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Financial planning made easy with home loan emi calculator
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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.
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A home loan is a secured loan, wherein the purchased property acts as collateral. Thus, if you default on the loan, the lender reserves the right to seize your property to recover the loss. To avoid this, you should calculate your monthly instalments by using a home loan EMI calculator before applying for a home loan. This can help you plan monthly budget efficiently, thereby allowing you to repay the home loan within the specified tenure without burdening your cash flow.
Here’s how calculating home loan EMI can make financial planning easy for you:
You should avail a loan amount that can be repaid comfortably without straining your finances. Usage of a home loan EMI calculator will provide a better idea as to how much home loan amount you can afford. This will make repayment easier and prevent chances of default.
The tenure of the home loan decides the monthly instalment. A longer tenure will reduce your home loan EMI, whereas a short tenure would attract a higher EMI. Therefore, as per your income and expenses, choose a loan tenure that makes your EMIs affordable. You can find the best tenure with the EMI calculator.
Having an estimate of the EMI will also help you plan the prepayment of your home loan. This can reduce the interest payout and help you get rid of the debt sooner. For instance, if you are aware of your EMI, you can time your investments accordingly and make part-prepayments with ease.
Here is how you can use the home loan calculator.
Steps to Calculate the Home Loan EMI Using a Home Loan EMI Calculator.
It’s possible to calculate your monthly instalment with the help of three important parameters i.e. the loan amount, loan tenure, and interest rate. All you have to do is enter these values into the online EMI calculator and get an estimate of the monthly instalments. Use various permutations and combinations of these three inputs to obtain an EMI that suits you the best.
The basic formula used by EMI calculator is:
E = P x r x (1+r)^n/ ((1+r)^n-1)
Where,
A home loan EMI calculator can make the process of availing and repaying the home loan simple and convenient. So, what are you waiting for? Calculate your home loan EMI and purchase your dream house with a home loan today. Make sure to review the lender carefully before availing a home loan to avoid any inconveniences later.
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.
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