Home Discover Journals 10 Things You Must Know About Home Loan EMI Calculator

10 Things You Must Know About Home Loan EMI Calculator

By Finserv MARKETS - Apr 26,2019
Views Icon187 Views 0 0 Comments

10 Things to Know About Home Loan EMI Calculator

Looking to purchase a new home or renovating an existing one? If yes, it is safe to assume that you are already thinking about applying for a home loan. But, do you know what would be the approximate EMI outflow once your home loan is approved? If not, then it absolutely critical that you make use of a home loan EMI calculator to understand the same.

Your Equated Monthly Instalments or EMI is calculated by combing the key elements of the loan such as interest rate, tenure etc. Your EMI is a combination of the principal and the interest that you pay over the tenure of the loan. Hence, it is critical to understand the segregation of these components that ultimately will help you plan your finances better.

  1. The EMI calculator is a self-help tool that enables you to calculate the home loan EMI independently.

  2. The calculator can also tell you about your eligibility, EMI and the amount that will be sanctioned for your property.

  3. An EMI calculator uses a simple formula to determine your EMI. The formula used is:
    E = P * r * (1+r)^n / ((1+r)^n-1) where E is EMI, P is the principal loan amount, r is the rate of interest calculated on a monthly basis.

  4. To get the exact amount of the EMI you need to put the loan amount and repayment tenure in the calculator. The calculator does not ask for personal and professional details that you have already mentioned to the bank.

  5. Almost every bank or NBFC (Non-Banking Financial Company) has an online EMI calculator which you can avail before applying for a home loan.

  6. If the EMI calculator is more comprehensive, it will take into account things like running loan EMI, local state tax and insurance.

  7. Your input information can be tracked in your loan agreement.

  8. The home loan EMI can also explain your repayment pattern in detail. It will segregate the EMI between the principal amount and the rate of interest on the home loan.

  9. The EMI that is calculated on the tool is on the basis of fixed interest rate. In case of floating interest rate, the EMI varies.

  10. Using an EMI calculator gives you a clear idea regarding what home loan package will suit you best.

Need a home loan? Head over to Finserv MARKETS, where you can avail Bajaj Finserv home loan at the most competitive interest rates, with minimal documentation and flexible repayment options What’s more? You get a plethora of other advantages like PMAY subsidy, complementary Financial Fitness Report, flexible repayment options and much more! So why wait? Invest in your home today by availing a home loan with us, today!

You must also read about ways to reduce Home Loan EMI.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment, and exclusive EMI store, all under one roof- anytime, anywhere!

Comments

Connect with Us
Connect with Us

Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522