What to look for in a Home Loan EMI Calculator

by Banknomics India Compare and Apply for Loans and Insurance in India

One of the two main things people want to know when applying for a home loan, besides the down payment required is the Equated Monthly Instalment or EMI they will have to pay. An easy way to do this is to use a Home Loan EMI Calculator, which also sometimes called a Housing Loan EMI Calculator. However, there are certain characteristics of a good Home Loan EMI Calculator that you should know before using one.

Personal Information
Many financial institutions offer online Housing Loan EMI Calculators. However, the majority of them will ask you your personal information like mobile number and e-mail address. This has nothing to do with the calculation and is simply a method for them to collect your data so they can push their offers on to you, even if you do not want them. If you want to avoid unwanted sales calls, the best plan of action is to avoid any Home Loan EMI Calculator that asks for your personal information.

Relevant Information
Not all Home Loan EMI Calculators are made equal in terms of the information they capture. Some may ask for processing fees while others may not. Nowadays, many banks offer prepayment however, some Home Loan EMI Calculators may not take this into account. Needless to say, whether or not a Home Loan EMI Calculator takes this information into account will change the resulting estimated EMI it displays. To ensure a correct calculation by your Home Loan EMI Calculator, make sure it captures the following information:

Loan Amount
Loan Tenure
Interest Rate
Processing Fee
Pre-payment amount
Pre-payment frequency
Pre-payment fee
Which portion the pre-payment applies to

With all the information above, the Home Loan EMI Calculator is sure to display a more accurate result. Though it is to be kept in mind that the final EMI may differ based on the bank and the terms offered.

Ease of Use
It is unforgivable in this day and age to have a Home Loan EMI Calculator that is too confusing or complicated to use. With all the tools at the disposal of website developers and coders today, it is absolutely unacceptable that the Home Loan EMI Calculator be too daunting.

Look for easy to use features like sliders, drop-down menus, large, clear buttons, clean, easily understandable layout etc. When extra attention is paid to the aesthetics, you can be sure that the backend is equally thorough.

To sum up
To summarise, a good Home Loan EMI Calculator should not ask for your personal information, should capture all relevant information and be extremely easy to use. Keep these factors in mind and you are sure to find a Home Loan EMI Calculator that accurately estimates your Home Loan EMI.