Your decision to buy a home for you and your loved ones is a monumental one, and thorough planning and preparation only bodes well for the exciting property prospects in store for you. While most of us meticulously save a portion of our incomes, it still may not be sufficient to fund a sizeable property purchase entirely on its own – but that should be no cause for you to worry, as your home-buying dreams stay just as achievable.
With the help of a suitable home loan, you can hope to buy any property you desire without the lack of funds being a concern. Your budget is supplemented through the sizeable home loan sanction, allowing you to pick the property you have your eye on and repay the loan amount at your ease.
Home loans today come with attractive benefits and add-ons that give you far more leverage when it comes to home buying. All an applicant needs to do is ensure that they meet the lender’s eligibility criteria to make the most out of their offerings.
How does one ensure that? One aspect of the home loan eligibility criteria is one’s financial profile, wherein the lender assesses income, ongoing obligations, and repayment capacity to gauge whether the applicant is a low-risk home loan candidate. The other aspect of your loan eligibility depends on your loan ask – the amount you wish to borrow, and how feasible it is in your current repayment budget.
To help you navigate how much you should ideally borrow and how well it will sit in your repayment capacity, you can consider using a house loan EMI calculator, relying on its accurate output. Ensure maximum home loan eligibility and secure favourable terms, such as a low home loan interest rate and a comfortable home loan tenor, by using the home loan calculator.
How Does the Home Loan EMI Calculator Help Your Home Loan Application?
Still confused about whether the EMI calculator for a home loan can help you in your pursuit of the ideal home loan? Here is how – through accurate results and predictions that help you plan your repayment schedule – a move that assures the lender of your repayment intent and helps you secure more competitive home loan terms. Let us first look at the easiest aspect of the home loan interest calculator tool – its ease of functionality. Here is how prospective applicants can use the EMI calculator to their benefit:
- Enter your desired principal loan amount into the calculator
- Enter your preferred repayment tenor in the next step
- Enter your preferred home loan interest rate in the last step
Based on the formula - P * R * (1+R)^N / [(1+R)^N-1], where:
- ‘P’ is the principal/the sum borrowed
- ‘R’ is the interest rate (monthly) at which you borrow the funds
- ‘N’ is the tenor/the number of months over which you will repay the sum
The calculator computes the following results based on the principal, tenor and interest variables you have provided, including:
- Your tentative EMI amount
- The total interest component of the repayment amount
- The total principal component of the repayment amount
- A link to a tentative repayment schedule
This allows you the foresight into the future of your home loan repayment and lets you plan your current finances accordingly. Based on these calculations, you can decide whether your current home loan ask is feasible for you, or whether you need to tailor it further to comfortably repay the sum to the lender.
Aside from this, the tool is free-to-use and completely online, which means that you can use the tool as many times as you want, to compute a variety of home loan repayment scenarios till you arrive at the ideal home loan plan.
Other Benefits Of Using Home Loan EMI Calculator
Through its accurate and speedy calculation, here are some ways in which using a housing loan EMI calculator helps your home loan application:
- Assists in lender comparison
- Enables practical repayment solutions
- Allows transparency in loan repayment planning
- Ensures convenience by eliminating manual errors
Eager to apply for a home loan? Don’t forget to use the home loan EMI calculator before to maximise your chances for a speedy housing loan approval and disbursal.
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