How to use Home Loan EMI Calculator
SuGanta.com Home loan calculator is very easy to use. Any individual who is
looking to get a home loan or has already taken a loan can use it to check their
EMIs. Take the following steps to check EMIs using this calculator:
Step 1: Enter the amount you want to borrow
Step
2: Enter the tenure (in years) for which you want to
borrow
Step 3: Enter the rate of interest
Step
4: Click on “Calculate Your EMI”
After you take all these steps, you will be able to view your monthly instalment
on your home loan.
How the Home Loan Calculator Helps You
Using the EMI calculator to know your EMIs in advance can be helpful in many
ways. Check out some of the reasons why you should use it:
How much should you borrow? The calculator can help you decide the
home loan amount, based on how much EMI you can afford to pay from your income. In other
words, you can plan your finances better.
How long should the tenure be? Knowing the EMI you can afford to
pay every month, you can determine the right tenure for your loan.
How much down payment should you make? Using the home loan EMI
calculator, you can figure out how much you should pay as the down payment, in order to
save maximum on your interest while keeping
your EMIs to minimum.
Factors Affecting Home Loan EMI
There are multiple factors that can affect your home loan EMI. Check out some of
the key factors below:
Loan amount: The loan amount your borrow affects your EMI. Higher
the amount you borrow, the higher your EMI.
Loan tenure: The tenure for which you take a home loan also affects
your instalments. If the tenure is longer, your EMI will be lower. Remember, longer
tenure also means you pay more interest over
the period as compared to a shorter tenure loan.
Interest rate: In case of floating interest rate loans, your EMI
will change in line with the fluctuations in interest rates. If the rate goes up, your
EMI also goes up.
An Illustration to understand how your EMI changes with these
factors:
The table below shows estimated EMI based on different loan amounts and tenures.
| Estimated
EMI* (assuming rate of
interest at 7% p.a.)
|
| Tenure
|
Loan amount
Rs 30 Lakhs
|
Loan amount
Rs 60 Lakhs
|
Loan amount
Rs 1 Crore
|
| 5
years
|
Rs
59,403
|
Rs
1,18,806
|
Rs
1,98,011
|
| 10
years
|
Rs
34,832
|
Rs
69,665
|
Rs
1,16,108
|
| 20
years
|
Rs
23,259
|
Rs
46,518
|
Rs
77,530
|
| 30
years
|
Rs
19,959
|
Rs
39,918
|
Rs
66,530
|
How to Reduce Your Home
Loan EMI
If you are looking to get a new home loan or if you already have one, here are some
tips to help you reduce your home loan EMI:
Check with multiple lenders before finalizing your loan. Choose the
one that offers
you the best deal.
Don’t borrow more than you can afford. If you can’t afford to repay on
time, don’t
borrow.
Make a higher down payment. Lower the amount you borrow, lower the
EMI.
Choose a longer tenure (but this also means you will be paying more
interest over
the period).
Make a prepayment on your loan, if and when possible.
Apply for a balance transfer home loan to get a better deal.