Home loan is a crucial financial product which allows many to have their own dream home. Well, the procedure of availing a home loan is very simple and the minimum eligibility parameters required by financial institutions have made it more convenient to get a loan. However, planning for an accurate home loan option is something which many lack knowledge about. This results in financial mismanagement, stress, and financial burden. Here’s where you can use an online LIC home loan EMI calculator or SBI home loan EMI calculator for quick calculation of your monthly home loan repayment potential as per your cash inflows.
Accuracy of the loan amount –
Accuracy for loan proceeds must be one of the major concerns when planning a home loan. Knowing how much you require assists you plan your loan EMI and finances accordingly. When you are done with determining your loan proceeds requirement, it is equally necessary to compute the amount which you require paying as an interest constituent. Computing all this with complete accuracy is a little tough but using an online home loan EMI calculator makes it extremely simple for you.
Online home loan EMI calculator –
Online home loan EMI calculator basically is an instrument present on the online portal of lenders, which endows you with a completely clear picture of your EMIs on a monthly basis when you input details of your loan proceeds, repayment tenure, rate of interest and processing charges computation. This instrument is very simple yet extremely reliable to use. The amazing thing is it is totally free.
What are the benefits of an online home loan EMI calculator?
Allows you to plan out your finances in a better way –
Using the online EMI calculator endows you with an idea regarding your monthly EMI payable towards the amount you borrow. This assists you in planning out your budget well by keeping your monthly EMI in mind. In this manner, you can manage your other crucial financial obligations like other credit options and investments.
Also Check: SBI Home Loan EMI Calculator
User friendly –
The home loan EMI calculator is very simple to use. You just need to input your interest rate, amount, and repayment tenure and that is it. After inputting all these details, the estimated loan EMI will display, along with your overall borrowing cost, interest payable, etc. The calculator with ease solves the most complex computations and gives you an accurate result.
Makes the comparison simpler –
The online home loan calculator even assists you in better comparing distinct loan deals from distinct lenders. The rate of interest offered isn’t the only factor defining your borrowing cost and having a completely detailed computation assists you in better knowing the overall borrowing cost. Doing all of it manually can be tough as any mistake can spill over your entire computation. Using an online EMI calculator can solve all such problems with ease. You just need to input the loan offerings of distinct banks and conduct computations separately. Compare the outcomes and select the best-matched one according to your affordability and requirement.
Know cost breakup of borrowings –
Online home loan EMI calculator not just offers you computation for your home loan option but even offers you specific breakups on the involved costs. So, when getting a home loan if ever you face any hidden fees, you can ask your bank lenders directly regarding it as you get an idea of the entire cost in break-up format.
Assists you prepare for pre-payments –
You can use the online home loan calculator and better plan for the part or full prepayment. Using an online home loan calculator, in such a case assists you to get an idea about the difference in your loan EMI before and after prepayment and hence you can simply decide whether should you go for the option to prepay or not. Also, you can get an idea about the effectiveness of your part payment by viewing the after and before differences in the loan EMI.
Get an idea about the apt repayment tenure –
As you may know that the loan EMI directly is dependent on the rate of interest and the repayment tenure. Using the online home loan calculator assists you in better knowing the estimated loan EMI, so in the case you see your estimated EMI is unaffordable then you can make changes to your repayment tenure accordingly.
Accuracy in relation to loan proceeds is one of the major concerns when you plan for a home loan. It is because you get to know the exact amount you need to pay. When you are all done with determining the loan proceeds, it is necessary to compute the amount that you require repaying as an interest constituent. Doing all of it with total accuracy is a little tough but you do not require to worry as an online home loan calculator is the best tool in the market today that can assist you to compute all of it with ease.
What’s an online home loan EMI calculator?
As suggested by the name, an online home loan calculator assists you to compute how much your availed home loan would cost along with interest constituent payable. The online calculator even let you understand your estimated loan EMI towards your loan. Home loans come with a long repayment tenure and often stretch over a decade and by using an online home loan calculator you can better understand your financial outflow towards the home loan. This again assists you to better plan out your budget and determine your loan affordability. Using the online home loan calculator, you can compare distinct home loan deals and plans offered by distinct lenders and accordingly come to a decision. The online calculator also assists you to adjust your repayment tenure according to your loan affordability.
EMI computation formula –
Here, E equals EMI, P equals principal component, R equals interest rate every month and N equals repayment tenure for the home loan. One crucial fact for home loan repayments is that the monthly payment stays fixed but over time you must pay less towards interest and more towards the principal.