The Importance of EMI Calculator for Getting A Home Loan - Loan Trivia


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Wednesday 1 March 2023

The Importance of EMI Calculator for Getting A Home Loan

Home loans are repaid in the form of EMIs or equated monthly instalments. Each EMI constitutes an interest component and a principal component. The interest component is the cost of borrowing the loan. 

Before availing of a home loan, borrowers must use a house loan EMI calculator to understand their home loan EMI obligation with respect to the amount they wish to borrow. The EMI calculator is a free-to-use tool available online that allows borrowers to get their tentative EMIs by filling in only three fields -- the desired tenor, the principal amount you wish to borrow and the rate of interest you think you will be offered. 

Here's why you must use an EMI calculator before availing of a loan of any kind. 

  • An EMI calculator helps you figure out your tentative EMIs. This is crucial as knowing your EMI amount will help you plan your finances in such a way that you always have money left at the end of each month to clear your EMIs. 

  • EMI calculators save you from missing EMI payments and paying late fees later on. 

  • EMI calculators are quick and accurate. Thus, borrowers can use them to try various combinations of tenor, principal amount and rate of interest until they have arrived at an EMI figure they can comfortably afford. 

  • Lastly, EMI calculators deliver accurate results every single time and therefore, they eliminate the chances of errors that often creep in during manual calculations. They also help borrowers save time and energy. 

Loan EMI calculators are handy tools. They are easily available online. Just go to your lender's website, access them and use them to figure out the right loan amount for you. 

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