Being the owner of a home is one of the crucial and most appreciated success marks in this world as a home offers security to you as an owner. However, with the increasing real estate costs, buying a home through a single payment may be an extremely strenuous process financially for you as an individual. One of the best ways of generating funds for buying a home is by availing a home loan through SBI, HDFC bank or any other lender. A home loan is a sum of money that you can borrow from financial institutions like banks or NBFCs for the sole purpose of buying a home.
A home loan is one of the effective ways of accumulating funds for purchasing a home with zero need for dipping into savings. Purchasing a home is a long-term decision, making it necessary to look for interest constituents as the longer the loan repayment tenure is, the more costly your home loan will be. Various financial institutions provide a reasonable and attractive rate of interest for making home loan options affordable for you as a customer.
Financial institutions tend to offer 2 kinds of rate of interest on home loans i.e., a fixed and floating rate of interest. You as a customer can go for either one of the options based on which is a better match for you. Various financial institutions and banks provide a reasonable and attractive rate of interest for making the home loan affordable for you as a customer. Home loan repayment is made through EMIs (equated monthly instalments) making the loan amount repayment convenient and simple for you as a customer. Home loan repayment is done monthly, which makes the repayment process simple for you as a customer as you can select the loan tenure and select the tenure that is not at all stressful for you. In case you are confused about what must be your appropriate EMI and repayment tenure, ensure to use an online home loan EMI calculator. Note that all lenders may it be SBI or HDFC offer an online home loan EMI calculator i.e., online SBI home loan EMI calculator or HDFC home loan EMI calculator. The calculations through such loan calculators are accurate and simple. Using an online home loan calculator has the listed benefits –
Simple computation
If you want to know the accurate figure of EMI as per your repayment capacity, you will just require inputting the loan amount, interest rate, loan repayment tenure and processing charges, if required. The computation can be done by online home loan calculator and the EMI amount will be computed instantly using the calculator.
Selecting the correct repayment tenure
Post getting the accurate EMI figure, you as an individual may select the apt loan tenure. Using a calculator, you can determine whether you can afford to pay a high loan EMI and select a short repayment tenure period for repaying your loan swiftly or if should you go for a low loan EMI by opting for a higher repayment tenure.
Advantageous for loan management
While making loan EMI repayments, sometimes you as a customer might have a few additional funds for making prepayments. If you as a customer want to revisit financials and view how prepayments will assist in repaying a loan before the term ends, an online home loan EMI calculator may help you.
Comparing loan deals
You can use the online loan calculator for comparing loan deals from distinct banks. The outcome shows the overall loan cost along with the respective loan EMI. This assists in narrowing down prudent options for you and selecting the loan that matches your set of requisites.
Accurate outcomes
Have you heard the saying ‘to err is human’? yes, we are humans and can make manual miscalculations while computing the loan EMI on the online home loan EMI calculator. An online EMI calculator will never compute wrong outcomes, meaning all computations are performed with 100 per cent accuracy.
Home loan computation is not a simple activity. The complicated manual mathematical computations can take plenty of hours and may be tedious for many of you. Just by using a home loan EMI calculator, you can make your life simpler when it is to swift loan computations.
Home loan EMI computation formula
The formula to manually compute home loan EMI and various other details are mentioned below for your reference.
Home loan EMI = [p x r x (1 + r) ^ n] / [(1 + r) ^ n – 1]
Wherein,
EMI = equated monthly instalment,
P = loan proceeds or principal,
N = loan repayment tenure in months or number of month-on-month instalments,
R = rate of interest per month (annual rate of interest divided by twelve to get a monthly rate)
In addition to interest rate over the principal amount, financial institutions even levy a home loan processing charge, which is added to your overall cost of the loan. You can simply negotiate the processing fees of a home loan with a lender to get a good deal on the home loan.
In case you are looking to avail a home loan, then you can use the online home loan calculator to find out various details linked with home loan proceeds, rate of interest, repayment tenure, EMI, overall interest to be met, etc.
Why must you opt for a loan-specific calculator?
There are various kinds of online loan calculators available through on the online platform. However, it is highly recommended that you use an online loan-specific calculator. A loan-linked EMI calculator is way simpler to use and can make your tasks smoother. There are distinct kinds of calculators available online for every loan type, for instance, personal loan calculator, car loan calculator, financial loan calculator, home loan calculator, etc. As mentioned above, if you are looking to avail a home loan, then using an online home loan EMI calculator is a must to figure out an appropriate EMI and repayment tenure as per your repayment capacity. As manual calculations are prone to errors or mistakes, it is not recommended to manually compute your home loan.
