (EMIs) that you are presently servicing. Depending on the data, it will calculate the loan proceed that you are eligible for. Such a holistic view will provide you with a fair idea about the home loan amount you are eligible for and can service comfortably. If you are viewing to take a higher loan amount through a home loan, it will assist you in paying your other loans so that you hold a higher surplus income to service comfortably. If you want to take up a higher home loan, doing so would assist you in repaying your other loans so that you hold a higher surplus income to meet your home loan.
By using the home loan EMI calculator, you can plan out your cashflows and get a better picture of your home loan repayment as well as interest details.
How can an EMI Calculator Assist you with Better Planning your Finances?
When you avail of a home loan, you repay EMI for many years, like 20 years or even more. In case you avail of a home loan equaling Rs 50 lakh, you might be returning over Rs 90 lakh. This might be around Rs 40,000 each month based on your interest rate and repayment tenure. EMIs will have a massive impact on your finances.
Earlier, it was tough to know how much the EMI you would be repaying unless you had extensive talks with one of the reps from the lender. Nowadays, with a home loan EMI calculator on almost every site, you can get a good idea of the amount you will be spending month on month if you avail of a home loan.
Once you are aware of the home loan EMI, you can plan your budget efficiently. You can also determine whether you want to opt for a home loan. You can easily avoid awkward moments – for this, you can check up discreetly about the home loan EMI calculator. By using the calculator, you can know whether it is according to your present earnings and whether you will be able to pay the home loan EMIs. Availing of a loan and then suddenly realizing that you cannot pay the EMI would seriously be disastrous.
Other important ways wherein a home loan EMI calculator can help you in your financial planning:
Besides the ways listed above, a home loan calculator can even assist you in the listed ways-
You can Easily Readjust your Expenses.
Once you are aware in advance of the money that you will be repaying towards EMI, you can simply readjust your expenses (monthly). There should be various expenditures you can go without. Once you efficiently begin thinking, there will be various ways of saving your money.
You can Select the Correct Lender.
Distinct lenders might be providing distinct EMI facilities for the same repayment tenure and home loan amount. Even a minor point in the rate of interest can make a major difference over the long term. As every lender have their own home loan EMI calculator, you have distinct choices to explore before you fix a specific lender. Again, having an online EMI calculator for computing home loans is not precise as the quote that you would get from the lender. However, using the calculator on your website would give you an extremely fair idea of the EMI and interest rate.
The Home Loan EMI Calculator Assists you in Selecting the Correct Loan to Proceed with.
At times there are zero requirements for overboard because you are availing of a loan. As long as you may prove that you can pay your EMIs, a lender can easily loan you the amount you want. Perhaps you do not need that many funds? Might you can manage with extremely less?
Computing your EMI with a calculator allows you to be aware of the EMI that you must pay if you take this amount of home loan. Accordingly, you can even lower the amount to shorten the repayment tenure and lower the EMI. This can lift a few of the home loan EMI burden off you.