Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
10 MAY, 2022
When you apply for a home loan, it allows you to buy one of the biggest assets of your life and reap the benefits of homeownership while paying it off over a long period. This, however, also comes with the obligation of Equated Monthly Instalments (EMIs). EMIs are made up of the principal and the interest that you monthly repay the lender over the loan tenure. Typically, EMIs make up for a significant portion of your monthly budget given that the home loan amount is usually large. Hence, financial planning and having a clear idea of how you are going to repay your home loan are crucial before you apply for a home loan. A home loan EMI calculator is a helpful tool in such planning as it gives you an estimate of what your EMI will likely be.
How to use a home loan EMI calculator for financial planning?
A home loan eligibility calculator helps to predict and plan for future finances in the following ways:
The bottom line
The three inputs of a home loan EMI calculator – home loan amount, interest rate, and loan tenure – give you the opportunity to try various permutations and combinations to land on a home loan that both, works for your budget and helps you buy your dream house.
You have already rated this article