After facing the steepest economic contraction during the recent turbulent times, India recovered rapidly with its own redefined debt sustainability framework. Along with that, the ever-increasing demand for affordable housing properties, especially in smaller towns and peripheries of bigger cities, played a significant role in this economic recovery. The uncertainties surrounding the present market situation made individuals realise the value of financial stability and the security of owning a house.
Recent data showed that the demand for housing credits stayed intact in 2020, and the home loan market is expected to grow at a CAGR of 22% to 2026. The growth has been mostly driven by some key factors like improvement in living standards, upgraded connectivity and lower land cost.
Apart from that, increasing awareness regarding various ancillary products, including home loans has been beneficial for the market as well. From comparing interest rates offered by different lenders to calculating monthly instalments using an online home loan EMI calculator, individuals are keener to explore such minor details.
How home loan EMI calculator works
EMI calculator enables the tech-savvy millennial population to improve their financial planning and manage the monthly expenses better. Since investing in real estate is an expensive affair, it is necessary to check your borrowing capacity, compare different interest rates, and choose a suitable home loan tenor accordingly.
In this regard, borrowers should know the importance of a home loan EMI calculator with prepayment option and its workings. The EMI calculator mainly follows the formula:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1].
Here P stands for the principal loan amount, R denotes the rate of interest offered by the financial institution and N stands for the repayment tenor you have opted for.
In order to calculate home loan EMI using a home loan EMI calculator, you can follow the below steps:
Step 1: Utilising easy access to the internet, you can visit the online portal of your preferred financial institution to calculate EMIs.
Step 2: Enter the loan amount, preferred tenure and interest rate to get the exact home loan EMI value within seconds.
Checking this beforehand provides you with a clear idea about the rate of interest involved. Later you can find ways to reduce the home loan interest rate and make it affordable. Even though the aforementioned formula can be used to calculate EMIs manually, the online tool saves you from a tedious procedure and inaccurate results.
Advantages of home loan EMI calculator online
Security Guard Course and the EMI calculation allows you to stay prepared for your financial liabilities and plan your finances accordingly. Following are the benefits of calculating EMIs before taking a home loan.
Comparing loan offers:
Home loan interest rates usually vary from one lender to another depending on one’s creditworthiness. A home loan EMI calculator India helps you to find out the exact EMI value beforehand so that you can compare different lenders and offers as per your repayment capacity.
Also, with different pre-approved offers from renowned NBFCs, financing has become a lot more convenient and hassle-free. These offers are generally available on various financial products like home loans, loan against property, etc. Borrowers get the preference to check their pre-approved offer by submitting contact details and get better deals on home loan.
From planning to pay-off the debt to getting a comprehensive insight into loan related information, the EMI calculator keeps you updated regarding all of them. This way, it becomes easier to plan other expenses so that you don’t end up defaulting on payments.
Considering these basic requirements, it is necessary to prioritise checking your loan EMIs with a home loan EMI calculator.