Not everyone who applies for a loan gets approved for one. Only those who meet their lender’s eligibility requirements get approved for a loan. All lenders have strict home loan eligibility requirements. Lenders put forward these requirements to minimize cases of loan default and ensure that loan EMIs will come on time. Borrowers can check their home loan eligibility using a home loan eligibility calculator. This calculator allows borrowers to figure out the loan amount they can comfortably repay based on their income. 

Borrowers planning to avail of a home loan are also advised to use a home loan calculator. A home loan calculator is a simple online tool that borrowers can use to understand their EMI obligation with respect to the loan amount they wish to borrow. Using a home loan calculator is quite easy. Simply follow these steps to use a home loan calculator. 

– Go to your lender’s website and access the home loan calculator. 

– Enter the loan value that you wish to avail of. 

– Next, enter your desired tenor and the home loan interest rate you are being offered. 

– As soon as you have entered these details, the home loan calculator will give you your tentative EMIs based on the information provided by you. 

Let us now look at the benefits of a home loan calculator and reasons why a borrower must use this calculator. 

Benefits of a Home Loan Calculator 

– Home loans are loans secured by the property bought with the loan money. In other words, if a borrower fails to repay the loan or defaults on it, the lender can sell the home bought with the loan money for loan recovery. Thus, borrowers must avail of a home loan after proper planning — they should borrow what they will be able to easily repay. A home loan calculator allows borrowers to try out various combinations of loan value, tenor and rate of interest until they have arrived at an EMI figure that they will be able to easily repay. 

– With the help of a home loan calculator, borrowers can compare various loan offers made to them by different lenders and figure out which offer will be the best and most lucrative for them in the long run. Thus, a home loan calculator helps borrowers choose the right loan partner for them. 

– Using a home loan calculator, borrowers can also understand how prepayments will affect their loan EMIs and repayment tenor. The calculator helps borrowers time their repayment the right way. 

– Lastly, the home loan calculator is quick and accurate, which is not the case with manual calculations. Thus, it makes calculating EMIs, comparing loan offers and doing repayment planning a lot easier.

Final Words 

All in all, a home loan calculator is a highly handy tool that all loan borrowers must use. These calculators are quite easy to find — simply search for them on the internet and you get a hundred different options to choose from. If you are planning to avail of a home loan, remember the golden rule — borrow what you can easily repay and never more.