Use a Calculator to check your payable EMI

The Internet has made our lives faster and more organised. We are now able to work on the move, communicate with the office from around the world, and pay all our bills with the click of a button. There is absolutely no need to visit physical stores or payment centres to purchase whatever we need. From a pencil to a car, we can now buy anything online.

The ease of doing business over the Internet translates excellently into the home purchase segment as well. Though most banks and financial institutions still insist on customers completing the paperwork for home loans in person, it is possible to conduct all the background research and one’s loan eligibility online.

Most people are confused about how to apply for a home loan. While others are able to find out about the process, there is a huge amount of confusion over how much EMI will be payable per month. The amount to be paid as EMI is a big factor in deciding which home loan to take. If the payable EMI is too high for the monthly budget to sustain, another loan product must be considered.

Making the final decision in this regard comes very easy if one uses an online home loan EMI calculator. This is a handy tool that financial institutions and banks embed in their web portals. Customers can use this calculator to compute how much EMI they will have to pay per month, basis the principal amount of the loan, the preferred rate of interest and the tenure of the loan. It is advisable to use the home loan EMI calculator after using the home loan eligibility calculator.

The housing loan calculator will start by asking the applicant to enter the amount of money needed by way of housing loan. Next, the applicant fills in the tenure (in months) and the preferred interest rate. Based on this information, the calculator computes the EMI payable. A slider scale helps the applicant see the various permutations among these three parameters to arrive at the EMI amount most suitable to him.

Some home loan EMI calculators also take more details from the applicant, such as yearly income, whether you are a salaried or self-employed person, and so on.

However, every applicant must note that these computations are indicative in nature and not the final figure. The EMI payable is subject to change based on whether part repayments are made towards the principal amount, if floating interest rate is selected and if the loan is expanded mid-tenure. But the home loan calculator can help a potential applicant make a decision about proceeding with a loan application with a certain financial institution or not.