FAQ’s About A Housing Loan EMI Calculator In India

Most finance savvy borrowers would like to understand how the home loan EMI calculators function, what information they offer and how this information can be used to the best of its advantage, So, check out the most frequently asked questions by Indian borrowers to get the maximum out of these EMI calculators.

What is an EMI calculator?

The perfect home loan EMI calculator is certainly not a basic home loan calculation in an excel sheet or a basic calculator in itself. It is a smart way to understand this multi-dimensional financial product that you used to buy your home and repay over a period of 20 to 30 years. Therefore, don’t look at it as just a way of calculating your monthly home loan EMIs since it is a system to understand multiple aspects of the housing loan.

What are the pros and cons of an EMI calculator for home loan?

The main advantage of the EMI calculator for home loan is that it helps you to understandhow different aspects of the home loan affect your interest rate, principal amount and the EMIs. It is a complex home loan calculation. This calculator acts as the simplifier and allows you to see the impact of any or all changes on the multiple aspects of the home loan.

On the other hand, you must enter the right loan amount; which may be difficult to anticipate for most borrowers, who haven’t finalized the property and lender details. In addition, understanding the range you can afford may not help you much if your credit score is too low or repayment ability is not right to receive that kind of a house loan offer. So, practical understanding of the basic range is essential till you receive a home loan offer.

How do I use the housing loan EMI calculator to my advantage?

Before you begin your home loan calculations, you must know the loan amount clearly. Since this amount is going to be different than the basic cost of the property, you need to be sure about the other involved expenses too, since it will help you to get the most out of a housing loan EMI calculator in India . It will help you to identify the range of interest rates that you can afford every month for the foreseeable future along with a suitable tenure. It will also assist you with the amortization table that can offer some unique insights in the repayment options, which you may consider rather than the standard repayments. But, you must remember that the amortization table does not show you the EMI proceedings for the different repayment options, though.