Today, affording a house is quite challenging due to the expensive property rates. Hence, many people apply for home loan plans and get the finances that they need to buy their dream houses. These loans can cover up to 80-90% of the property price, which gives the borrowers a great financial boost. To repay the loan, lenders usually offer a period of 20 years in which borrowers can pay off the loan in monthly instalments.
Now, before you apply for a loan, it is important to have a strong repayment plan. To have this plan ready, it is advisable to make use of a home loan EMI calculator. This tool assists borrowers in finding out about their home loans’ monthly instalments. Of course, calculating a home loan’s monthly instalments can be done manually too, but it is still ideal to make use of this calculator.
Why? Let’s find out by taking a look at some of the benefits that a home loan EMI calculator provides below.
- The calculator helps in setting a sound financial plan
In order to be ready with a repayment plan before taking a home loan, you need to be aware of the loan’s monthly instalments. This is what a home loan EMI calculator will assist you with. Once you fill up information that the calculator needs, it will display the loan’s EMIs. You can then decide whether the loan plan is a suitable option or not.
- Helps in getting accurate results
A digital calculator will not be making human errors that an individual might. Once you have provided the information that the calculator needs, it will immediately display the home loan’s monthly instalments. On the other hand, manually calculating the EMIs can take time. This is why it can be better to use a calculator, as it gives accurate results in no time.
- You can try multiple variations
One advantage of using a home loan calculator is that there is no limit to the number of times you can use it. This means that it is possible to keep making changes in the three fields of the calculator to arrive at an EMI option that is convenient. Doing this manually can be quite time-consuming; however, the home loan EMI calculator will display the results immediately.
- The calculator does not require any personal information
It is understandable to prefer manually calculating the loan EMIs instead of using a housing loan EMI calculator if you think that the latter will require sharing personal details. But here’s the good part – lenders do not require users to share any personal information to use these calculators! All that the calculator needs are details of the loan amount, interest rate, and repayment tenure, based on which it will display the EMI results.
After looking at the benefits that a home loan calculator provides, it would be wise to make use of it before applying for a home loan. The results displayed by the calculator can be relied upon, which means that you will know whether a loan plan is affordable or not.