22 MARCH, 2022

Mr. and Mrs. Gupta had planned to buy their dream home with a home loan since their children went abroad for a job. They knew that a home loan was the best way to fulfill their financial goal. After researching the lenders, they finally availed a home loan that helped them buy the bungalow they had been eyeing at. However, while Mr. Gupta was assured that he can repay the amount comfortably, Mrs. Gupta was always clouded with fears. She wondered if they would be able to repay the loan at all. Sensing her concern, her husband told her about an EMI calculator. To her delight, he informed Mrs. Gupta that he had already used an EMI calculator before availing the home loan and ensured that the loan was within the budget.

 

An EMI calculator can help you find the best home loan plan for you so that you face no repayment problems in the future. Read on to know all about a home loan EMI calculator. 

 

What is an EMI calculator?

An EMI calculator is an online tool available on lenders' and aggregators' websites for free. It helps you in calculating your loan details like EMI, the total cost of borrowing, and the interest component of the loan. By entering your loan value, interest rate, and tenure, you can determine your affordability and find a suitable loan for you. The EMI calculator is based on the mathematical formula-

 

EMI Amount = [P x R x (1+R) ^N]/[(1+R) ^N-1]

Where,

 

EMI - equated monthly installment

P - principal or the loan amount

R - the rate of interest for the loan (monthly)

N - tenure of the loan (monthly)

 

All you need to do is, input the relevant values and get the results.

 

Why Use A Home Loan Calculator?

Here is how a housing loan calculator can help you -

 

It's easy to use and available for free.

You can use a Home loan EMI calculator anytime without any restrictions. It's available for free on the lender and aggregators website. You need to just input variable values that can be altered as per your suitability. Once you enter the values, you will get the results instantly.

 

It is safe to use

A home loan EMI calculator is accurate and gives error-free results. With this computation tool, you can get results that are free of any mistakes, unlike manual calculations. Moreover, you need not input any of your personal details to use the calculator. You can get the loan details by entering your loan amount, interest rates, and tenure. It also works as a home loan interest rate calculator, as it informs you of the total interest outgo too.

 

It helps in financial planning and budgeting

By using this calculator, you can determine your affordability for the loan. You can decide if you will be able to pay the loan EMI comfortably. If the loan EMI is beyond your budget, you can make changes to your loan amount or tenure and get a different EMI amount. Once you are satisfied with the loan EMI amount, you can apply for the loan.

 

A home loan calculator can make repayment easier as you already know the value you need to pay. It can also help you plan your loan well and avoid defaults. So wait no more. Use an EMI calculator and apply for home loans today.

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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.