Know your EMI before you pay

At the age of thirty my friend was planning to buy a home, after getting his second promotion. His father suggested that it would be a good investment, because he is young enough to take a home loan and complete the loan tenure in time. Since, he had no experience of any kind of loan like education loan or any kind of personal loans so he was bit confused. He decided to do some online research work before jumping into the bandwagon of home loan customers. After combing through the aggregator sites he found that different financers offered different interest rates, some as low as 8.40%-11%. The loan term and the company terms and conditions also varied. Some promises from some financers seemed too good to be kept.

Amongst the various financers he chose few established institutes, as he was smart enough to understand that enticing figures would not be beneficial. After understanding the whole process the next factor he was concerned about was the EMI repayment. Because it would count almost 30-40% of his monthly expenditure, and a beforehand monthly figure of the EMI would be of great help. The solution to his concern was present in the official website of the financer- the EMI Calculator. It is an online calculator that would give the approximate value of the monthly EMI after entering the principal loan amount, annual rate of interest and the number of monthly installments.

He was very happy with the benefits of the EMI Calculator like:

• It gave the exact value of the EMI he has to pay against the principal loan amount. Unlike the traditional method of the physical calculations there is no chance of errors unless you enter a wrong value.
• With three simple inputs of the principal, interest and tenure you get the accurate calculated monthly EMI.
• The whole calculation is done within split of seconds.
• It’s a comprehensive tool, where you can try different combinations to find the best suitable value.
• This brilliant handy tool is a free online service.

This tool with the aforesaid benefits helped my buddy to choose the best suitable financer with a perfect home loan for his greatest personal accomplishment. He calculated his EMI with the online EMI Calculator and tailored his loan structure accordingly. Before he used this tool he was thinking of taking a maximum amount of loan by minimizing his down payment amount. But after using the calculator, he cut the loan amount and increased the down payment value fortunately; this helped him to cut short his interest cost.

The calculator provides an amortization table that gives a clear financial and chronological idea of the loan repayment structure. It is the debt repayment schedule for the entire loan term.

He was thinking of increasing his loan tenure owing to lower EMI cost, after calculating the interest cost for the maximum loan term he found that, though the EMI was low but the interest cost that he has to pay was much more than shorter loan term.

This home loan EMI Calculator proved to be a great friend in need. It guided my friend to set up his monthly budget accordingly gifting him hassle-free loan tenure. So as an existing home loan customer he suggests each potential borrower to use this tool beforehand for their own benefit without waiting for the financer’s declaration of the monthly EMI. You know your EMI beforehand yourself.