A home loan calculator is a tool available on the official website of the bank. The EMI calculator is a simple and easy tool to calculate the monthly installments of the loans. The bank charges the loan’s interest amount on a cumulative or, say, compounded annual basis; thus, calculating the EMI manually is a very complex and tedious process. Thus EMI calculator makes the process simple and easy. The EMI calculator helps an individual know the installment that is liable to be paid to the bank. The banks’ interest rates are on a continuous decline; thus, the loan proposal is becoming more and more attractive for the borrower. Banks charge home loan interest rates starting from 6.50% per annum. The bank’s repo rate is on a continuous decline; thus, the interest rates are also reducing. The repayment value also varies according to the tenure of the loans. The higher the tenure higher is the repayment value of the loans. Thus to save on the interest repayment, the borrower must opt for lower tenure as far as possible to save the money on interest repayment.
The home loan calculator helps an individual decide whether it is going to be affordable to avail loans from the bank or not. The home loan calculator helps to understand the eligibility of the loans, and accordingly, the decision can be taken. Along with the home loan installments, the bank charges processing fees, which the applicant should know. The home loan applicant is charged 1% of the total loan amount or Rs.10,000, whichever is lower. The bank charges the processing fees as the bank incurs a cost for the third-party verification of the documents, registration with the CIBIL, and physical verification of the property. The home loan calculator helps to understand the repayment value flexibly for the different tenures as well. Thus the tenure of the loans can also be planned according to the affordability and choice of the borrower. The decision-making for home loans is crucial. Thus, the applicant does not have to depend upon the bank officials for knowing the information about home loans; the borrower, at the convenience of the home, can check the information for the loans.
Following are the benefits of the home loan EMI calculator:
Helps in knowing the monthly interest rates applicable:
The EMI calculator helps in calculating the monthly installments being charged. Thus the borrower can get an exact idea about the amount the borrower has to pay to the bank for the monthly installments. The applicant can understand the affordability of the loans through the home loan EMI calculator.
Helps in choosing the tenure for the loans:
The borrower can choose the tenure of the loans as the EMI calculator helps analyze the repayment value and the monthly installments being charged according to the tenure being chosen. Thus the borrower understanding the monthly tenure repayment and the total value repayment can easily make decisions to choose the tenure.
Helps in calculating through accuracy:
The formula for calculating the home loan EMI on a compounded annual basis is critical as the formula for the calculation is complex. Thus the EMI calculator helps evaluate the tenure and the repayment value error-free, which can cause convenience to both the borrower and the lender. In any kind of financial transaction, it is necessary to evaluate the amount accurately to avoid losses to both the customer and the lender. The borrower can check the results with various permutations and combinations for the home loans free of cost.
The borrower can also decide the loan tenure for the loans by trying various combinations to know the monthly installments and the banks’ repayment value. Thus we can conclude that the EMI calculator is very beneficial for an individual to calculate the loan installments accurately & precisely without any error. Also, the process for calculating the EMI is simple and less tedious.