You may have dreamed of owning a home your whole life and a house loan can help you finance your purchase with ease. When you avail a Home Loan from one of the top lenders, you not only get a significant loan amount of up to Rs.10 crore, but also affordable interest rates and flexible tenor of up to 240 months.
However, availing an affordable home loan is not enough. You also need to have a sound repayment plan in place to ease any strain on your finances. To do this, you need to forecast your home loan EMIs to choose the ideal loan offering for your needs, plan your finances for repayment, and avoid any chances of default. The easiest way to do this is by using an online home loan EMI calculator that reduces any chances of manual error while allowing you to compute the results in seconds.
You can calculate your home loan EMIs using this calculator by entering the following basic inputs.
Home Loan Amount
The home loan amount is the sum that a lender lends you to construct or purchase a house. Though this amount depends upon the property/project cost and your repayment capacity, meeting your lender’s home loan eligibility conditions with a sufficient income, a high credit score, job stability, and other factors can impact it significantly. Also, remember that lenders sanction only up to 75-90% of the property value as loan.
Housing Loan Interest Rate
The housing loan interest rate is the cost of borrowing a home loan from the lender of your choice. These rates vary from lender to lender. Interest rates can be of two types, namely, fixed and floating. Choose them carefully based on your finances and the advantages they offer.
The tenor of the Home Loan
Home loan tenor is the time period within which you must repay the loan. The longer the tenor, the higher will be your interest obligation on the loan, but the lower will be your EMI amount.
When you enter these basic details, you get the resultant EMI you have to pay based on the following formula:
EMI = [P x R x (1+R) ^N]/[(1+R) ^N-1]
‘P’ represents the loan amount or principal
‘N’ is the number of monthly instalments
‘R’ is the interest rate per month
For example, if you want to avail a home loan of Rs.25 lakh and would like to repay it in 20 years, assuming the interest rate is 10%, your EMI will be Rs.24,126. Likewise, if you think you can afford to pay higher EMIs and repay the home loan in a shorter tenor, say 15 years, change the tenor from 20 to 15 and your EMI will become Rs.26,865.
Thus, you can tweak the inputs in the home loan EMI calculator as per your choice and arrive at a comfortable EMI so as to make regular payments while keeping your budget on track.
Advantages of EMI Home Loan Calculator
- It is simple and easy to use and thus, saves time.
- It gives accurate results that you can count on.
- It helps you tweak the inputs to arrive at various outcomes so you can compare home loan offerings from different lenders, figure out a comfortable repayment tenor and also choose a home loan amount that is affordable for you.
Now that you know how to calculate your EMIs using the convenient home loan EMI calculator, get started by planning your home loan and become a property owner in no time.Tags: home loan eligibility, online home loan EMI calculator