When you take a home loan, it is a huge financial responsibility. Such loans could range from low to high amounts. Some of the factors you need to consider a while before applying for the loan are the budget and your finances throughout the tenure. Home loans go on for two decades as well. Do not forget those monthly EMIs, interest rates levied by the lender, and the down payment you need to make.
However, it is great to do some maths before approaching the lender. Since most of them are aware of the facility of home loan EMI calculator available on the website, you can calculate the potential lenders’ inputs and decide on the right deal.
Here are some FAQs which will help clear your doubts –
What is the home loan EMI calculator all about?
It is an online tool that allows you to compute all the information on the tool, numerous times, free of cost. They are designed such which helps borrowers gauge the value of the house loan such as interest levied, the monthly EMI amount, and other associated charges applicable. Essentially, the calculator enables the borrowers to plan their finances and budget, post EMI deduction
Where is the calculator available, and how much does it cost?
They are online tools and available on every lenders’ portal. They fall under the loan section on the bank’s website. They do not cost a penny. Now, you have specialised calculator apps on Android and Apple phones. You can find out the desired loan value anytime, anywhere. The calculators are customised with the maximum and minimum loan amount, interest rates, and tenure. Once you have compared the features, you can calculate the amount on the chosen lender’s portal.
How to calculate EMIs?
It is easy to calculate the payable amount with the home loan calculator. Three tabs are typically found on all EMI calculators – the interest rates, tenure, and principal amount. A few calculators allow you to add the processing fees as well. You need to add the right information on the tabs. Once done, click the enter option and find out the payable EMI value. If the amount payable fall out of your budget, you can tweak them with the reset option.
Why use the EMI calculator?
One of the major benefits of using the calculator is you can compare lenders, calculate the existing debts, and manage your finances better. As mentioned earlier, nowadays, there are provisions to add the additional charges, plan the monthly budget, and streamline the budget. As compared to earlier times where one relied on Excel sheets for the loan value, which resulted in miscalculation, the home loan EMI calculator provides accurate and reliable information.
What are the risks associated with not using the calculator?
One of the significant concerns of not using the EMI calculator before approaching the lender is it could lead to rejection of the loan application. Rejected applications also have negative implications on the credit score. You may also be unaware of the additional costs involved and have to re-plan the finances.