by Shreekant Rao
Published Wed, Feb 1st 2017, 12:58 | Finance
An important part of any home loan is the equated monthly installments (EMIs) that you will need to pay to the bank or non-banking finance companies. However, manual calculations are quite tedious and time-consuming. Besides, they don’t prove to give a guaranteed solution for your financial management. EMI calculators offered by housing loan company or bank help you get a quick note on your overall EMI structure. A potential customer who wishes to buy new property can easily calculate their loan EMI with these calculators.
These online calculators offer most accurate figure based on the information provided at the time of computations and calculations. These EMI calculators help an individual to stay prepared with their finances well in advance and control their expenses so that they clear the loan debt on time. They help you save time and energy. They help you perform the most complex calculations in the simplest ever form.
The eligibility of loan depends on the individual’s repayment capacity. It is based on various factors like monthly and annual income, an additional source of income, savings and credit history, job stability, company reputation you work at, age, qualification, the number of dependents, other sources of income including spouse’s income, and additional asset in your hand. One can easily avail EMI options as per own budget & affordability.
The EMI of your loan is actually deducted based on an unequal combination of principal and interest rates. In the initial years, interest rate comprises the major portion of the loan. As the loan matures, the principal gradually gets paid, the outstanding loan amount reduces. Although, in all this scenario the EMI stays constant amount each month. Thus, EMI calculator will depict on fixed amount that you will have to pay to the bank or finance firm to clear the debt. The calculations made by EMI calculators will be based on the loan tenure as well as the interest rates that is being levied on the same.
To know about the maximum housing loan based on your annual income and other supplementary sources and the ability to repay the loan, choose from an EMI calculator that will determine the loan affordability. You will need to enter your monthly salary, interest rates preferred fixed or floating basis, loan tenure and maximum money you could afford to spend for repayment. Once you key in these details the calculator will tell you the maximum home loan amount qualified for and monthly mortgage payment you can afford to make. These calculators give access to amortization table to plan your repayment strategy in a careful way. The table will give a detailed breakup of every installment towards your loan repayment and the outstanding amount that remains pending. It’s prepared with financial mathematics. It helps borrowers make a vital decision about their home loan, prepayment, refinancing options and give interest for tax related benefits.
EMI calculator offers real-time data and the projected picture of your loan structure repayments. It helps you stay mentally prepared with the savings you can do for paying your monthly installment. You can also cut down the finances wherever necessary and work towards a disciplined approach for your loan repayment. There are a number of comparison sites that have an online system-generated tool which helps aspirant get access to information on maximum permissible loan amount and the affordable EMI on your housing loan. They help you plan your fund's better and more streamlined manner.