Explained: what is an EMI Calculator, how it works & why you should use one.

Using an EMI Calculator is extremely beneficial - however, thousands of borrowers go ahead with their loan processes without even knowing that a tool like this exists. Keeping this in mind, the following article will tell you everything you need to know about these calculators, including how it works, where to find one and the benefits of using one before you apply for your home loan.

So firstly, what is an EMI Calculator?

It’s a simple online tool that provides you a complete break-up of your repayments in seconds. Just feed it with the specifics of your home loan - such as the loan amount, the tenure & the interest rate. Once you’ve submitted the details, complex algorithms will do the math for you and give you a tabularized breakdown of your entire repayment schedule – from the very first EMI to the very last one.

Where do you find these calculators?

Well, the internet is full of them. You just have to access your web browser, type in ‘EMI Calculator’ and hit enter. All major lenders have a calculator as do most renowned home loan aggregator sites. You should be able to find one without much of a hassle. The best part is that you don’t even need to pay to use these tools, anyone can use them without paying even a single penny, and you won’t even have to provide your personal details or subscribe to any sort of newsletter.

EMI Calculator

What are the benefits of using one?

The benefits are multifold. Firstly, knowing the EMI amount will help you understand your home loan affordability. If the EMI is too high, it simply means you cannot afford to apply for such a large loan amount. You can keep cutting back on the loan amount until the EMI provided by the calculator is financially viable for you.

The next benefit is error-free and next to accurate results. The kind of results you’d have to spend at least a couple of hours to compute on your own. And even if you do take the math into your own hands, there’s always a chance that there’s an error in your workings that you don’t even know about. This might lead to planning based on incorrect calculations. An EMI Calculator gives you peace of mind from such a scenario.

Finally, with the entire repayment schedule tabularized and neatly laid out before you, making financial plans to tackle the repayment phase becomes super easy. You know the EMI amount, allowing you slash unwanted expenses and adjust your monthly expenses to create space to accommodate the monthly payments of your home loan.

Are there other calculators?

Yes, there calculators to help you calculate your eligibility – this is essential before applying for a loan. It could save you from potential loan rejections and wasted processing fees. Then there are affordability calculators that help you with your home purchase budgeting and purchase. Some lenders also have Length Conversion calculators that help you get a better sense of a property’s dimensions.

We trust that after reading this article you have a better understanding of EMI Calculators. Hopefully, this will cause more borrowers to use these tools before they apply for a home loan and ensure they have a smooth borrowing experience. Good luck and all the best!

How to calculate monthly instalment ease?

Buying a home needs a lot of calculations and preparation of your finances. When you take a home loan, it’s important to know the monthly installments that you would be paying to the lenders every month towards loan repayment. Experts say a wise person should not exceed the EMIs more than 30% of the take-home salary. Else, it can seriously disrupt your finances. In prior days, to determine the EMI people had to sit with the financial expert along with pen and paper, do all the brainstorming and arrive at a consensus of suitable EMIs. However, it was quite tedious, time-consuming and also couldn't guarantee 100% solution. A slight miss-misjudgment could cost a huge sum on your pockets.

But, all thanks to the internet due to which you can get to know the EMIs of your home loan in a couple of minutes. All you need to do is input few parameters like interest rate, loan amount, tenure and it will display the desired result of EMI, total interest outgo and the money you have to repay.

EMI CALCULATOR

The parameter on which your home loan EMI gets calculated is as follows:

Principal Amount: The borrower needs to enter the principal amount in the calculator.

Interest rate: It would be preferred rate as per banks or non-banking finance companies minimum to maximum mentioned rates. And also you have to specify the type such as fixed or floating interest rate.

Tenure: It would be the time duration you require repaying the loan and usually it varies from 20-30 years of timespan.

You can try different combination as per your requirements to come at a suitable figure for your home loan repayment.

Benefits of using housing loan EMI calculator:

EMI Calculator online can quickly determine the monthly installment. By entering a few details like loan amount, interest rate and loan tenure, you can check the payment details.

Definitely, it saves your hours of time as this tedious calculation is done within a few seconds. You can do this calculation on your own sipping a cup of coffee at cozy corners of your homes or offices.

