banner banner

Stay Up-to-Date with Our Blogs & Articles

The texts on this website have been translated using an automated translation tool and its accuracy cannot be guaranteed. We recommend referring to the English version of the content for the most precise information. In the event of any disputes or inconsistencies, the contents in the English language shall be considered final and binding. IIFL HFL disclaims any liability or responsibility in this matter.
Go Back to Main blog page

Benefits of using a Home Loan EMI Calculator

By IIFL Home Loans | Published On Jun 13 2024 9:06 AM 1 min read 47 views 3173 Likes
banner

Imagine walking inside your house for the first time, being on cloud nine as you have finally fulfilled your dream of having your own house. Well, home loans have been pivotal in helping numerous people celebrate and experience this moment. However, when planning and applying for a home loan, one of the most important things to keep in mind is staying within the budget. Once the funds are disbursed, EMI for your home loan begins. It’s always better to know your home loan EMI before you apply for a loan. Let’s deep dive into home loan EMIs and how you can calculate home loan EMI manually by using a home loan EMI calculator.

Why you must know Home Loan EMI in advance?

Knowing home loan EMI before applying for a loan is important for a well-informed decision. It helps you determine whether the EMI aligns with your budget or not. For any given amount of loan, the EMI will depend on the interest rate and the tenure. If your budget is low, you need to select a longer tenure to reduce the amount of EMI.

However, if you have good affordability, then you can select a shorter tenure to reduce your interest outflow. Further, it also helps you select the right lender by comparing EMI for loans offered by different lenders.

How to calculate Home Loan EMI?

Home loan EMI can be calculated using the following formula:

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

where –

P = Principal amount

R = Rate of interest

N = Tenure in months

Here are the factors that affect the home loan EMI:

  • Principal Amount: This is the amount you are willing to borrow from the bank to purchase your house. The higher this amount, the higher will be your EMI.

  • Tenure: This is the period over which you will repay your loan to the bank. The longer the tenure, the lower your EMI but you will have to pay a higher amount of interest. Conversely, the shorter the tenure, the higher will be the amount of EMI. However, you will have to pay a lower amount of interest.

  • Interest Rate: The interest rate charged by the bank also determines your EMI amount. A higher interest rate depicts a higher amount of EMI and a higher interest outflow. Conversely, a lower interest rate depicts a lower amount of EMI and low-interest outflow.

But is there a simpler way to calculate EMI than using the above formula? Is there any loan eligibility calculator for home loans to determine the amount of EMI?

What is a Home Loan EMI Calculator?

A home loan EMI calculator is a financial tool that allows you to calculate the EMI by entering the necessary inputs like loan amount, interest rate , and tenure. Once you enter these details, the home loan calculator will show you the exact amount of EMI you will need to pay. It also shows the total amount of interest you will pay over the tenure of the loan as well as the repayment schedule if supported by the platform.

Importance of Home Loan EMI Calculator

Businesses to start from home

Home Loan EMI Calculator is one of the most important financial tools for making informed loan decisions. You might have different options for loans with different terms from different lenders. Home Loan EMI Calculator allows you to seamlessly compare them. Once you know the EMI amount before applying for the loan, you can plan your finances well in advance, before applying for the loan. It shows you the EMI you need to pay and therefore, you can align and tweak your budget accordingly.

In a nutshell

Using a home loan pre-EMI calculator is handy and simple. You can know the EMI amount instantly and make your loan decisions instantly. You can use the IIFL Home Loan calculator to know your EMI instantly. Once you set your budget, you can begin searching for the best property.

Further, to facilitate seamless financing, IIFL Home Loan s offers you quick home loans at attractive interest rates and flexible tenure. You should always check your home loan eligibility online. Fulfill your dream of owning your own home now!

FAQs

Q1: Should you use an EMI calculator or calculate manually?

Ans:  

Manual calculation of the home loan EMI using the formula is prone to human error. To get accurate results and know the exact amount of EMI, a home loan EMI calculator is the best option.

Q2: How much time does it take to calculate home loan EMI through an EMI calculator?

Ans:  

The home loan EMI calculator facilitates quick calculation of the EMI. You just need to enter the inputs, i.e., loan amount, interest rate, and tenure, to instantly calculate your loan EMI.

Q3: How can I compare different lenders effectively before applying for a loan?

Ans:  

A home loan EMI calculator can assist in comparing different options and selecting the best one as it allows you to calculate the EMI instantly and accurately along with the total interest outflow over the tenure of the loan.

Q4: What information do I need to use for a home loan EMI calculator?

Ans:  

To use the home loan EMI calculator, you need to enter the loan amount, tenure and home loan interest rate.

Q5: How does tenure affect my home loan EMI?

Ans:  

A longer tenure will result in a lower EMI amount while a shorter tenure will result in a higher EMI amount.

Tags

apply loan

Quick and Hassle Free Loan Processing

green ad
Prelude to Building Green - IIFL Home Loan's Guide to Sustainable Affordable Housing
Download report

Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.