10 things you must know about home loan EMI calculator

The best way to calculate home loan EMI is home loan calculator. Let’s have a glance on 10 important things about Home Loan calculators.

5 Oct,2016 01:15 IST 495 Views
10 things you must know about home loan EMI calculator

Vikas Bafna, a resident of South Kolkata wants to purchase a home. He is looking for a home loan to finance his dream. Like most of us, he is not fully aware of the math of home loans.

How can he do the repayment maths?

What will be his Equated Monthly Installment (EMI)?

Like Vikas, most applicants are unable to comprehend the math behind their EMI calculation. In this context, the best way to calculate home loan EMI is home loan calculator.

Let’s have a glance on 10 important things about Home Loan calculators –

1. Home loan EMI calculator is a self-help tool that helps you calculate your equated monthly installment independently.

2. EMI calculator calculates your home loan eligibility, EMI, and tells you how much of your property value can be financed.

3. The loan calculator calculates the EMI on the basis of the following formula –10 things you must know about home loan EMI Loan calculator

Here E stands for EMI, P stands for Principle, R means Rate of Interest every month. N indicates the tenure of the home loan.

4. Apart from personal and professional details, you need to provide only a few basic loan details such as how much you wish to avail of a home loan? What is the repayment period? What is the property value? EMI can be calculated with all these indispensable information

5. EMI home loan calculators are available for use on the website of the financial corporations and banks.

6. Sophisticated EMI calculators take into account running loan EMI, local, state taxes and insurance.

7. Your input information can be tracked in loan agreement

8. The home loan EMI calculator tells you about your Amortization Schedule. An amortization schedule can be explained as of how your monthly EMI will be segregated between paying off principal amount and interest and what your remaining balance of the home loan will be at the month’s end.

9. It should be taken into consideration that EMI is calculated on the basis of fixed interest rate. However, in the case of floating interest rate, EMI fluctuates on the basis of prevailing market rates and change in base rates.

10. Leveraging home loan EMI calculator, you can crunch the numbers and figure out what home loan package is best for you.

Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

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