Here’s The Perfect Tool To Plan Your Top Up Home Loan
When you are looking to avail of a Top Up Loan on an existing loan, you might want to consider a few things. First and foremost would be your eligibility, and then the EMI amount and the tenure. Even though you may have been repaying your existing loan for a considerable period of time, an estimation of the added cost and time span can help you take a realistic decision. And that’s where a Top Up Loan Calculator can help you.
Top Up Loan Calculator
A Top Up Loan Calculator is a useful tool that allows you to check your Top Up Loan EMI, eligibility, and interest rates, as well as the loan tenure. Most banks' websites include a Top Up Loan Calculator. A Top Up Loan Calculator is additionally searchable online using Top Up Loan Calculator Eligibility, Top Up Loan Calculator EMI, Top Up Loan Calculator Interest, Top Up Loan Calculator with the name of the bank, etc. It is fairly easy to use. Just enter the loan amount you need to borrow, choose the tenure (the number of years or months you need the loan for), and the Top Up Loan Calculator will automatically calculate the interest rates and give you an estimate of your EMIs.
How Does a Top Up Loan Work
In a scenario where you have exhausted your existing home loan and there is a requirement where you either need to get the interiors of the house refurbished or want to get any repairs done, you can approach your bank and request a top-up on your existing home loan. The bank has the right to verify the requirement of a Top Up Loan and basis the eligibility of the customer, they may approve or reject the Top Up Loan application. Once approved, the Top Up Loan amount gets credited to your account and you are liable to honour the new EMI structure from the preceding month.
How to Use a Top Up Loan Calculator?
A Top UP Loan Calculator is an easy and convenient tool, available on the lender’s website. You must enter the following information in the calculator to utilise a Top Up Loan Calculator:
a. Loan Amount Requested
This term refers to the loan amount requested by the borrower when they submitted their loan application.
The tenure of a loan is the period of time in which the loan must be repaid. Home loan terms are typically longer. You can request a longer term during the loan application process, allowing you to repay at your own pace. Your monthly EMI amount will be determined by the length of the loan.
c. Salary/Net Income
Your net salary is your take-home pay or income after all deductions, including taxes and investments. It replenishes your available funds.
d. Monthly Commitments
This term refers to a prospective borrower's fixed monthly financial commitments, minus statutory deductions such as Provident Fund, professional tax, and investment deductions such as insurance premiums and recurring deposits. Monthly obligations also include loans that were obtained but are not mortgages. Paying the EMI on a house loan becomes a monthly requirement once it has been approved. For instance, some banks and lenders have processes in place to determine a borrower's eligibility for a home loan.
e. Property Price
This phrase refers to the cost of purchasing an asset as well as all of the expenses associated with preparing a specific property for its intended use.
f. Remaining Loan Principal
This is the principal amount that must be repaid, minus any interest. Simply put, if you took out a loan for Rs. 1,000,000, your loan principal is also Rs. 1,000,000. This interest is calculated separately and is not included in this calculation. If you must pay an EMI of Rs. 10,000 per month, for example, the principal amount will be deducted from the outstanding loan amount.
g. Existing EMIs
EMIs are currently used to pay off a portion of the principal as well as the interest. The existing EMI is the monthly payment for loan repayment that you were required to make.
To use a Top Up Loan Calculator you can visit your lender’s website, then go to the relevant Calculator page, feed in the correct details, and the result will be instantly calculated for you.