3 uses of a Housing Loan EMI calculator

A housing loan EMI calculator has been provided free of cost by financial institutions to their customers to allow them calculate their EMI with ease. The importance of using the tool rather than calculating the amount manually is the fact that it reduces the risk of calculating an incorrect amount. There are a number of uses of a housing loan EMI calculator:

Get the loan configuration of your choice

Besides the loan amount, the interest rate charged and the tenure of the loan also play a major role in the home loan repayment process. Hence before an individual sends in their home loan application to a financial institution it is important to use the housing loan EMI calculator to find out whether or not the home loan is affordable for the applicant. Since the repayment policy of for the home loan is strict as defaults can force the financial institution to sell the house to recover the loan amount. An applicant can use this calculator to find out what combination of principal loan amount, interest rate and tenure meets their needs.

Plan your finances

The housing loan EMI calculator primarily is used to calculate the EMI the borrower will have to pay to the financial institution each month. An applicant must use this tool before applying for their home loan so as to prepare in advance for the repayment procedure. Since a home loan puts a certain amount of financial pressure on the borrower keeping funds aside in advance can ease the burden. Knowledge of the EMI you will be required to pay each month will help you take steps like reduce their monthly expenditure and keep funds aside to repay the loan.

Calculating EMI correctly

Unlike calculating EMI manually, the housing loan EMI calculator is able to calculate your EMI amount accurately. Particularly in cases where the applicant has opted for a floating interest rate, using the EMI calculator is crucial. Since one cannot predict the interest changes, the calculator can be used to predict the possible EMI amount for the month. The applicant can use the calculator to predict an optimistic and pessimistic interest rate which can be used to calculate the EMI. This allows the individual to be prepared for any changes in the interest and not default on their loan repayment.

A housing loan EMI calculator is an extremely beneficial tool which can be used for a variety of purposes. It is a tool that must be used by home loan applicants to help simply the entire repayment process.