Home loans allow borrowers to build an asset while paying for it in a convenient and stress-free manner. Credit issuers make a profit on loans by charging interest on the loan amount. The current home loan interest rates start from 7% p.a., making home loans the cheapest loans available today. Unfortunately, not everyone who applies for a home loan in India gets approved for one. Applicants must meet their lender’s home loan eligibility criteria to be eligible for a loan. Further, since home loans are secured by the property which the borrower has bought with the loan money, one must take these loans after careful planning as loan default can lead to a lender selling the pledged property for recovery of the loan money.
Anyone planning to apply for a home loan in India must use a home loan EMI calculator to plan repayment. A home loan EMI calculator is a handy tool that almost all lenders host on their websites. Using this tool, home loan applicants can calculate their EMIs in advance pertaining to the loan amount they plan to take. The home loan EMI calculator is quite easy to use. Home loan applicants and borrowers must provide only three details – desired loan amount, desired loan tenor and the rate of interest offered – and the calculator gives the borrowers their tentative EMIs. Let us now look at the benefits of using a home loan EMI calculator.
7 Reasons You Should Use a Home Loan EMI Calculator
The home loan EMI calculator is an easy-to-use tool. Its user interface is so simple that anyone who has a basic understanding of how the internet works and has a smartphone or tablet or laptop can use it to work out their EMIs in advance.
The home loan EMI calculator tells borrowers their monthly EMIs in advance. As soon as an applicant enters information in its three fields, the calculator shows them their tentative EMIs. Once an applicant knows their tentative EMIs, it is easier for them to understand whether they can afford to take the loan they plan to take.
Since this calculator tells potential applicants their EMIs in advance, it allows them to plan repayment. Once borrowers know their EMIs, they can make changes in their monthly budget and the way they spend their money to ensure they can easily repay their monthly EMIs.
Further, the home loan EMI calculator tells borrowers the loan amount they are eligible for. Applying for an amount one is eligible for ensures quick approval and a hassle-free loan application process. Applying for an amount higher than one is eligible for leads to loan rejection, which in turn, affects one’s credit rating. Thus, a home loan EMI calculator not only saves borrowers from having to pay late fees and penalties through proper planning but also protects them from having a bad credit score.
The home loan EMI calculator is quick. Thus, one can use this calculator to compare offers from different lenders. This helps borrowers choose the best loan offer for them.
This handy tool can also be trusted for accuracy every single time, which is not the case with manual calculations.
Using the home loan EMI calculator, borrowers can also plan pre-payments and understand how each pre-payment will affect their EMIs as well as their total interest pay-out on the loan.
Conclusion
A home loan EMI calculator is a smart and useful tool that can save borrowers from making many mistakes that they should completely avoid making, such as not comparing loan offers and going with the first lender that offers them a loan or borrowing more than one can afford. Therefore, all applicants must use this handy tool before applying for a home loan in India.
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