If you think that deciding and applying for a home loan is the end of your home buying journey, then you are wrong. You are just starting it. It is important to decide which home loan you want to get before applying for it. Many lenders in India provide home loans at great rates but choose carefully before making a purchase.
If you are applying for a home loan, you already know that you have to repay it in installments, commonly known as EMI. If you don’t know how much you can afford based on your monthly salary, it will save you from difficult times. Using an online housing loan calculator, you do not need to perform extensive calculations.
What is a home loan calculator?
A home loan calculator is a loan management tool that helps you calculate the exact amount you have to pay back to your lender of the principal amount of the home loan. Decide and discuss with your lender whether you want to pay back the total amount of the home loan through monthly EMI, half-yearly, or yearly payments. It is an option that may or may not be available with lenders, as most lenders offer monthly installments.
You have to familiarise yourself with some simple and basic terms before using this incredible tool that will help you manage your finances. Here we have mentioned all the simple terms you need to use an online home loan calculator.
- Principal amount –
is the total quantity of money you have borrowed from the lender as a home loan. This amount will be upto a maximum of 90% of the value of the property you wish to purchase
- Loan tenure –
is the total period in which you have to repay the loan amount to the lender
- The applicable interest rate-
is the amount that your lender will charge you to lend you the principal amount. Make sure that you discuss the rates beforehand.
- Equated monthly instalment –
is the portion of the total principal amount and interest you have to pay the lender every month according to the schedule you and your lender agreed to.
Using a home loan calculator can make home loan planning easier?
There are several benefits to using a loan calculator. Planning your home loan becomes much simpler
- An online home loan calculator is a convenient tool to manage your finances. With this calculator, you do not have to worry about doing mathematical calculations to know the EMI you have to pay back every month.
- Based on your present financial condition, the calculator will help you know what amount of home loan best suits your needs and let you know if you meet all the housing loan criteria. It makes the home loan process easier for you and helps you manage your finances. It will help you to avoid financial problems in the future.
- Using an online home loan calculator is extremely helpful when making prepayments to your lender for your loan amount. You can manage all your pre-payments and repay the loan early using the calculator.
- One of the benefits of using a home loan calculator is that it allows you to compare home loan offers from different lenders. Also You can easily reach other home loans provided by different lenders and decide what fits your financial needs.
- By using these calculators, you can decide your loan tenure. If you think you can manage a higher amount of EMI, you can decrease your tenure according to your needs.
- When you use a home loan calculator, your data and identity are kept safe without any compromise, making the whole process risk-free.
Using a home loan calculator can make your home loan process easier and less stressful. To use a home loan calculator or information on the terms of housing loans, log on to the official website of lenders like Grihshakti. NBFCs offer online home loan eligibility and EMI calculators on their websites.
