Why do you need a Home Loan?
A home loan enables you to fulfill your dream of buying your own home. Owning a house may be the topmost priority for many of us, if you are planning to settle down permanently in a new city. Buying a home provides a sense of accomplishment and security, not only to you, but also to your entire family. Also, a home loan helps you get exemption from your income tax. As per Section 24(b) of the Income Tax Act, 1961, you can get deduction up to Rs. 1.5 Lakh towards the total interest payable on your home loan.
How to pay off your Home Loan?
You can pay off your home loan with the help of monthly EMIs. A home loan requires a huge investment on your part as you need to pay for down payment and the monthly EMIs. So, it is logical to opt for a home loan which you can repay over a definite period of time without getting affected by it. Therefore, it is important to know your monthly EMIs before investing in your home, so that you will not face any financial setback in the coming years of your life.
What is an EMI?
EMIs or equated monthly installments refer to the fixed amount of money that you as a borrower need to return to a particular bank in every month on a specific date as repayment for your home loan. It is a systematic way of paying off your home loan to the bank. By using EMI Calculator, you can calculate and pay off the interest as well as the principal amount of your home loan.
What is a Home Loan EMI Calculator?
A home loan EMI calculator is an electronic means of calculating the EMIs for your home loan. You need to fill four important details in the calculator to get the exact amount of your monthly EMIs for your home loan. These details include your principal loan amount, the tenure of the loan, rate of interest and processing fee. Also, you need to be aware of the method of computation which can be either at monthly reducing balance or annual reducing balance or daily reducing balance. You can calculate your EMIs by using the mathematical formula, or an excel, or the EMI calculators offered by various banks and financial organizations.
Benefits of Using Home Loan EMI Calculator:
It is always important to know your monthly EMIs before applying for a home loan. You can do this by simply using a home loan EMI calculator which will provide you the accurate amount of your monthly EMIs. Also, knowing your monthly EMIs reduces your financial confusions and helps you streamline your budget. You can also think for your other financial goals. Many EMI calculators help you get your loan amortization table which provides you the exact details of how much you have paid and how much amount is outstanding.