Why Home Loan Calculators Are Necessary In India?

Home loan calculators available in India are of two types namely, eligibility calculators and EMI calculators. All financial institutions provide their customers with these calculators to help simplify the entire home loan process from the application to the repayment stage. Each calculator can be used for a variety of needs and have a number of benefits.

Home loan eligibility calculator

This calculator is used by individuals who plan to apply to a financial institution for a home loan. Even before the application is sent in, this calculator is used to find out how much loan the individual is eligible for. The calculator takes into account the individual’s monthly income, age and the percentage of interest they are willing to pay and the tenure of their choice. Once the amount is calculated the individual has an idea as to how much loan they are eligible for and if required can take steps to be eligible for a higher loan amount. The calculator helps ensure that the individual’s home loan application has a higher chance of being approved. In the cases where the individual wishes to apply for a home loan amount which is higher than what they are eligible for, they can take steps like getting another earning family member to co-sign the loan or improve their credit score. Without this home loan calculator in India being available, the number of home loan applications rejected would be higher.

Home loam EMI calculator

This calculator provides a number of benefits for the borrower. Once the home loan application has been approved by the financial institution, the individual has to start planning on how to repay the loan. This calculator takes into account the principal loan amount, the interest charged and the tenure of the loan to calculate the monthly EMI. Having this knowledge in had allows the borrowers to plan and take steps to ensure that they make their payments on time. The EMI calculator can also be used by those who have opted for a floating interest rate. The calculator helps then calculate in advance the different possible EMI amounts that they may have to pay based on changes in the interest rate. The type of a home loan calculator in India helps one not only plan their finances but also calculate the correct amounts to ensure no defaults occur.

Home loan calculators in India provide a huge amount of help for the financial institutions’ customers who may have trouble calculating their loan amounts and EMIs. It helps ensure quality loan applications and on time payment of EMIs which is a huge benefit for both the borrowers as well as the financial institutions that provide the loans.