Home loans are a secure financial option that an individual can avail to sponsor their housing requirements. Besides, purchasing a home, one can avail a loan for construction, renovation or extension of their home. However, before applying for a loan, applicants need to ensure that they meet all the eligibility criteria as specified by their lending institution.
Borrowers who do meet these eligibility factors may get their loan application rejected, which will be recorded in their credit report and reduce their credit score. Besides eligibility criteria, they should also use a home loan EMI calculator to know how much they will be paying as EMI every month once their loan gets approved. Moreover, the calculator will also display the total interest payable and the total loan amount aside from the EMI.
To calculate the amount, you are required to enter the following details –
Loan amount – you can increase or decrease the loan amount as per your requirements and affordability.
Repayment period – adjust the loan tenor to know the total interest and total amount payable to decide when you can foreclose or part-prepay your loan.
Rate of interest – you can compare the rate of interest on a home loan offered by different lenders to check the best offers that are suitable to your needs.
A home loan EMI calculator is straightforward to use. Since the calculations are not done manually, the chances of errors are nominal. It will facilitate individuals to customise their finance needs to avoid incurring debts and arrange their finances accordingly.
Also Read: Tips to Efficiently Manage Housing Loan EMIs
