Recent real estate market analysis by CBRE suggests that housing sales in India are expected to rise in the year 2019. With an increase in housing sales, the demand for housing loans is also on a rise across the Indian demographic.
However, to avail the loan there are several factors that you must consider. The first and foremost being whether you can afford the EMI you will need to pay towards the loan. Equated Monthly Income or EMI is the amount that you have to pay every month in the duration of the loan tenor.
With tools like online home loan EMI calculator, you can easily calculate EMI towards your housing loan.
Table of Contents
What is an EMI Calculator?
An EMI calculator is an online tool that can give you an accurate calculation of the EMI you will need to pay for your home loan. The EMI calculator uses parameters like the principal for the loan, rate of interest against it and the lone tenor to calculate the amount you will need to pay each month.
Financial institutions have brought home loan EMI calculator online that enable you to know your EMI amount in a matter of seconds. Using this tool gives you the convenience of taking financial decisions for your future more easily.
What is the Equation Used to Calculate EMI?
The equation used to calculate EMI is-
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where P is the principal or loan amount, R signifies the loan amount and N is the number of monthly instalments.
Calculating EMI using this equation is a long drawn and time consuming process. Thus using the home loan EMI calculator online gives you the liberty to make the calculation accurately and in no time.
How to Calculate the EMI Using Online EMI Calculator?
The online EMI calculators brought by financial institutions are quite simple to use. You just need to follow the steps below –
- Visit the housing loan calculator page.
- Enter the required details including home loan interest rates, loan amount and tenor.
The calculator will then give you the EMI towards your loan.
What are the Advantages of Using the Online Home Loan Calculator?
Using the online housing loan calculator has several advantages. For instance –
. It gives accurate results
The biggest problem of calculating your EMI manually is that the chances of making mistakes are quite high. Using the calculator gives you accurate results and thus there are no chances to facing problems later on.
. It is fast and efficient
Since the process takes place online and the only thing you need to do is provide the parameters accurately, the EMI calculator is much faster and more efficient in calculating your EMI amount.
. Helps you to make financial decisions
If you know the correct amount you will need to pay as your EMI, you can make long term financial plans based on it. You will know how much EMI you can afford and that, in turn, will help you to gauge your ability to repay the loan. Thus you can decide the amount will borrow based on your ability to repay it.
. You can use it without restrictions
There are no restrictions when it comes to using the home loan EMI calculator online. You can avail it anywhere and anytime you want. Thus it makes calculating EMI a lot more accessible.
Thus there are several advantages of using the housing loan EMI calculator. When you use the EMI calculator you can be much more cautious in planning your future finances. So make good use of the tool and check your home loan eligibility to make well informed decisions about borrowing credits.