Financial competence is highly regarded in making informed decisions. Since every individual does not know and understand financial concepts formally, technology has the solution. One of the technology-based supporting tools for home loan seekers is the housing loan calculator. If a loan seeker wants to be familiar with basic terms used by lending institutions, the best source of informal financial learning is the internet; otherwise, just access the online tool and get quick results.
With a ready-to-use calculator for home loans, you can determine home loan eligibility and make an informed decision for easy EMIs, even without any financial knowledge. The home loan EMI calculator shows results for complex calculations within a few seconds. Let us elaborate on what these online calculators are and how you can use them.
What is this calculator for home loans?
- A calculator for home loan is an online ready-to-use tool that assists you in determining your eligibility, calculates EMI (Equated Monthly Installment) towards your home loan, total interest payable during the repayment tenor, total amount payable till the tenor ends.
- Overall, the calculator acts as a financial planning tool for borrowers. It displays results based on the values you input in the tool like home loan interest rate, your age, income amount, property location, etc.
Home loan EMI calculator – how it helps
EMI includes the principal amount and interest to be paid on a monthly basis to close your home loan on time. It is crucial to calculate the home loan EMI before you apply for a loan so that you can plan the outflow of your money.
- With the Home Loan EMI calculator, you can estimate the amount that you need to pay as EMI towards your loan. Once you know the EMI amount that you must pay to the lender on time, you can make an informed decision that you would be able to repay the loan on time, or you should make it more affordable for easy EMIs.
How to use the EMI calculator
To calculate EMI using an online calculator for home loans, you just need to enter:
- The loan amount you want to apply for.
- The interest rate offered by the lender.
- The loan tenor in months.
That’s it. Just click, and the calculator will calculate the EMI amount. You will get the total interest payable and your EMI amount within a few seconds.
Thus, advanced EMI calculation helps you plan your monthly budget.
Home Loan Eligibility Calculator
The Eligibility calculator for home loan is used to determine how much credit can be provided to you. There are a number of factors that a lender considers to sanction your home loan. Major factors that determine your eligibility include:
- Occupation: Home loans can be availed of by salaried and self-employed persons.
- Age limit: The age limit specified is 23-62 years for salaried persons, and for self-employed individuals, it is 25-70 years.
- Minimum Salary/Income: An applicant with a net salary of Rs.25,000 or above is preferred by most lenders. This limit may vary with different lenders.
- CIBIL Score: Lenders check your CIBIL score to know your creditworthiness. Your score should be 750+. Otherwise, a lower score can increase your home loan interest rate.
- Other Factors: Property location, work experience, and business continuity also matter for a home loan lender.
How to use Eligibility Calculator
Following are the steps to use home loan eligibility calculator:
- Set your date of birth and the residence city.
- Enter your in-hand monthly salary
- Choose the repayment tenor that you prefer.
- Enter monthly income, if available, from any other source.
- Enter your ongoing- EMIs.
You are done. Click the button ‘Check Your Eligibility’ to check your eligibility based on the details provided. It is as simple as that.
This is the simple way to plan the purchase of your dream home. With the knowledge of the latest developments in the housing market and quick calculator estimates, you can efficiently compare home loans with different lending institutions. And if you develop financial competence, you can know more about the long-term effects on your financial situation even before buying a home loan.