Owning a home is a significant milestone that many individuals have due to a deeply cherished emotion. It gives them a sense of personal achievement, and many fulfil this aspiration and live happily. Since it’s a big investment, it often requires financial assistance in the form of home loans.
Many believe that borrowing one is tricky, but that’s only if you don’t plan it out the right way. Yes, the key to having a seamless home-buying experience is to factor in all the considerations of borrowing a loan, especially a repayment. A popular online tool, the home loan EMI calculator, can help you out with the same. It’s a technological innovation in the financial industry to ease home loan repayments.
Let’s find out how this EMI calculator helps you out.
What is a Home Loan EMI Calculator and How Does it Work?
An EMI calculator for home loans is a user-friendly tool available online. It helps you estimate your fixed-amount monthly equated monthly instalment (EMI) payments. You must pay them towards your loan over the chosen tenure.
The calculator uses three key factors to determine your EMI:
- Loan Amount: The total amount you borrow from a bank or NBFC (Non-Banking Financial Company) to finance your home purchase is your total loan amount.
- Interest rate: This is the annual percentage rate charged by the lender on the loan amount.
- Loan tenure (years): This is the total duration over which you’re going to repay the loan, typically ranging from 10 to 30 years.
By entering these details into the loan EMI calculator, you’ll receive an estimated figure for your monthly EMI payment. This allows you to assess your affordability and budget for your home loan comfortably.
Why Use a Home Loan EMI Calculator Before Applying for a Loan?
Using a home loan EMI calculator before applying for a loan offers several advantages:
- Financial Planning: The calculator allows you to understand your affordability and plan your monthly budget for loan repayments realistically. This helps you determine the maximum loan amount you can comfortably manage without straining your finances.
- Informed Decision-Making: You can compare loan options from different lenders before committing. The EMI calculator provides a clearer picture of the total cost of borrowing across different loan options. This allows you to choose the one that best suits your financial situation.
- Negotiation Leverage: Having a clear idea of your estimated EMI based on different interest rates empowers you during negotiations with lenders. Using the calculator to learn more about them can help you negotiate a competitive interest rate and significantly impact your overall repayment amount.
- Reducing Financial Stress: Knowing your estimated EMIs upfront reduces financial stress and ensures you can manage your monthly loan payments comfortably.
How to Access a Home Loan EMI Calculator?
Once you know the benefits of the loan EMI calculator for managing home loan repayments, you must know where to access it from. There are two convenient ways to do it, and they are:
- Using a Reliable NBFC’s Home Loan Calculator App:
Many reputable NBFCs offer user-friendly mobile applications that integrate a home loan EMI calculator. Here’s a general process on how to access it:
- Download the App: Search for the official mobile app of your chosen NBFC on the Google Play Store (Android) or App Store (iOS).
- Install and Launch the App: Once the home loan calculator app is downloaded, install and launch it on your smartphone.
- Locate the EMI Calculator: Look for a dedicated “EMI Calculator” section within the app. Some apps might have it under a “Home Loan” or “Loan Tools” section.
- Input Your Details: Enter the desired loan amount, interest rate (if pre-filled, you can adjust it), and preferred loan tenure (in years).
- Calculate Your EMI: Click on the “Calculate” button to receive your estimated monthly EMI.
- Using a Reliable NBFC’s Official Website:
Most NBFCs provide a home loan EMI calculator directly on their websites. Here’s a general guide on how to access it:
- Visit the NBFC’s Website: Open your web browser and search for your NBFC’s official website.
- Locate the EMI Calculator: Look for a “Home Loan EMI Calculator” section or a “Loan Tools” section on the website’s menu or homepage.
- Input Your Details: Similar to the mobile app, enter the required loan details.
- Calculate Your EMI: Click on the “Calculate” button to view your estimated monthly EMI.
The Road to Homeownership Starts Here
Home loan EMI calculator is more than just another financial tool to do some calculations. It actually helps you plan out your home loan, negotiate better terms, secure the best option, and even repay it smoothly. If you’re looking to leverage a similar tool, you must download a reliable NBFC loan app or visit their official website like that of Tata Capital.
In addition to offering a variety of loans, they are popular for their user-friendly loan EMI calculators. You can easily use them either by downloading their home loan app or by visiting their official website.
Pick your choice between an app and a website to walk the road of homeownership smoothly today!