Home Loan EMI means Equated Monthly Installment. Popularly known as monthly installment. EMI includes the principal plus interest a borrower has to pay each month to the bank.
How to use EMI calculator for home loan ?
A home loan calculator helps you to know the exact amount of your home loan EMIs that you have to pay to your home loan. Using a home loan calculator is really simple. In just 3 simple steps you can know the exact EMI amount.
Step 1) Enter the loan amount you need like 5 lacs, 10 lacs, or whatever loan amount you want to take from the bank.
Step 2) Select the Rate of Interest.
Step 3) Enter Loan Tenure like how many years you want to take the loan for. You may enter the duration in months as well.
Once you enter all the above information EMI calculator will evaluate your monthly EMI, total Interest payable, and total payment which will include principal as well interest.
Once you are satisfied with loan EMI, you can directly apply for home loan by clicking
Apply Now.
How does EMI calculation help in planning the home purchase ?
Well, the Home Loan EMI Calculation helps you to know the exact amount you need to pay every month as a monthly installment. Once you know how much you have to pay then you can plan your budget accordingly.
Which mathematical formula does Housing Loan EMI Calculator use to calculate EMI?
The formula is simple to calculate EMIs. It is = [P x R x (1+R) ^N]/ [(1+R) ^N-1] where:
- ‘P’ represents the loan amount or principal
- ‘N’ is the number of monthly instalments
- ‘R’ is the interest rate per month.
How does a home loan EMI calculator help?
The calculation of monthly installments can be confusing for a new loan applicant. But a home loan EMI calculator helps in calculating the installments accurately and smoothly within seconds.
Why online EMI calculator should be used?
The online home loan EMI calculator provides the exact and correct amount for the EMI to be paid by the loan bearer, so you can plan the payout.
How does EMI calculator work?
The home loan EMI calculator works on the principle of the basic mathematics formula. It calculates the monthly installments based on the rate of interest of the bank, the principal amount, and the tenure for which the loan amount is taken.
How to reduce EMI amount?
Want to reduce the amount of your home loan EMI. The following methods are helpful in lowering it: -
Take a loan of a lesser amount
Explore best banks offering low-interest rate
Make regular pre-payments
Transfer loan amount to different banks with cheaper rates
What are the advantages of knowing the home loan in advance?
The proper planning of the finances is required to maintain an appropriate understanding of the monthly expenses. Calculating the EMI amount in advance helps to prepare a budget for all the monthly expenses.
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