Budgeting weapon: EMI calculator

Posted by akanshasingh on May 29th, 2017

To own a home is the most cherished dream for an established individual. With the help of home loan one can buy a house faster. The home loan cover different properties like: under-construction property, ready flat, a plot of land or home that needs renovation, home extension or any re-selling property. With home loan the job can be done hassle-free. After taking the loan you need to repay it in equated monthly installments. EMI is the fixed monthly payment against the home loan depending on the amortization schedule provided by the bank.

When we come across the home loan EMI calculator in the online sites of the financial organizations, we wonder what it is. And what is the requirement of calculating the EMI before hand, when the lender would provide the schedule. All loans have their own set of eligibility criteria and the EMI amount that depends on the principal amount, loan tenure and type of interest the borrower is applying for. Apart from all this you as a borrower you need to prepare yourself for the amount of EMI you are comfortable to pay. Accordingly you can adjust your budgeting. So it’s very essential to have a beforehand knowledge of the EMI you would pay.

It’s very easy to calculate the EMI, using the EMI calculator. With the following inputs: loan amount, loan interest and loan tenure, in the given online emi calculator provided by the financial organizations the monthly installments can be calculated. An EMI is consisted of two elements, principal repayment and the interest payment. Initial years of the loan tenure contain the interest payment against the loan amount after that principal amount is repaid.

Manually computing the EMI for different combinations of principal amount, interest rates and loan tenure is time consuming, confusing and error prone. With home loan EMI calculator the calculation is done automatically in split seconds. The calculation is error free and helps you to adjust the budget before hand.

Though, the lending institutions provide amortization table for budget planning. But, with fluctuating interest rates the EMI varies, so it is advisable to make use of the EMI calculator for approximate value.

After getting the dream job, the next dream is to buy a beautiful house for beloved parents. But, you have no idea of the EMI you have to pay; blindly moving ahead may result in finishing off the salary in paying the EMI. Home Loan India EMI calculator is an efficient tool for the fixed salaried or budgeting person, who can plan their EMIs accordingly. The EMI is inversely proportional to the loan tenure, more the years lesser will be the EMI. It is directly proportional to the loan amount, more the amount, more is the EMI. So you can adjust the budget and prepare yourself accordingly in purchasing the house. More prepared you are lesser will be the chance of your getting into the defaulter list.

Make the most out of the opportunity. Save the money for future now, when the interest rate may rise. Well planned loan tenure with regular EMI payment would reflect in form of good credit score. It may help you in future loan planning. So plan and execute with the help of digital technology.