- By JE Brand Desk
- Fri, 28 Apr 2023 03:48 PM (IST)
- Source:JND
The process of getting a home loan has become simple with superior digital tools, technological advancements, and at-home services! If you are well prepared, your home loan application can be verified, approved, and disbursed within hours.
The first step to applying for a home loan application is to analyse the right home loan provider and finalise the key details of the loan, like your loan tenure, loan amount, and loan EMI. This is where the importance of home loan calculators is highlighted. Read on to learn more about how these digital tools make the process convenient!
What is a Home Loan Calculator?
The home loan calculator is a free yet powerful digital tool that helps you determine the loan amount and the repayment process. It also helps analyse the interest component, finalise the EMI according to a monthly budget, and select the right financial institution. It is a key tool that helps in planning and managing finances.
- 7 Ways in Which Home Loan Calculators Make the Process Simpler
Here are the top 7 ways in which these free mathematical tools make the procedure of applying for home loans simple and convenient.
Helps You Select the Right Loan Amount, Tenure, and EMI.
The EMI Calculator uses the formula EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
P = principal amount
N = loan tenure
R = home loan interest rate
You can use various combinations and possibilities to find out the best loan amount and the number of months in which the loan will be repaid and apply different rates of interest (as offered by different providers) to assess the EMI. It helps you assess whether the EMI is affordable for you and whether the down payment should be increased to lower the loan amount.
Helps You Compare and Select the Right Financial Institution
One of the key parameters of the EMI calculator is the interest rate. If you have 2-3 offers from home loan providers, you can calculate your prepayment chart, interest payable amount for the entire term, and monthly EMI based on the interest rate offered by each of them. This will help you compare and select the best financial institution.
Simple, Easy, Accurate, and Free to Use
Some of the best features of home loan EMI calculators are that they
- don’t cost anything,
- are available 24/7,
- give precise and accurate results,
- save you from tedious manual mathematical calculations, and
- simple to use.
- Gives You an Accurate Breakdown of Your Home Loan Details
It gives details related to your home loan EMI and helps you with an amortisation schedule for the entire term. This helps you assess the interest factor and how every EMI constitutes the principal and interest factor.
- Helps You Financially Plan for the Future
You can keep track of other loans, and assess your financial condition, depending on the housing loan calculator. You can even consider the benefits of taking a joint loan which will help you with joint home loan tax benefits, by making several comparisons on the EMI home loan calculator.
- Helps You in Assessing the Financial Charges
Besides interest, another critical charge levied by home loan providers is the processing fee or finance charges. The calculator helps you assess the same by comparing the EMI calculated by you and the EMI offered by the financial institution.
- Conclusion
The bottom line is that if you are preparing for a home loan, the first step to initiate the procedure and carefully plan your finances is to use a home loan calculator. It helps you chalk out an elaborate schedule, which will help you decide how much you should accumulate today and how much you should save for the future. So, streamline your credit needs and use a housing loan calculator to plan better and manage your finances!
(Note: This article has been written by the Brand Desk)