Opting for a home loan is a huge financial decision and using an EMI Calculator before applying will ensure the road out of debt is a smooth one. If you haven’t heard of these online calculators or never thought of using one, then this article will highlight 4 reasons why you absolutely need to use one before you sign upon the dotted line of your home loan application form.
1. Know your repayment schedule.
It’s vital to know roughly just how much your EMI will be before applying for a loan. It will help you chalk out plans to accommodate your EMI payments within your monthly expenditures and help ensure you are well prepared to handle these payments.
Previously, knowing your EMI amount meant setting aside a good amount of time and sitting with a pen and paper or before an excel spreadsheet. Either way, you’d have to flex your mathematical skills to accurately determine the monthly outgo against your home loan.
However, times have changed and you can now use and EMI Calculator to get your entire repayment schedule in a snap. Just punch in your loan variables; the loan amount, the tenure and the interest rate – hit enter and you’ll be provided with a complete amortization table.
2. To know if you can afford to borrow the loan amount or not.
Whether or not you can afford to borrow a given loan amount boils down to whether or not you can afford to pay the EMI. So you hop onto the internet, find and EMI Calculator and get it to provide you the EMI for your loan. If the EMI is too high, it means you cannot afford to borrow that amount.
If you were to borrow a loan amount you cannot afford, most lenders would reject your application. This will result in you losing your processing fee and even cause your credit score to drop.
3. To know the loan amount you can afford.
So if the EMI amount is too high, you cannot afford to borrow that much. However, if you keep reducing the loan amount until the EMI provided is within your financial reach, you will arrive at a loan amount you can borrow keeping in mind your financial abilities at the moment.
4. Using an EMI calculator aids faster approvals.
If, after using an online calculator, you still apply for a home loan it could mean one of two things; the first being that you can afford the EMIs and the second being that you’ve adjusted the loan amount until the EMI amount provided was within your financial reach. Either way, it means you are applying within your mean and seeing this, most lenders should approve your loan quickly.
So there you have it, 4 important reasons why you should use an EMI Calculator. Besides for the above reasons, these calculators save immense amounts of your time and energy; the best part is that they are also free to use and will provide you near-accurate results without any cost!1. Know your repayment schedule.
It’s vital to know roughly just how much your EMI will be before applying for a loan. It will help you chalk out plans to accommodate your EMI payments within your monthly expenditures and help ensure you are well prepared to handle these payments.
Previously, knowing your EMI amount meant setting aside a good amount of time and sitting with a pen and paper or before an excel spreadsheet. Either way, you’d have to flex your mathematical skills to accurately determine the monthly outgo against your home loan.
However, times have changed and you can now use and EMI Calculator to get your entire repayment schedule in a snap. Just punch in your loan variables; the loan amount, the tenure and the interest rate – hit enter and you’ll be provided with a complete amortization table.
2. To know if you can afford to borrow the loan amount or not.
Whether or not you can afford to borrow a given loan amount boils down to whether or not you can afford to pay the EMI. So you hop onto the internet, find and EMI Calculator and get it to provide you the EMI for your loan. If the EMI is too high, it means you cannot afford to borrow that amount.
If you were to borrow a loan amount you cannot afford, most lenders would reject your application. This will result in you losing your processing fee and even cause your credit score to drop.
3. To know the loan amount you can afford.
So if the EMI amount is too high, you cannot afford to borrow that much. However, if you keep reducing the loan amount until the EMI provided is within your financial reach, you will arrive at a loan amount you can borrow keeping in mind your financial abilities at the moment.
4. Using an EMI calculator aids faster approvals.
If, after using an online calculator, you still apply for a home loan it could mean one of two things; the first being that you can afford the EMIs and the second being that you’ve adjusted the loan amount until the EMI amount provided was within your financial reach. Either way, it means you are applying within your mean and seeing this, most lenders should approve your loan quickly.
Good luck and all the best!
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