How to Use a Home Loan Calculator to Calculate EMIs for Updated Interest Rates – Explained!

One of the best ways to prepare for financial commitments the size of a home loan is being aware about the estimated EMI you must meet during the home loan repayment tenure. For precise computation, a housing loan EMI must be utilised as it can help you to figure out a rough repayment plan, and a vision to fasten up for your financial future. Remember that a housing loan EMI calculator is an online instrument designed with the purpose to ensure instant calculation, user friendliness and ease to toggle distinct constituents such as home loan interest rates, repayment tenure and loan proceeds on the calculator to be aware of the possible loan repayment schedules. Once you compute the optimal home loan EMI and tenure via the calculator, you can simply move ahead with the home loan application.

As most banks have increased their housing loan interest rate due to an increase in repo rate to 4.90%, you may be looking to compute your latest home loan EMI. Don’t worry, you can use the home loan calculator for this purpose.

Read on to know the important benefits of a housing loan EMI calculator

Actual EMI forecast – One of the major features of housing loan calculators is that it provides you with an accurate EMI figure that you must repay based on your outstanding loan amount, interest rate and tenure. Also, the tool provides a rough breakup of the loan proceeds – showing the constituents you must repay as interest and principal component.

Error free calculation – When you conduct the home loan EMI calculation manually, there is a scope for human error. By using the home loan calculator, you can easily eliminate such manual mistakes as the data computed through the calculator is accurate and error free based on the details provided by you. Also, it endows you with an idea about how you should plan your finances in case you are looking to avail a home loan.

Comparison amongst lenders – A home loan calculator not just allows you to understand your chances of securing a home loan but also permits you to strike comparison amongst various home loan lenders. It assists you to choose a lender according to your suitability.

Make a financially prudent decision – Your home loan EMI is impacted by distinct parameters like home loan interest rates, tenure, and loan amount. Suppose you select a higher repayment tenure, your EMI would be lower and vice versa.

An EMI calculator is customised in nature where distinct loan combinations using interest rate, loan proceeds, and repayment tenure can be easily tried to figure out an optimal loan EMI and repayment tenure depending upon your budget.

Bottom line

To avoid financial issues, conduct realistic assessment of your repayment potential and prudent planning, you must use a housing loan EMI calculator. This is a tool that offers you the estimate about your repayments depending upon your repayment potential. Note that this tool provides an accurate outcome depending upon the details you input.