Not many people can buy a property upfront with their saved funds. Purchasing a house requires a large sum, which you might not have in your savings accounts. It does not mean you will wait indefinitely to purchase a house. You can apply for a house loan and accumulate the funds required for purchase. However, you should plan your finances before buying a house via a loan.
Since you have to pay home loan EMIs, financial planning is a must. Most people prefer an online house loan EMI calculator for financial planning. Read on to understand how a house loan calculator makes financial planning easy.
Are you aware of an online house loan calculator?
With advancements in the loan industry, most processes have gone online. People do not have to visit multiple offices to secure a housing loan in 2023. A reliable NBFC can allow you to apply for a home loan online. Similarly, borrowers can access the online house loan calculator available on top NBFCs’ websites. It is an online tool that can help with financial planning before availing a home loan. The calculator allows you to enter the loan details and check for the instalment payable every month.
The online calculator has sliders to adjust the house loan amount, interest rate, and loan tenure. Individuals can enter different values and see the payable EMI every time. With an online EMI calculator, borrowers can know the EMI amount beforehand. It can help them plan their expenses or reconsider their loan options. If the EMI amount seems high, the borrower can apply for a reduced loan amount. The online EMI calculator also allows users to access the EMI schedule for the entire loan tenure. This can be done for free without interacting with a house loan agent.
Role of EMI calculator in financial planning for a house loan
Here’s how a home loan EMI calculator helps with financial planning:
It helps choose the right house loan provider
There are multiple lenders offering housing loans across the country. So, it can be difficult for the borrower to choose the right house loan provider. An online EMI calculator can help the borrower choose the right house loan provider in simple steps. One can get to know the approximate housing loan interest rates offered by different lenders online. Enter the interest rates into the EMI calculator to know the total cost of the house loan. You can compare different house loan providers based on their interest rates. The lower the interest charge, the lower will be the overall cost of a house loan in India.
It helps choose the apt house loan amount
One cannot apply for a home loan without assessing the repayment capacity. What’s the point in applying for a house loan with EMIs larger than one’s monthly income? In such a case, the borrower will end up with a poor credit history due to non-repayment of the housing loan. One must know the house loan amount they will be comfortable with. There is no other way of knowing the right house loan amount besides using an EMI calculator. Enter different loan amounts into the calculator and check the EMI amount for each option. Once the EMI amount is within the monthly income, you are good to go. Ideally, one must try to keep the house loan EMI 50% or less of the monthly income.
It helps choose the apt house loan tenure
The house loan EMI depends on the repayment tenure. When repayment tenure increases, the house loan EMI might go down. On the other hand, a house loan with shorter tenure comes with high monthly EMIs. A home loan EMI calculator can help analyse the right repayment tenure before applying to a lender. It is crucial to note that the interest charge also increases with an increase in the repayment tenure.
It is an easy-to-use tool for financial planning
You don’t have to indulge in manual calculations for housing loan planning. The online EMI calculator is a free and easy-to-use tool for financial planning. One can know the entire EMI schedule for a house loan in a few seconds.
Conclusion
Before applying for a house loan, borrowers should assess their repayment capacity, existing obligations and income. A house loan EMI calculator can help them plan their finances without external help. You can use the EMI calculator on the top lending institution’s website for free. So plan for a house loan with the EMI calculator right away!
