Equated Monthly Instalments or EMIs are fixed payments made by a borrower to a lender on a fixed date each month. The EMI is calculated by adding the principal amount and the interest payment and dividing it into equal monthly payments over the tenure of the loan. Home loans are long-term loans with tenure ranging from 5 years to 25 years. A longer tenure helps reduce monthly EMIs.
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EMI stands for equated monthly instalments. A home loan EMI calculator gives a clear understanding on the amount the borrower must make each month towards home loan repayment. A good credit score can help secure a higher home loan amount.
However, borrowing more than your repaying ability can lead to the debt trap. With a home loan EMI calculator, you have real-time information on home loan EMI outgo, each month. Consequently, you can decide the amount of money you must borrow based on your debt to income ratio. A home loan EMI calculator helps the borrower make better financial decisions and avail a loan amount within repayment capacity.
It’s a great idea to calculate home loan EMIs, prior to availing the home loan. It helps you know the monthly cost of your home loan. Depending on your EMI, you can make a monthly budget to clear your loan payments on time and avoid piling up debt. You can enter the value in the respective field and depending on the output; you can adjust the loan amount and tenure to maintain a low debt to income ratio. A shorter tenure helps clear your loan faster, whereas a longer tenure will help reduce your monthly home loan EMI burden.
The home loan EMI calculator works on the following inputs:
See Also: Tips For Home Loan EMI Repayment
A home loan EMI calculator saves time as you do not have to deal with complex and time-consuming loan calculations. You can calculate your home loan EMI simply by visiting any online loan website and accessing the home loan EMI calculator. The process is very simple as you only need to enter the loan amount, tenure and interest rate and the output will be displayed instantly.
You can make an informed and better financial decision with the help of online home loan EMI calculator. Once you know the amount of money you have to pay as monthly instalments by availing a certain amount of home loan, you will be able to decide the loan amount based on your repayment capacity.
See Also: Home Loan Interest Rates Rising
Unlike manual calculations, home loan EMI calculator helps you accurately evaluate the home loan EMIs.
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