Home Loan Calculator: Instant And Accurate Tool For Borrowers

Dec 26, 2022

4 min. Read

Home Loan Calculator: Instant And Accurate Tool For BorrowersHome Loan

Home Loan Calculator: Instant And Accurate Tool For Borrowers

Home is where happiness resides. A place where the laughter of your loved ones echoes in your heart and mind…to remind you that this is the place where you need to be…that this is the place where you belong. It’s a dream that many embark to achieve, but the financial constraints and overpricing stop them midway. This is where home loans come into play. A home loan allows you to buy your home without the financial burden to pay the Entire amount at once. But with ease comes a lot of confusion and misgivings. Is taking a home loan a wise decision? Will I get stuck into the debt trap? What will the EMI be? What if the interest rate is high, etc. Worry not, for this is why exists, home loan calculator; a tool to dispel your doubts and confusion. Let’s find out…

What a home loan calculator is and what is its function

A Home Loan Calculator is a simple online tool that helps any borrower calculate Home Loan EMIs. This mathematical tool is available to be used for free by everyone. A Home Loan Calculator tells you the amount you will have to pay each month in the form of EMIs if your loan is approved.

It is a great tool to use to plan a Home Loan because it allows you to calculate the cost of the loan and shows you how much you will be paying for your loan over a certain period of time. It also has the feature of ‘Home Loan Calculator with prepayment’ which lets you know your EMI amount with respect to your prepayment. Home Loan calculator with prepayment is a helpful tool for you when deciding on the down payment.

‘Home Loan Calculator Eligibility’ is a feature that calculates your eligibility for a Home Loan. It uses information such as your age, income, CIBIL score, etc. and shows whether you will be eligible for a Home Loan. Home Loan Calculator Eligibility helps you find out whether you are eligible for a loan even before you apply for it.

How a Home Loan Calculator works

You can calculate your EMI using the mathematical formula, or you can use the most convenient online tool called the Home Loan Calculator. It will calculate not just your EMI but the rate of interest as well. A Home loan Calculator uses this mathematical formula too but since it is a calculator it gives you accurate results within seconds.

The principal amount is the amount of funds provided to you by the bank. The interest is calculated based on this amount. When you use a Home Loan Calculator, you need to fill out your principal amount and the loan tenure. The calculator then processes this information and shows you the exact amount to be paid monthly in EMIs and also lets you know the time period, or the tenure of your loan.

Different banks have different Home Loan Calculators. Some banks have slider calculators. All you need to do is slide the bar on the calculator to adjust the principal amount, and the rest is calculated and shown on the screen. Some banks require you to feed information into the calculator by typing it out. In any case, a Home Loan Calculator is far more convenient than sitting down and calculating it yourself.

Get the lowest rate of interest using a Home Loan Calculator

The most important feature of a Home Loan Calculator is its ability to help you draw comparisons. Using a Home Loan Calculator, you can make a concrete financial plan by choosing the best available option.

A Home Loan Calculator is an essential tool if you are considering borrowing a loan. The financial planning that you can do using this calculator will help you save your money as well as your time. It will also allow you to build a concrete financial plan and think ahead of time. Use this calculator to your advantage and avail the best Home Loans.

Benefits of using a Home Loan Calculator

• Financial planning:
Using a Home Loan Calculator, you can plan for the long term. It will help you understand how you need to allocate your income to your expenses and how much money you need to set aside for monthly EMI payments. When you are already prepared for the upcoming expenses, there will be no delay or default in your payments, which will improve your creditworthiness. Improving your creditworthiness is always a good choice, especially if you need any more Loans later on.

• Choosing the right lender:
A Home Loan Calculator lets you choose the right lender by helping you find out which financial institution will offer the lowest rate of interest. Different banks offer different EMI options, and using a Home Loan Calculator helps you choose the best one.

• Pick the right Loan amount:
When you find out your monthly EMI amount using a Home Loan Calculator, you can evaluate how much money you really need. With varying amounts of EMI, you can decide whether you would like to borrow a larger or a smaller amount of money.

• Comparison of offers:
By calculating EMIs from different banks and finding out the different rates of interest, you can draw a fair comparison between the different lenders you are considering. After this comparison using the calculator, you can choose the financial institution that offers the lowest rate of interest and affordable EMIs with a comfortable Loan tenure.

• Choosing a suitable tenure:
A Home Loan Calculator will help you choose the right Loan tenure. The amount of EMIs varies based on the time period in which you will repay your Loan.You can reduce or increase the loan tenure based on your affordability to pay the EMIs.

• Eliminates the need for manual calculations:
Using a Home Loan Calculator allows you to accurately calculate the amount of your monthly EMI and rate of interest without doing any manual calculations. When you manually calculate your EMI, there are high chances of errors occurring. A Home Loan Calculator will not have any errors and will give you the result quickly, unlike manual calculations.

This article is authored by L&T Finance.

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