How to Use a Home Loan EMI Calculator Step by Step?
Home loan has come up as an ideal financing option that aids many people to fulfil their desire of owning or constructing a home. When it comes to the computation of EMIs, using a home loan EMI calculator makes sense. It is an online tool that enables borrowers to estimate their monthly instalments accurately. Furthermore, this calculator is easy to operate and is available on the websites of many lending institutions.
Steps to use the home loan EMI calculator
Borrowers applying for a home loan can adopt an online home loan EMI calculator by following the step-by-step procedure as discussed below:
Step 1: Navigate to the official website of a preferred lending institution
Step 2: From the loans section click on the ‘Home Loan’ tab
Step 3: Locate the EMI calculator page.
Step 4: Shift the pointers and set the loan amount, rate of interest, and tenor
Step 5: Crosscheck the numerals and click on ‘Submit’
These home loan EMI calculators are user-friendly and offer quick and prompt results. Additionally, they are free of cost, so applicants can operate them as many times as they need to without any obligation.
How to calculate home loan EMI?
Knowing the right amount to be paid every month helps an individual organise various other aspects of their monthly budget without hassle. Generally, the home loan EMI is computed in a mathematical formula based on three inputs comprising loan amount, interest rate and tenor.
The formula is:
EMI = [P x R x (1 + R)^N] / [1 + R)^N – 1]
Here, EMI represents the Equated Monthly Instalments, P signifies the principal or borrowed credit amount R denotes the interest rate and N stands for tenor.
While using this calculator is simple, computing the correct EMI amount manually is vulnerable to errors. Secondly, in a fast-paced life, using this calculator is a great way to save time.
This is why it is highly recommended to go to the official website of the preferred lender and use their home loan EMI calculator to check the EMIs and outstanding amounts.
Advantages of home loan EMI calculator
The benefits that make this online EMI calculator for home loans unique are as follows:
- Provides correct results
- Helps in comparing loan offers
- Verifies the repayment schedule of the lender
- Guarantees better management of loan
Now, after knowing how to use this online calculator, it is time for applicants to check the eligibility criteria for home loans.
Home loan eligibility criteria
Mentioned below are the eligibility criteria to avail a home loan for both salaried persons and self-employed individuals:
- Applicant must have Indian citizenship
- Age should be between 23 years and 62 years
- Borrowers must have a minimum of three years of working experience in a private or public company or MNC.
- Applicant should have Indian citizenship
- Borrower’s age should be between 25 years and 70 years
- The applicant must be at least 5 years of experience in a business field
If required, applicants can use the online home loan eligibility calculator to determine whether they have the eligibility to apply for this financing option. Furthermore, borrowers must ensure that they keep the necessary documents handy to avoid a last-minute rush.
Knowing how to operate a home loan EMI calculator can help streamline the application process for a housing loan for borrowers. Since loans are long-term commitments, it makes sense to learn about the entire process minutely. However, before applying for this loan applicants can compare multiple credit offers and choose the best one of them.