An individual planning to purchase a house spends months planning before applying for a home loan. The plans include checking the eligibility, the repayment tenor, the list of documents, and the most important one- the EMIs. One can calculate their EMIs or get an idea of the approximate amount with the help of an EMI calculator for a housing loan.
What are the advantages of using an EMI calculator?
Here are the benefits of using an EMI calculator for housing loan:
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Quick calculations
Calculating EMI manually typically takes hours. Hence, borrowers can use a house loan calculator to check the selected variable in a fraction of a second by entering various loan amounts and repayment tenors. They don’t need to double-check while using the online EMI calculator, either. Home loan EMI calculators are quick, easy, and precise.
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Accurate results
There should be no room for error regarding home loan planning. A manual computation could take a long time and occasionally produce incorrect results. Instead, utilize the housing loan EMI calculator to determine the precise EMI. It consistently displays accurate results.
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Aids in financial planning
Knowing their loan’s EMI in advance will help borrowers avoid future financial difficulties. In addition, they can efficiently plan their budget thanks to it.
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Helpful for managing loans
Borrowers could occasionally have extra money to prepay when making EMI instalments. One can use a housing loan calculator online to interpret their financial situation and determine how a prepayment will help repay the loan before the due date.
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No need to provide personal information
Borrowers don’t have to worry about security concerns while using an online home loan EMI calculator because they don’t have to expose their identity. The housing loan interest calculator is secure because it doesn’t request any delicate personal data.
Now that individuals know the benefits of the EMI calculator for housing loans, they should also be aware of how it is calculated.
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How to calculate housing loan EMI?
Individuals wondering how to calculate housing loan EMI can do it use the online calculators, MS Excel sheets, manually using the formula. The formula to calculate it is:
P x R x (1+R) ^N / [(1+R) ^ (N-1)]
Here, the principal amount is P, the repayment tenor is N, and the rate of interest is R.
Apart from knowing the benefits of using an online EMI calculator, borrowers should also be aware of the entire home loan process.
Besides these, borrowers should also know the home loan process since it helps in streamlining it.
- The first step is to fill in the application form by entering the necessary details. Borrowers should also know whether to apply online or offline since it can be done both ways and it entirely depends on them and their suitability.
- Then, upload the documents required for a home loan.
- The lending institution will verify and process the uploaded documents.
- A sanction letter will be provided.
- Pay the secured fees to the lender after signing the sanction letter
- The lender will conduct a legal and technical check before final disbursal
- The final step is the loan agreement and disbursal
Further, borrowers would be delighted to know that several financial institutions provide pre-approved offers to their customers. One needs to enter their names and contact numbers to check their pre-approved offers. These accelerate the loan process and are available on various products like home loan and loan against property.
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Borrowers should use EMI calculators for a housing loan before applying for it to manage their finances better and avoid any chances of defaulting.
