Online budget management tool for your EMIs

Posted by Anurag Mishra on August 10th, 2017

EMI is the equated monthly installments that you pay the financers for repaying your home loan amount along with the interest amount. It comprises of the balance loan amount, interest rate and the number of installments. The EMIs of a home loan is generally 30-40% of your monthly expenditure, so you need to plan it accordingly so that you don’t have to struggle hard in carrying forward the installments of your debt. We know that a beforehand planning of anything can be of great help, then why not for the long tenure of your home loan? Home buying is an exhaustive and expensive venture, and a beforehand proper planning can help you to make your hassle-free. Budget management plays a great role in smooth functioning of your loan & debt process.

Home buying is an easy task in these days of home loans, but mismanagement can make the tenure a difficult one. After getting the loan and owning the house, the only thing remains is your EMI on the debt which can be extended up to 30years for an Indian resident. So it’s better to plan and design the tenure in such a way that you never fail in paying the EMIs in time. This is only possible, if you calculate the EMIs beforehand. But the calculations can be head scratching and puzzling, so the manual calculations seldom gives approximate results; when the balance and installments change along with the floating rate of interest. To help the potential borrowers, the official website of the financers and the aggregator sites provide the online EMI Calculator, an efficient and accurate budget management tool for your home loan.

Why you need an EMI Calculator?

As a potential borrower you need to prepare yourself for the loan, because it is a matter of lump sum amount of money. You cannot take the risk of being a defaulter only because of some mismanagement of funds for your installments. So you need this budget management calculator, to start saving from the beginning and channelize your monthly budget accordingly. We will give you the instance of Maitrayee, who used this budget management tool before applying for the home loan. She researched thoroughly about the existing home loans in the market, the prevailing interest rates and the terms and conditions of the existing financers. While following the sites, she clicked into the EMI Calculator and was very happy to find this online tool, which gave her the accurate EMI for the figures she fed in.

While feeding the figures she discovered various steps for reducing her interest cost like:

• If she makes make larger down payment reducing the loan amount, the EMI cost is reduced.
• If she shortened her loan tenure, though her EMIs increased, but the interest cost was reduced.
• The floating rate EMIs varied from the fixed rate EMIs resulting to a good amount of difference in the interest cost.
• The beforehand calculations paved her savings path, which would help her in prepaying the loan amount cutting short the interest cost.

Other than the benefits of getting the mind boggling calculations solved in a wink, you get the amortized table for your existing tenure. We hope, this article helped you to get an answer for, ‘why you need an EMI Calculator’. Use it for your own benefit.