The calculation done through online calculators are accurate and provide genuine payment details. Thus, you have a guaranteed solution on the EMIs

You can visit EMI calculator page of different websites of lenders and check the difference between interest rates before you come to any conclusion. You can choose the lowest home loan interest rates.

When you know what does your repayment graph look like you can stay prepared, keep your saving intact towards the monthly installment and make a disciplined effort for loan repayment.  You will stop splurging on unnecessary things as well.

When you're in the middle of repaying a home loan you can revisit your finances and replan it with EMI calculator. You can pay off the loan before the term ends, with proper planning using EMI calculator.

Home loan EMI calculator are one of the preferred options to tech-savvy borrowers who can check their loan eligibility, EMIs and interest outgo and accordingly make an informed decision on their loan.

The various benefits of using an EMI Calculator.

The costs of properties have increased tremendously in recent years. Thus, there are a lot of people who find it difficult to buy a place of their own. But thanks to the home loans provided by banks and NBFCs (non-banking financial companies) people can make use of it and purchase their ‘dream house’. Other than that, people can also make use of these loans for home extension or to refurbish any of their existing property. One of the major benefits of the home loans provided by banks and NBFCs (non-banking financial companies) is that they charge lower interest rates when compared with traditional financiers and loan sharks. There are also a number of special discounts given on interest rates for women borrowers. They are offered home loans at 0.05% lower interest rates when compared with the interest rates of male borrowers. The financial institutions also offer an EMI Calculator to ease the repayment process.

There are a lot of benefits of making use of home loans. A few of them are here as follows:

1) The tenure time given for repayment of home loans is generally longer when compared with other types of loans. You can opt for a maximum repayment of 30 years, which is given by most of the banks and NBFCs (non-banking financial companies).

2) The repayment of these loans is done in the flexible form of EMIs (equated monthly installments); thus, you can easily plan and pay all of your future repayments. The banks and NBFCs (non-banking financial companies) have also started providing EMI Calculator on their online website. Thus, you can simply make use of it by having an online connection and a suitable electronic device (laptop, computer, tablet, etc.).

3) The financial institutions have also started offering transfer of balance option. Thus, people can make use of this feature and switch from one financial institution to another. This helps you to re-negotiate on the applicable interest rates.

But the best tool provided by financial institutions is indisputably an EMI Calculator. This calculator has got a number of benefits to making use of them.

A few of them are here as follows:

Free-of-cost: This calculator is free for your use. Meaning, you don’t have to pay any money to financial institutions for making use of them. There are a number of banks and NBFCs (non-banking financial companies) which have started providing this tool on their online website.

Easy to make use of: This calculator is extremely easy to make use of. Each and every person can use this calculator. You don’t have to be a technical wizard to make use of this tool. You only need a few details such as your principal amount, repayment tenure you wish to opt for, and you can get the desired results.

Multiple outcomes: The biggest benefit of making use of an EMI Calculator is that it gives out multiple results. Thus, you can get multiple variables by entering different principal amounts and tenure.

Thus, these are the following ways in which a calculator is useful. Hope this article will help you understand the various benefits of making use of an equated monthly installment calculator.

5 things you need to know before opting for a home loan.

HOME LOAN EMI CALCULATOR

A home loan is potentially one of the biggest decisions of your lifetime. And to ensure you come out of this decision smiling and with a home to your name, it’s extremely important you get the preparation right before even applying for the loan. Like they say, what begins well ends well? Keeping this in mind, the following article will highlight some of the things you should see to before you apply for a housing loan to ensure you enjoy a smooth and hassle-free borrowing experience.

1. Your finances.
Before you apply for a home loan, you need to have an exact idea of your finances. You need to figure out the budget of your home, how much of the purchase amount you can cover with a down payment, the loan you need and the amount you are eligible for. Begin with your eligibility so you can then decide the budget for the purchase and the amount you’ll need to foot out of your own pocket. Most lenders have an eligibility calculator that you can use for that should give you a rough but better idea of your eligibility.

