Things You Must Know About the Home Loan EMI Calculator
Would you like to buy a new house or renovate your existing house? If you answered “yes” to this question, we can assume that you are already thinking about applying for a home loan. Do you know how much money you will need to pay in equated monthly instalments (EMIs) if your home loan is approved? If not, you will need to use a home loan EMI calculator to find out the amount you owe.
When you borrow money from banks and other financial institutions, you have to pay equal installments every month. The online home loan EMI calculator helps you determine your EMI easily. Before applying for a home loan, learn more about a home loan EMI calculator and a home loan eligibility calculator and how to use them. Learn of their advantages as well.
Home Loan Calculator
This online tool provides you with the exact EMI amount you need to pay based on some information about the given home loan. The EMI calculator for home loans consists of three main parts:
- The term of the loan
- Main amount (principal amount)
- Interest rate
With the help of the calculator, the borrower can better understand what the repayment installment will be over a certain period at an interest rate that depends on the amount and term of the loan.
Benefits of the Home Loan Calculator
- Calculating your EMI will take several hours of paperwork. But with this online calculator, you only need to click once to make these calculations.
- Manual calculations often result in errors. The home loan calculator solves this problem, as it always provides accurate results.
- The home loan EMI calculator can be used to look at financial information and figure out how a prepayment will help a borrower pay off a loan before the due date.
- You can plan your budget better and get an amount that suits your needs if you know the repayment rate of your home loan in advance.
- Since you don’t have to reveal your identity when you use a free online EMI home loan calculator, you don’t have to worry about security when you use it.
How to Calculate a Home Loan EMI
If your home loan is approved, the financial institution will determine your monthly payment based on the loan amount, interest rate, and tenure. It’s crucial to keep in mind that adjustments to the interest rate and term will also affect your home loan EMI. So, it’s crucial to keep up with the latest plans and market rates.
The formula for home loan EMI calculation
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where R = Rate of interest
P = Loan amount or principal amount
N = Tenure or term of the loan
Let’s look at an example to help us understand. Consider that you want to spend Rs. 60 lakh on the house. The lending company has extended you a home loan for Rs. 50 lakh with a 25-year term and an annual interest rate of 10.5%.
The EMI that must be paid based on the formula above is then:
(50,00,000 x 0.00875 x (1+0.00875)^ 300)/ [(1+0.00875)^ 300-1] = Rs. 47,209
The above formula can be used to manually calculate the EMI of a home loan. However, manual calculations are very time-consuming and tedious. With an online home loan calculator, you can do these calculations quickly. With the EMI home loan calculator, you can simply enter values in the required fields and get instant results.
What is a Home Loan Eligibility Calculator
Utilizing a home loan eligibility calculator is one of the easiest ways to determine your eligibility for a home loan. You can find out how much you can borrow based on your credit score by using the home loan eligibility calculator. You can enter the required information in the online calculator to get a quick overview of the maximum amount of a home loan you can apply for. The factors that determine your creditworthiness are interest rate, age, monthly income, unpaid installments, and loan term.
How to Use the Home Loan Eligibility Calculator
- Select your location.
- Specify your age. When you apply for a loan, you must be a minimum of 21 years old and, 21 years old and, ideally, between 62 and 70 years old when the loan matures, depending on the lender’s criteria.
- Select your monthly net income (or, if you’re self-employed, your annual profit after tax). Please keep in mind that the money should be earned after all tax deductions have been taken.
- On the right, you will see the total amount of the home loan you qualify for. The term and interest rate are flexible and depend on you. To qualify for a loan, you need a minimum credit score of 750 on a scale of 300 to 900, and that’s it! The credit score calculator is a quick, easy, and user-friendly tool.
Key Takeaway
Use an EMI calculator for home loans. It is completely free of charge. Anyone can use it whenever they want and as often as they want. The online home loan calculator is 100% accurate and consistent. It is fast and gives an accurate estimate instantly.
Piramal Finance offers other calculators besides the loan EMI calculator. Visit Piramal Finance’s website or click here to learn more about their products and services.