Since a home loan comes with a long repayment tenor, one needs to plan the repayment accordingly for hassle-free and convenient repayment. Moreover, borrowers should also be careful to choose a loan from a suitable lender at convenient rates and terms and conditions.
In this regard, an online home loan calculator can prove to be quite helpful. Borrowers can consider using this online tool to make an informed decision while applying for a home loan.
How does the home loan calculator help in optimising loan applications?
A home loan EMI calculator is a free tool that helps borrowers to determine the EMI amount that they can pay comfortably. Mentioned below are the ways in which an EMI calculator can help in optimising a home loan to manage finances better:
Deciding the loan amount
Before applying for a home loan EMI calculation can help in deciding the loan amount that they can afford to repay considering their other obligations. For instance, through home loan calculator, an applicant can alter the loan amount figure to find the most affordable EMI that they can pay in a particular period without straining their finances.
Helps in planning repayment
Individuals find out how much loan amount they can borrow based on their repayment capacity. They can keep adjusting the loan tenor, the interest rates and the borrowed amount to assess how loan and EMI they can opt for. This will help in planning the repayment in a better way.
Therefore this kind of financial planning will help borrowers remain stress-free throughout the borrowing tenor as it eliminates the possibilities of default.
Comparison among lenders
These calculators can also help borrowers to easily compare among the loans that are offered by multiple lenders. They can quickly check the EMI outflow and the loan interest payable for different home loans offered by various lenders. Then, after a thorough comparison, individuals can make a suitable choice of lender.
However, comparing lenders can help borrowers assess the customised offers that most lending institutions provide.
For example, several reputed financial lenders in India extend pre-approved offers to existing customers. These offers help in streamlining and simplifying the loan application process. Borrowers can check their pre-approved offers within a few seconds by simply entering various details like names and contact numbers. These offers are available on various financial products like loan against property and others.
Offers insight into suitable loan tenor
Loan tenor will impact the EMI amount of a borrower. An idea of the suitable loan tenor provides better insights to how to repay the loan quickly and smoothly. Therefore through a home loan calculator, individuals can evaluate his/her outflow for different tenor options.
For instance, if a borrower wants to save on interest, he/she can opt for a shorter tenor. Alternatively, when a borrower wants to opt for affordable EMIs, he/she can opt for a longer tenor. But the overall credit will be higher at the end of the tenor.
How to use an EMI calculator for home loan application optimisation?
Using a home loan EMI calculator provides accurate results in estimating the precise amount of EMI one has to pay per month. Borrowers can calculate their EMI outflow by following 3 easy steps:
- Navigate to the EMI calculator page on the lender’s website and enter the preferred loan amount
- Select the required tenor
- Lastly, enter the interest rate depending on the chosen lender.
- After entering these details, this home loan interest rate calculator will automatically show exact figures of total interest payable, monthly instalments, and total loan amount,. One can keep altering different parameters as and when required.
However, before applying for home loan one should check the eligibility criteria and list of all documents for a home loan. This will help in maximising the chances of loan application approval. Notably, the documents and eligibility for home loans will always vary across different lenders. However, besides knowing the above aspects, one must learn about decoding the home loan application process for a hassle-free application and approval.
For proper loan management and repayment planning, an online home loan EMI calculator is an effective tool. It can help one to choose a suitable lender and optimise the application for a home loan.