1. What is a home loan EMI calculator?
A home loan EMI calculator is an online utility tool that helps you to calculate your monthly loan installment amount easily by eliminating the manual time-consuming calculations. This calculator can evaluate the EMI amount on a taken loan. The home loan EMI calculator has a very simple and easy-to-understand interface. There are three slides given in the calculator with loan period, loan amount, and interest rate. You need to fix the sliders according to your amount or specified time and the EMI calculator will show the total amount payable with interest.
2. What is Home Loan EMI Calculation Formula?
The formula for Home Loan EMI Calculation: EMI = [P x R x (1+R)^N]/[(1+R)^N-1] Where, E: Equated Monthly Installment, P: Principal or loan amount, r: Interest rate per month, n: tenure of loan (in month or year). Note that this formula does not count the home loan processing fee charged by the bank. Let's understand the home loan EMI Calculation with the following example- Mr. Amit had borrowed a home loan amount of Rs. 3,500,000 (Principal amount or P) from a bank at the rate of interest (R) 8.65% p.a. With the tenure of the loan (N) is for 30 years or 360 months. By applying the above-mentioned formula for your home loan EMI, the monthly payable installment amount is Rs. 27,285. P = 3,500,000 R = 8.65% N = 30 years (360 Months) Interest Rate Applied = 8.65% Monthly EMI = Rs 27,285 Yearly EMI to be paid = Rs. 27,285 * 12 = Rs 327,419
3. How to Use a Home Loan EMI Calculator?
EMI calculator is a simple and easy-to-use utility software for your EMI calculation. Anyone can operate it and can get the result in a few seconds. When you go to the calculator – principal loan amount, home loan rates, and loan tenure – you just need to enter the three given sliders or you can feed the values in numbers in their respective slots on the home loan EMI calculator. Once you filled in the three values (principal loan amount, home loan rates, and loan tenure), the calculator will show you the home loan EMI amount within seconds. Likewise, you also can change and adjust the figures, and the calculator will show you instant and accurate results.
4. Benefits of a home loan EMI calculator?
Equated monthly installment or EMI is an integral part of loan repayment. You need to be accurate to calculate the EMI amount to escape any mistakes so here we are with the Myitronline EMI calculator that makes your process effortless with straightforward accuracy. You can use the Myitronline EMI calculator from anywhere at any time without moving out of your comfort zone. Some of the major benefits are expressed below- Finance planning- Financial planning is a very important part of our life. However, a calculator EMI calculator for home loans helps you to remove future financial problems. You can already get your housing loan EMI in advance, accordingly, you can easily plan your budget more efficiently. Knowing the right tenure: The home loan calculator also helps you go with the right tenure of the loan. In case you are capable enough to pay a higher amount of EMI then you can choose a shorter loan period (tenure) and pay off your loan earlier. Easy Calculation- Calculating the payable EMI amount takes a lot of time if done manually. And here A home loan EMI calculator helps you to save your precious time and energy and shows you the estimated payable EMI in seconds. You just need to feed the value such as loan amount, tenure, and interest rate, and the calculator will show the payable monthly EMI in seconds. The home loan calculator eliminates complicated calculations.
5. What is a Pre-Approved Home Loan?
A pre-approved loan is a type of loan which is approved/agreed upon before finalizing the property deal. Regardless, lenders can also ask you to furnish a few pertinent documents, such as the ITR, PAN card, address proof, salary slips, etc. Moreover, the lender can ask for your credit report for review. When the validation process is completed, the lender will allocate a pre-sanction letter to you. You must keep in mind that If you fail to finalize a property within the prescribed validity period, then again you will be required to re-apply for the pre-approved loan.
Frequently Asked Questions
Are EMI calculators more accurate than excel calculators?
An excel calculator also gives you the best result only if you know it very well. But an EMI calculator can show you the result in seconds with ease and comfort.
How can I use an EMI calculator to find the best loan for my needs?
You can use an EMI calculator to find a loan that suits you with the least amount of EMI. You can also compare the loan from bank to bank according to the interest rates of the bank.
Who can apply for a home loan?
Salaried individuals of Government and private sector. Professionals (Doctors, chartered accountants, engineers, dentists, cost accountants, management consultants, company secretaries, etc.) Self-employed in business.
What is the formula to calculate the EMI?
The formula for calculating EMI is P x R x (1+R)^N/[(1+R) ^ (N-1)] Where “P” stands for loan amount or principal amount in the formula. “R” denotes the “Rate of interest” and “N” stands for the number of years.
What is the minimum borrowing amount under a home loan?
The minimum borrowing amount under the home loan is Rs. 3 lakh.
When will my home loan EMI be due?
Your EMI will be due on a fixed date each month. This date will be informed when your loan is paid.
Can I claim a home loan for home modifications or a home extension?
Yes. You can claim a home loan to construct, repair, renovation, and home extension.