2. Your credit score.
Credit ratings are very important. A good score will ensure a smooth application process and also bring quick approvals. A poor score, on the other hand, could hinder your plans or cause you to settle for a poor loan offering (the better loans require higher scores). Generally, CIBIL is one of the more recognized credit rating companies in India for a home loan. A CIBIL score above 700 is considered as good, anything below that, not so good. So get your credit score, look for any errors in the report and see if you can improve the score before applying.

3. The repayment schedule of the home loan.
It’s important you know what your repayment schedule would be like before you apply. This way, you can see if you can handle can handle the applicable EMIs or if you’ll need to look at a smaller amount. Further, having the entire repayment schedule before you will help create better financial plans to cover the EMIs. Using an EMI Calculator will help you get the entire repayment schedule tabularized and neatly presented for you.

4. Upfront costs.
Besides the down payments, there are a number of upfront costs you need to account for. They include the processing fee, stamp duty, and registration fees. If you are going to take an insurance policy as a safety net, the premium is another cost you would have to consider.

5. Terms and conditions.
Before you sign along the dotted line and commit to the decision, you need to know all the terms and conditions. You will have to set aside time and go through the fine print thoroughly – it won’t make for leisurely reading but it’s a must. If you find any points that are above your understanding or that require clarity, do approach the lender and have your doubts cleared before finalizing. It’s extremely important you go into a home fully aware and informed about what you are getting into.

These were some of the more important things you need to be well aware of before you take a home loan. We hope these pointers provide you a smooth borrowing experience and help you come out the decision as a proud homeowner and with an immense sense of accomplishment.

Good luck and all the best!

4 Tips to save money on your housing loan

Buying your dream property is one of the biggest steps in your life. It’s like a sign of financial maturity and offering stability for the near future. Taking a property means chasing the preferred location & its vicinity, budget, builder authorization and finally how to finance it. Well, with private finance companies willing to offer a home loan, financing your dream is no more a herculean task.

However, when one takes the home loan there is a lot of aspects which needs careful consideration such as interest rate, processing fee, principal amount, etc. Most of us are so concerned about the monthly installment that we barely give our home loan a second thought. There are a number of important steps that can be taken to ensure that the money can be saved on your housing finance. So, here are a few tips that will help you save money on your housing loan:

Do thorough Research

Shopping around for home loans need proper market insights and help you choose the best-suited financing option. Comparing loan and negotiating with lenders can save you a lot of money. Once you know what lenders have to offer in terms of rates and fees, you can negotiate for better housing loan deal. Lower the interest rate, lesser you would be paying and more savings on your total cost you will bear.

Home Loan

Improve Credit Score

Your Credit score has a direct impact on the interest rates. Hence, it’s always important to keep improving your credit score. So, that you can negotiate with the lenders for better rate deal. When applying for home loan, ensure that you improve your credit score at least six months to one year before the application. If the credit score is low, the lender will reject your application. And if the applicant has a good credit, score he or she is considered credit-worthy and lenders place a trust on him or her.

Opt for Refinancing

Many time lenders lure with an interesting deal, which later proves to be costly on your wallet. If it's proving costly you can talk to other private lenders who are willing to reduce the interest rate for you. A good credit score, better income source, and timely repayments can put in a comfortable position for negotiating with the existing lender or switch lenders and opt for home loan refinancing. One must be aware of the costs associated with the balance transfer option.

Tax Benefits

One of the best ways to save money is redeemed tax benefits. You're entitled to tax benefits and it can help you save money as you can on the interest. For instance, under section 80C, a housing loan borrower can claim for a tax deduction of up to Rs 1.5 lakh if he or she is a salaried individual, and for self-employed, they can available up to Rs 2 lakh under section 24 (b) of the Income Tax Act, 1961. Taking a home loan is a major financial decision of life and it’s important for the borrower to check wherever possible to save money and then make an application.

Online applicants can avail interesting deals as well.

A few reasons why EMI calculator has proved to be a boon for the people

There are a number of banks and NBFCs (non-banking financial companies) in India which provide financial assistance in the form of loans. The people can make use of these loans in order to take care of their business as well as personal needs. The housing loans have proved to be quite quintessential in relieving the worries of the common man. The middle-class citizens of India can now dream to own a place of their own, thanks to the housing loans provided by banks and NBFCs (non-banking financial companies).

