How a Home Loan EMI Calculator Helps You Plan Smart Repayments
Purchasing real estate requires careful planning, and a home loan EMI calculator aids first-time buyers by providing accurate EMI calculations.
Purchasing real estate is always a big decision. There are several things that you need to know before making this decision. If you are a first-time home buyer, then chances are that you are seeking a home loan to finance your dream house. In fact, out of all the loans taken in India, housing loans take up a 14.2% share as of March 2023. If you, too, are browsing home loans, then a home loan EMI calculator can be quite useful. Using it properly can help you plan your home loan repayments smartly.
What Is a Home Loan EMI Calculator?
It is a free-to-use online calculator that helps you calculate your Equated Monthly Instalments (EMIs) for a home loan. The way this calculator works is that you have to fill in certain details, such as:
- The loan amount
- The interest rate
- The repayment period or tenure.
After entering these details, the home loan EMI calculator will automatically calculate the monthly EMI for the specific loan amount. The best part is that you can change this value by editing the inputs for loan amount (principal), interest rate, and loan tenure. As a result, an EMI calculator can help you customise an EMI amount that you can afford.
Why Should You Use a Home Loan EMI Calculator?
Those with financial discipline prefer using an EMI calculator because of its simplicity and ability to project their future income. Since a home loan usually extends for 10 to 20 years, it helps to plan out the EMIs based on current and future income. Besides, this calculator can also help you to:
- See how different loan amounts and interest rates change your EMI
- Decide how long you want to take to repay the home loan
- Avoid taking a home loan that you cannot afford to repay on time
- And make sure you have enough money left for other monthly expenses.
Choose the Right Loan Amount Using EMI Calculator
An online EMI calculator has sliders for adjusting different values like the loan amount, the loan tenure, and the interest rate. You can move these slides up and down in the home loan EMI calculator and see the difference in the resulting EMI amounts. You can even review the EMIs for different loan offers from various lending institutions using this method. Ultimately, you have the freedom to choose the right loan amount and the most suitable lender using an EMI calculator.
Avoid Financial Strain Using EMI Calculator
With a home loan EMI calculator, you can avoid unwanted situations such as not having enough in your loan account to pay for monthly instalments. Instead of impulsively taking a home loan, you can first put in the home loan amount and tentative loan tenure, along with the interest rate charged by the lending institution, into an EMI calculator. This will help you determine the exact EMI amount for the home loan. This will help you decide which EMI amount is within your monthly budget. As a result, you can choose the corresponding loan amount and tenure to ensure that you never default on repayments.
Plan Smart Repayments Using EMI Calculator
When taking a home loan to finance your first real estate purchase, it is essential to plan out the repayment scheme smartly. You can do this with the help of a home loan EMI calculator. One method is to plan partial repayments of the home loan as and when you think you will have extra funds available. When you make a partial repayment on your home loan, you are effectively reducing the loan amount and the new EMI is calculated based on this. An EMI calculator can help you forecast this amount so that you can plan your repayments smartly.
Save Time Using EMI Calculator
Another overlooked perk of using a home loan EMI calculator is the time you can save by avoiding manual calculations. Calculating and recalculating your EMI amounts manually can be a tedious process. There are even high chances of human errors when doing this. However, with an EMI calculator, you can rest assured that the calculated EMI amounts are accurate. This will also save you time that you can use in more productive activities.
Final Thoughts
Taking a home loan is a big step, and so is planning to repay it the right way. A home loan EMI calculator is a simple tool, but it can make a big difference. It helps you understand your loan better, avoid mistakes, and stay in control of your money.
Note to readers: This article is part of HT's paid consumer connect initiative and is independently created by the brand. HT assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently.
Want to get your story featured as above? click here!
