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Probably, the person who aspires to build a new house would have planned for months before applying for a home loan. Priorly planning, doing a lot of legwork, and research helps to avail of housing loans at the best deal from leading lenders in the market. As part of the home loan planning process, the EMI calculation is a must to find the interest rate of your home loan. Checking the loan EMI beforehand will help you find your capability to repay the loan. Also, you can request the lender for an amount convenient for you to pay off within the predetermined repayment period in the form of monthly EMIs without jeopardizing your financial health. Using an EMI Calculator Online will help you calculate your tentative EMIs easier within a while.
Read on to know the benefits and working structure of home loan EMI calculators.
What Are The Features Of The Home Loan EMI Calculator Online?
The Home loan EMI calculator is a free online effective tool used to find your home loan EMI.
The following are the features of using an EMI calculator to know your Home loan EMI:
1:Easy-to-Use
The home loan EMI calculator tool is easy to navigate and allows you to use it to find your home loan EMI instantly from anywhere at your convenience. The home loan EMI calculator employs the basic EMI calculation formula that is EMI = [P x R x (1+R) ^n] / [(1+R) ^ n-1], where the P stands for the principal loan amount, R is the rate of interest of the loan and N is Number of monthly installments. However, the Home loan EMI calculator eradicates the need for calculating manuals.
You need to provide the following information to know the EMI:
- Enter the home loan amount you want to request from the lender.
- Select the repayment tenor of your choice without overextending the lender’s maximum tenor.
- Next, select the current home loan interest rate.
By using the given information, the results will contain the following factors:
- It shows a tentative home loan EMI amount.
- The principal component of the total repayment amount.
- The interest component of the total repayment amount.
- The tentative repayment schedule is predicted based on provided variables.
2:Accurate Home Loan Calculations
A major advantage of using the home loan EMI calculator is that it delivers error-free results. The outcome of a digital EMI calculator is more accurate than manual calculation. Also, the digital EMI calculator will provide you with the result in a fraction of a minute.
All you need to do to get the output is to enter the following key input:
- Your preferred home loan amount.
- Desired Repayment tenor.
- Current home loan interest rate.
With the help of these variables, the tool will calculate the EMI calculations instantly and more accurately. Also, you can change these variables and check them countlessly to pick the best-suited budget-friendly EMI amount.
3. Cost-Benefit Analysis
It also aids in cost-benefit analysis for home loan borrowers. You can give limitless tries to compute your desired results. Using a home loan EMI calculator, You can test what different lenders offer in terms of EMIs and how satisfactorily it fits into your budget Also, you can compare with the offers provided by various lenders to pick the affordable home loan.
What Are The Benefits Of Using A Home Loan EMI Calculator?
Speedy Calculations:
Usually, the manual calculation of EMI will take hours. Instead of manually calculating the Home EMI by entering different loan amounts or repayment tenors, you can use an online Home loan EMI calculator to check the preferred variable in a blink of an eye. Also, there is no need for you to double-check while using the online EMI calculator.
Home loan EMI calculators are convenient, instant, and accurate to use:
When it comes to planning for a home loan, there should be no room for inaccuracy. A manual calculation may be time-consuming and the output may be wrong in some cases. To know the accurate EMI, use the Home loan EMI calculator. It shows you the right results every time.
Financial Planning:
Finding the EMI of your loan priorly will help you escape future financial crises. It enables you to plan your budget effectively.
Useful for loan management:
With making EMI payments, sometimes you may have additional funds to prepay. If you want to examine the financial data and locate how the prepayment will assist you to repay the loan before the deadline, you can use a home loan EMI calculator online.
No need for personal details:
While using an online home loan EMI calculator, you don’t have to bother about security issues as there is no need to reveal your identity. The home loan EMI calculator is safe as it doesn't ask for sensitive or confidential personal information.
FAQs of How Home Loan Borrowers Can Benefit from the Home Loan EMI Calculator
1:How does paying my home loan EMI aids in reducing tax obligations?
To lessen the loan burden and inspire people to buy and invest in properties, the Indian Government offers various home loan tax benefits. For instance, Section 80C of the Income Tax Act, 1961, enables home loan borrowers to claim tax deductions of up to Rs. 1.5 lakh on the principal amount repaid via your EMIs yearly. Furthermore, According to Section 24b of the Income Tax Act, the home loan borrower can claim tax deductions of up to Rs. 2 lakhs on interest paid during the financial year.
2:Is GST applicable to home loan EMI?
Goods and Services Tax (GST) is not involved in home loan EMI. But it applies to other home loan charges like the processing fees, late payment charges, and prepayment charges.
3:Who is eligible to avail of a home loan?
The eligibility for a home loan is for salaried people employed in the government and private sector, Self-employed people running the business, and professionals like doctors, engineers, architects, chartered accountants, etc.
4:What is meant by Home Loan Pre-EMI?
Some lenders may disburse the home loan amount in stages. In such cases, you should start paying your EMI only when you receive the whole loan amount. Until then, you have to pay interest for partly disbursed amounts. This concept is known as pre-EMI. After loan disbursement, the pre-EMIs will stop, and paying regular EMIs continues.