People can make use of the home loans in order to buy a new plot or residential property and even to refurbish any pre-existing property. The financial institutions give out secured loans and charge interest rates on the loaned amount. An EMI Calculator comes in handy in these situations, as it helps you to calculate the equated installments which you would have to pay out every month.

An EMI (equated monthly installment) is calculated after combining the principal loaned amount, interest rates on the amount and the tenure of repayment. Your monthly installment is drastically affected by the changes and the choices that you make in either of the variables. For e.g., if you choose to opt for a shorter tenure then you will have to pay lower interest rates but the same is applicable in case you want to switch for a longer tenure. Thus, an EMI Calculator helps you significantly, as it gives you an insight as to which plan is best suited for you.

This calculator is available online and can be used by anyone and at any given time. The fact that people can make use of this tool from their phone or laptops has proved to be a great boon for the people. EMI Calculator has helped people to save their valuable time; which is otherwise wasted on making multiple bank visits.

The various advantages of making use of an EMI (equated monthly installment) calculator are as follows:

1) By making use of this calculator you can get your future installments calculated in advance. Thus, you can plan your future repayment schedule in advance and ensure that you never default on any repayment. This will help you to maintain a good credit history and live a hassle-free life.

2) An EMI Calculator is not just available for the calculation of a home loan installment amount. There are a number of other loans which can be calculated by making use of an online EMI (equated monthly calculator). The various other loans which can be calculated are education loans, personal loans, etc.

3) You can calculate and achieve multiple results for a certain principal amount that you borrow from the financial institutions. This gives you a rough idea about the various options available in front of you. Therefore, you can make use of this tool and choose the repayment pattern which is best suited for you. Hence, by making use of this tool, you can borrow loans without worries.

A few important factors regarding EMI calculator

The costs of residential properties in India have sky-rocketed in the recent years. Therefore, the middle-class population often finds it difficult to own a property of their choice. Most of the times, people even find it difficult to find a shelter over their heads and have to reside in rented properties. However, thanks to the various home loans provided by banks and NBFCs (non-banking financial companies), people can buy a house, which they always wanted to buy.

The interest rates provided by these banks and NBFCs (non-banking financial companies) are way lower when compared with the interest rates provided by the traditional financiers. Most of these financial institutions have even started giving out their loan services online, and have also started empowering people with various tools such as EMI Calculator. These tools make the loan process easier for the people and encourage them to apply for a home loan.

The reasons why people are opting for home loans are as follows:

Ø The housing loans given out by banks and NBFCs (non-banking financial companies) provide financial assistance to people, in the form of capital. People can make use of this money in order to buy a new property or refurbish their previous property. They can even buy a plot of other property of their choice.

Ø There are special discounts on interest rates given out to women in India. This empowers the female population and encourages them to live independently. Also, the interest rates of home loans for non-resident Indians are the same as the interest rates for resident Indians.

Ø The repayment of the loan amount is done in the flexible form of EMIs (equated monthly installments).  The banks and NBFCs (non-banking financial companies) also provide EMI Calculator to people, so that they can plan their future repayments in advance.

An EMI (equated monthly installments) calculator is an online tool which calculates your monthly installments in advance. All you need to do is put in your principal loan amount and the repayment tenure you wish to opt for. Thus, by making use of the following pieces of information, your interest rates are calculated and an equated amount is given out. This helps you to plan out your repayments so that you don’t end up defaulting on a payment.

The various advantages of making use of EMI calculators are as follows:

1. These calculators are way more convenient to avail as you can make use of them on the go. Making use of these tools is as easy as grabbing a bite, all you need is a phone or a laptop and a good internet connection. Therefore, you end up saving a lot of time which is otherwise wasted making those endless bank visits.
2. An EMI Calculator is user-friendly in nature and can be used by anyone and everyone. They are specifically made in order to cater to the masses. Hence, all you need in order to make use of this tool is your principal loan amount and the tenure which you are opting for.