On average, properties in India cost around 35-40 Lakhs. So if you are planning to buy a property with the help of a 40 Lakh Home Loan? Calculating the EMIs before signing on the dotted line is a great idea. However, this calculation is a complex task that requires tedious and time-consuming mathematical calculations.
A valuable tool like a Home Loan EMI calculator can help you with this. Users can use this tool to calculate their 40 Lakh Home Loan EMI to pay each month for loan repayment. Automatic calculations using an EMI calculator make loan planning much more manageable in several ways. Let’s understand the numerous advantages of using an EMI calculator for a Home Loan.
Mathematical Formula for EMI Calculation
Here is the mathematical formula to calculate the Home Loan EMIs manually:
EMI = P × r × (1 + r) n/ ((1 + r) n – 1)
Here, P = Loan amount, r = interest rate, n = tenure in the number of months
While planning to apply for a Home Loan, an EMI calculator helps figure out several details about the loan amount, tenure, interest rate, monthly EMI, and interest outgo. The tool gives the exact payment amount, including a chart showing the payment details and schedule. For instance, while calculating a 40 Lakh Home Loan EMI, one must enter the loan amount, interest rate, and loan tenure to get the exact EMI to be paid each month.
Benefits of Using a Home Loan EMI Calculator
The numerous advantages of using a Home Loan EMI calculator help plan the Home Loan with care while balancing the finances. Let’s look at the various benefits of using the EMI calculator.
- Simple, Instant, Accurate, and Convenient: While planning for a Home Loan, no one can afford to go wrong with numbers. Manual EMI calculations are error-prone, time-consuming, and need mathematical skills. A Home Loan EMI calculator resolves the issue by giving the correct results each time.
- Fast Calculations: Manually calculating the EMIs using pen and paper takes hours, and you also need to consider the percentage margin for errors. With an online EMI calculator, performing these calculations becomes as quick as a few mouse clicks. Since it is an AI-powered tool that makes exact calculations using the entered variables, it displays the results within seconds with no room for errors.
- Easy Financial Planning: An EMI calculator protects borrowers from financial troubles later. They can know their loan amount using a Home Loan eligibility calculator online and enter it into the EMI calculator to find the EMIs. Accordingly, they can adjust the loan amount or repayment term to match their convenient budget. Knowing the EMI amount beforehand helps plan the budget efficiently, enabling borrowers to get an amount and choose a loan term that fits their bill.
- Better Loan Management: Many borrowers have additional financial obligations to handle each month. Taking their income and DTI ratio into account, they can use a Home Loan EMI calculator to know the new financial commitment and plan the loan accordingly. Adjusting the loan tenure is the best way to get an EMI amount that fits their budget without causing financial strain.
- Easy Loan Comparison: Users can use a Home Loan eligibility calculator online to determine their loan eligibility from different lending institutions. Once they know the loan amount, they can use an EMI calculator to compare different interest rates and EMIs and choose a loan scheme that suits their specific details.
- No Personal Details Required: Users don’t need to worry about security using a home loan EMI calculator. The online tool does not ask the users to reveal their identity or provide personal or financial details. That means using an EMI calculator is entirely safe.
How to Use a Home Loan EMI Calculator
A Home Loan EMI calculator does not require mathematical or technical skills. A layperson connected to the internet can quickly use this tool to get the desired results. These are the simple steps to follow:
- Visit the NBFC’s official website
- Open their Home Loan EMI calculator
- Enter the loan amount
- Select the rate of interest the lender offers
- Choose a tentative loan tenure
The EMI amount for the entered variables will instantly appear on the screen. A pie chart showing the principal amount, interest payable, and total payable will also appear. For instance, if you take a Home Loan of ₹ 40 Lakh for 20 years at an interest rate of 12%, your 40 Lakh Home Loan EMI per month would be ₹ 44,043.
A Home Loan EMI calculator makes EMI calculations extremely fast and straightforward without any chance of errors. Get instant results by entering the correct values in the fields and adjusting the numbers according to your monthly budget and repayment capacity.