Those planning to apply for a housing loan must make sure they are not borrowing more than they can afford to repay. A home loan is a type of secured loan. Borrowers use the loan money to buy a flat or home and this property serves as collateral. In case the borrower defaults on loan repayment, the lender can sell the property for loan recovery. Thus, borrowers must avail of a home loan after careful planning. A home loan EMI calculator is an easy-to-use tool that borrowers can use to plan their loan journey. Let us look at how a home loan EMI calculator can help borrowers with home loan planning. 

Benefits of Using a Home Loan EMI Calculator 

It Helps You Compare Loan Offers and Figure Out the Best Loan For You

A home loan EMI calculator is an easy-to-use tool that borrowers can use to compare offers from various lenders. Home loan borrowers should never accept the first offer that comes their way. Instead, they should get offers from different lenders, compare the home loan interest rates being offered by them and with the help of a home loan EMI calculator figure out which lender is giving the offer that will turn out to be most beneficial for the borrower in the long run. In the end, they should go with this lender only. 

Home Loan Borrowers Can Use it Do Financial Planning 

Housing loan borrowers can use the home loan EMI calculator to do financial planning. The calculator gives borrowers their tentative EMIs. Once a borrower knows their EMIs, they can plan their monthly budget in such a way that they have ample money left at the end of each month to clear their EMIs. This way, the calculator saves borrowers from late fees and penalties and helps them build a good credit score. 

The Home Loan EMI Calculator is Quick and Accurate 

Borrowers can calculate their home loan EMIs using manual calculations also. However, the formula for calculating EMIs is a tricky one with several variables. This makes the process of calculating EMIs using an EMI calculator difficult and time-consuming. Further, it is nearly impossible to try out various combinations of loan tenor, loan amount and rate of interest and arrive at an EMI figure that works best for the borrower using manual calculations. The home loan EMI calculator is quick — one can try as many combinations of loan tenor, loan value and rate of interest as one wants. Further, while manual calculations are prone to errors, a home loan EMI calculator can be trusted for accuracy every single time. 

In short, if you are planning to avail yourself of a housing loan, use the home loan EMI calculator. It is an easy-to-use tool that offers several benefits. Further, also use a home loan eligibility calculator to figure out the loan amount you qualify for. Applying for a similar amount will ensure quick approval and beneficial loan terms and conditions.