Having an owned house is everyone’s dream. Buying a house requires an adequate amount of funds. Dream of purchasing a house cannot be fulfilled without taking a loan. There are many banks and NBFCs providing home loans in India. When we talk about a loan, next thing we worry about is the resultant EMIs. Will the EMIs be affordable or not? Well, you need not worry about this at all as you can use the online home loan EMI calculator available free of cost to calculate the EMIs and check affordability. The home loan EMI calculator is an easy, fast and reliable source of information to calculate your EMI’s.
Advantages of using a home loan EMI calculator
- It saves your precious time
- You get accurate results
- It helps to plan your finances well
- You can see the exclusive home loan offers just for you
Home loan EMI calculator requires this following three input to calculate your EMI
• Loan Amount
• Tenure of home loan
• Interest Rate
Loan Amount: Loan amount is the amount of money borrowed by you to buy your dream house. The amount of loan that can be borrowed depends upon your eligibility and Loan To Value Ratio (LTV). The lenders apply an LTV to the fair market price of your property to be mortgaged to determine the amount of loan. Generally, lenders give an LTV of 65% to 80% depending upon the type of property. It is better to apply for a loan amount that you can easily repay in future. Loan amount has a positive relationship with EMI. Higher is the loan amount, higher will be the EMI.
Tenure: After entering the loan amount, next you have to choose the loan tenure. Home loan is a long-term loan which can be availed for a period ranging up to 30 years. You are free to choose the loan tenure as per your will, but remember the longer is the loan tenure you select more is the interest you will have to pay. Loan tenure has an inverse relation with EMI. Longer is the tenure, smaller will be your EMI. However, you can change the tenure in the EMI calculator to arrive at a pocket-friendly EMI.
Interest Rate: Home Loan Interest rate is the premium you pay towards your loan. After entering the loan amount and tenure in the home loan EMI calculator, you are required to enter the interest rate which is offered by your preferred bank. You can check and compare the home loan interest rates by through the website of different financial aggregators.
Once you enter the above-mentioned inputs in EMI calculator, you will get the entire EMI schedule within a fraction of seconds. So, use the online EMI calculator for better financial planning. It is very easy to use in comparison to the complex mathematical formula. With the help of an EMI calculator, you can check and compare offers and select the one which suits your needs.