There is a substantial demand for affordable housing and residential properties in India, which gets reflected in the overall home loan market. Especially with recent repo rate cuts by the Reserve Bank of India, which currently stands at 4%, home loan interest rates have also become more affordable. Due to the on-going demand and cost-effective mortgage rates, the home loan market will inevitably be witnessing an extensive growth of around 22% between 2021 and 2026.

Individuals planning to invest in real estates can be benefitted from the present market situation. Therefore, they can look for attractive schemes to make repayment easier. Financial tools like an online home loan EMI calculator comes as a great help to plan the monthly instalments and manage all the expenses accordingly.

Advantages of an EMI calculator

In order to elevate this process, financial institutions have the home loan interest calculator available on their websites so that individuals can calculate EMIs before availing of a home loan.

Following are some benefits a home loan EMI calculator comes with:

  • Easy and accurate calculation: An EMI calculator allows you to check the exact monthly instalment you need to pay based on the loan tenor and interest rate your preferred financial institution offers. However, it is advisable to compare different lenders since the interest rates usually vary from one financial institution to another.
  • Financial planning: One of the benefits of calculating EMIs before taking a home loan also includes keeping the consistency through the entire loan tenor. It allows you to plan your other expenses, handle previous liabilities and monthly budgets properly to avoid further liquidity crises.
  • Choosing the right tenor: Using a house loan calculator, you can also check the EMIs for the various loan tenors. This way, it gets easier to decide between a short-term and long-term loan depending on your repayment capacity.
  • Prepayments: Often, borrowers prefer to submit extra funds as a prepayment to reduce principal outstanding, and in turn, EMIs. In this case, you can conveniently check the EMI amount after deducting that particular sum without having to revisit the lending institution.

A home loan EMI calculator always comes in handy when you are planning to acquire a significant amount. Since the interest rates and loan tenor are some relevant factors that influence your loan EMIs, it is wise to compare and opt for one that you are comfortable paying every month. Here is how it works:

An EMI calculator involves three essential factors, such as loan tenor (N), principal amount (P) and monthly rate of interest (R). The formula is

EMI= [P x R x (1+R)^N]/[(1+R)^N-1]

Since there are multiple calculations involved to get the equated monthly instalment, financial institutions have introduced an online home loan calculator to expedite the process.

With the launch of several schemes and pre-approved offers by renowned HFCs, financing has become hassle-free and less time-consuming these days. These offers are also available on several financial products such as home loans, loans against property, etc. Therefore, make sure to check your pre-approved offer by submitting basic details like your name and contact number before making a decision. 

Availing a sizable amount to build a house involves keeping several aspects in mind, including the loan eligibility benchmark. Therefore, it is advisable to look out for factors that might affect your home loan eligibility criteria to avoid loan rejections. While the affordability and flexibility in the repayment process depends on these norms, a home loan EMI calculator ensures that you choose the right lender to maintain your financial liabilities smoothly. 

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