Use an efficient way to calculate home loan EMI’s

The market of home loan in India is quite geared up due to aggressive advertising by banks & financial firms. From hoarding to bus backs, TV commercials to radio jingle, banks & finance companies are willing to display how home loans are offered at a competitive lower rate of interest, nominal processing fee, easy online documentation process and flexible repayment options. Besides, friends and relatives are always there to advice for the best home loan deals in India. But admist all this, it is important you stay alert to do sufficient research on all aspects of your housing finances.

Banks & institutions keep on introducing innovative home loan solutions to  meet the needs of house buyer from every section of the society. However, before choosing a particular loan, it is important you understand the parameters associated to loan structure such as the home loan eligibility amount, interest rate applicable, type of interest rate such as floating or fixed, processing & other charges like administrative or service charge, repayment options, etc.

If you personally sit down to do all these complex calculations on your own, you may find it extremely difficult to come up to the right consensus. Resultant would be, you may end up paying extra money on elements like the interest rate on total tenure, processing fee or pre-closure charges, etc. Therefore, leading banks and finance companies in India have introduced home loan EMI calculator under which you can fill in all the relevant factors and come to know the exact EMI that you should continue paying the banks or finance companies to repay your loan on time. When using home EMI calculators there are various elements like income source, employment status, tenure of  the loan, etc. taken into consideration. With the few relevant inputs it makes your decision careful and thorough. They  help individual mentally and financially prepare themselves for the requisite amount to clear off the loans on time. It helps them understand the nitty-gritty of the entire loan structure.

These calculators are available on websites and is provided for your convenience. While using you can enter the amount you wish to borrow along with the interest rate and tenure to determine your EMI to pay towards debt clearance.  Interest rates offered by different banks vary and using such calculator help you quickly determine your monthly payment under all scenarios.

Factors that will influence your home Loan while using home loan EMI calculators:

Income: The income plays one of the decisive role for loan amount and EMI you can pay to the bank. Usually 40 to 45% of your monthly gross income can be utilized for paying EMI, which again decides the amount of loan that you can borrow.

Expenses: Your monthly expenditure determines the amount of money you have in hand which to divert towards for loan repayment. So current expenses and future inflation will also count.

Lifestyle: It is advisable, always try to take a loan that should not let you compromise at least on the basic lifestyle needs. It should mean that you can continue to go for family outings, or eat in a restaurant, or meet other financial goals while repaying your loan.

Risk Appetite: An individual’s risk appetite and the attitude towards debt also matters a lot. You may opt for co-applicant for higher EMI deductible, quicker clearance of the loan. If you expect to get cash benefits in the near future, you might opt for foreclosure after some years of loan repayment. 

Planning for dream home needs very focused approach. Home loan EMI calculators are great step ahead towards easy solutions on house loan calculations and measured approach towards it.