10 Important Things You Must Know About Home Loan EMI Calculator

While applying for a home loan, it is important to make a financial budget and estimate the loan amount, interest rate, and tenure beforehand.

This will help in avoiding any financial crisis during the loan repayment tenure and will also allow timely EMI payments. However, doing these calculations manually is not easy and thus, it is advisable to use a home loan EMI calculator.

10 Things to Remember About Home Loan EMI Calculator

Before using a home loan EMI calculator, the 10 things that you should keep in mind are as follows:

1. This calculator is a self-help tool which allows you to calculate your home loan EMI easily.
2. It calculates your total EMI and total interest amount you will have to pay till the end of the loan tenure.
3. The EMI calculator is a very safe-to-use device as you do not have to enter any personal or contact details in this calculator.
4. EMI calculator helps in estimating the amount of loan you are eligible to apply for, along with the property valuation.
5. Usually, the online website of every bank or NBFC has a home loan EMI calculator, which is used before applying for a home loan.
6. It uses a simple formula for calculating the home loan EMI which is: E = P * r * (1+r) ^n / ((1+r) ^n-1). Here, E is EMI, P is principal amount, r is rate of interest, and n is tenure.
7. The information you enter in this calculator can be tracked by your loan agreement.
8. Using this calculator you will also have a brief idea about your loan repayment pattern.
9. With this EMI calculator, you will have a clear idea about the home loan package that suits you best, considering your financial budget.
10. The home loan EMI calculator calculates results by following interest rates on a fixed basis, which may vary in case the interest rate is floating.

Steps to Use a Home Loan EMI Calculator

After knowing the things to consider about using a home loan EMI calculator, it is time to use one. The step-by-step processes for using it are as follows:

Step 1: Go to the online portal having this EMI calculator.

Step 2: Enter your loan amount, tenure, and rate of interest.

Step 3: Submit this data. The total EMI amount and total interest amount will be shown on the screen.

Benefits of Using a Home Loan EMI Calculator

The benefits of using this EMI calculator would be same for all financial institutions providing home loans, including Shubham home loan. Hence, these benefits are as follows:

1. It is an online tool which is easy to use and saves time on manual calculations.
2. This calculator is not time-consuming as you just have to add these values and will get the results instantly.
3. Provides accurate answers and involves no error, which can sometimes happen while solving problems manually.
4. Allows you to compare the loan offers provided by numerous lending financial institutions and choose the most suitable policy.
5. Helps in better financial planning as you can estimate your total loan interest amount beforehand and avoid a financial crisis.
6. Helps to verify the repayment schedule and the EMI amount given by your lending financial institution while applying for a home loan.
7. To plan down payments and prepayments of a loan in a better way along with proper fund management.

Factors Affecting Home loan EMI

The factors affecting the EMI of home loans of all financial institutions including the Shubham home loan are as follows:

• Repayment Tenure: Longer the repayment tenure, lesser will be your EMI value, and vice versa. However, with a longer tenure, the rate of interest usually rises.

• Rate of Interest: The loan EMI and interest rate is directly related to each other. Higher the interest rate on a home loan, higher will be your loan EMI and vice versa.

• Money Supply Changes: If the supply of money in financial institutions is more, then the interest rate will fall, along with your EMI value and vice versa.

• Loan Reconstruction: Due to changes in the terms of your loan, your total EMI value may change.

• Balance Transfer Facility: By transferring the home loan balance from one financial institution to another, your EMI value can change.

• Changes in RBI Policy: With changes in the RBI policies, the loan interest rate fluctuates, resulting in changes in your EMI value.

Steps to Apply for a Home Loan

Now, that you know in detail about the home loan EMI calculator, you must also know the step-by-step processes of applying for a home loan, which is as follows:

Step 1: Check your eligible loan amount for the home loan using an EMI calculator.

Step 2: Select the most suitable lending financial institution.

Step 3: Visit the online portal of the financial institution to apply for a home loan.

Step 4: Find the application form and click ‘Apply Now’ to start your application process.

Step 5: Enter all your basic details like personal, address, contact, etc., as required.

Step 6: You will receive an OTP via email id or phone number. Enter it correctly for verification purposes.

Step 7: Fill in your income and financial details.

Step 8: Submit a soft copy of all the required documents.

Step 9: Enter the estimated loan amount, rate of interest, and tenure.

Step 10: Submit your application form.

After knowing everything about the home loan EMI calculator in detail, it will be easier for you to use it adequately. Moreover, after using this calculator, it will also be easier for you to estimate the eligible loan amount. You can also compare various home loan policies in no time using this calculator.

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