Every individual interested in opting for a home loan should start their research work months before applying for it. Improving the credit score, understanding what amount of loan would be suitable and finding the correct lender are all the things that the borrower should consider. Individuals can use a housing loan EMI calculator to streamline the process and make it easier.
Top 9 benefits of using an online home loan EMI calculator
With the usage of these calculators, borrowers can get the following benefits:
- Making a financial plan is made easier by using a housing loan calculator for EMI to figure out the monthly instalment payments.
- It makes calculating EMIs simple. The calculator will automatically calculate and display the house loan EMI amount once individuals enter pertinent data in the appropriate slots, such as the principal loan amount, interest rate, and loan tenor.
- There is a chance for human mistakes while performing manual calculations. However, online tools generate reliable and error-free results.
- It gives borrowers a breakdown of their loan amount, indicating how much they will have to pay as interest and principal amounts.
- Borrowers can use the EMI calculator to compare offers from various banks. They can choose the best option based on their needs by looking at results that display the entire loan amount and the relevant EMIs.
- In rare cases, customers might have more money to make advance payments. Then, they can calculate how prepaying will affect the loan tenor, the amount of interest due, and the EMIs using an online housing loan EMI calculator. Consequently, it aids in loan management.
- Loan applicants have the freedom to create infinite permutations and combinations that aid in calculating the appropriate EMI.
- Individuals can choose whether they want to take out a housing loan with a shorter or longer duration based on the information provided by the EMI calculator. They can obtain a house loan with a shorter term if they want to pay off their debt more quickly. On the other hand, borrowers can apply for a home loan with a longer term if they don’t want to change their lifestyle or reduce their daily spending.
- Borrowers need not be concerned about security when using a free online home loan EMI calculator. It is entirely safe because they do not have to provide their identity.
Now that borrowers know the benefits of using a calculator for a housing loan, they should also know the steps to use one.
Steps to use an online home loan EMI calculator
All that individuals need to do to derive their monthly EMIs are:
- Step 1: Visit the lending institution’s website and click on the home loan EMI calculator option.
- Step 2: Enter the desired loan amount, the loan tenor and the housing loan interest rate
- Step 3: Borrowers can either input the numbers manually or use the sliders to get accurate results.
Apart from using online EMI calculators, borrowers can also use home loan eligibility calculators to get an idea of how much loan they can get. Although the exact amount would vary on a number of other things, using this will let borrowers negotiate a better offer to the lender.
The calculation of monthly EMIs in advance also has another benefit; that is, it would save borrowers from facing the outcomes of defaulting on their home loan EMI. In addition, they can improve their credit scores with regular repayments of their monthly instalments.
Furthermore, several financial institutions provide pre-approved offers to their customers on products including home loans and loans against property. These offers accelerate and simplify the home loan process. To check their pre-approved offers, borrowers can enter their credentials into the required section on the websites.
Thus, home loan EMI calculators are a free-to-access and easy-to-use tool that helps borrowers in several ways. However, borrowers should directly contact the lending institutions to negotiate the best offers.