A part of the planning process involved with availing a Home Loan is determining the cost of borrowing. The rate of interest is a major deciding factor based on which the Equated Monthly Instalment (EMI) to be paid every month is determined. A Home Loan calculator is a useful online tool that provides a tentative amount for the EMI which is subject to the rate of interest and the tenure of repayment. Borrowers can use an EMI calculator to calculate the possible EMIs they will have to pay for varying rates of interest.
The calculators can be used to compare different loan schemes offered by banks and Non-Banking Financial Companies (NBFCs) and to finally decide on which loan to avail as per one’s requirements.
A Home Loan EMI calculator takes into account the various key parameters that determine the affordability such as the earnings from all sources, expenses, and existing loans. Using the different rates offered by banks and NBFCs, the borrower can decide on which loan scheme is best suited for him/her. By calculating the probable EMIs with different values of the interest rate, the most affordable Home Loan can be opted for.
Another tool that is quite useful is the Home Loan eligibility calculator that gives the maximum amount an individual can afford to borrow.
The basic formula to calculate the EMI for a Home Loan is given as under:
EMI= P x R (1+R)^N
(1+R)^N-1
Where
- P - Principal or amount borrowed
- R - Monthly interest rate
- N - Tenor of the loan repayment in months
Loan seekers should take a look at the available Home Loan schemes, compare EMIs by using the calculator and apply to the most feasible and economic option.
To know more about the use and benefits of a Home Loan EMI Calculator, watch here:
The calculators can be used to compare different loan schemes offered by banks and Non-Banking Financial Companies (NBFCs) and to finally decide on which loan to avail as per one’s requirements.
A Home Loan EMI calculator takes into account the various key parameters that determine the affordability such as the earnings from all sources, expenses, and existing loans. Using the different rates offered by banks and NBFCs, the borrower can decide on which loan scheme is best suited for him/her. By calculating the probable EMIs with different values of the interest rate, the most affordable Home Loan can be opted for.
Another tool that is quite useful is the Home Loan eligibility calculator that gives the maximum amount an individual can afford to borrow.
The basic formula to calculate the EMI for a Home Loan is given as under:
EMI= P x R (1+R)^N
(1+R)^N-1
Where
- P - Principal or amount borrowed
- R - Monthly interest rate
- N - Tenor of the loan repayment in months
Loan seekers should take a look at the available Home Loan schemes, compare EMIs by using the calculator and apply to the most feasible and economic option.
To know more about the use and benefits of a Home Loan EMI Calculator, watch here:
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