The demand for property has grown immensely within the past few years, because of the will for homeownership among millennials. they’re willing to take a position in properties as a residence or use it as an asset to get income. no matter the aim, the nationwide land market saw a growth of 84% in Q4 of 2020.
Among which property priced at over Rs.50 lakh constitutes 57% of all sales.
If you’re availing a better amount it is often made possible thanks to the variety of reforms during this market like RERA, GST, rebate on stamp tax, etc.
However, like all other debt, it can hurt borrowers’ credit profile if not repaid within the tenor.
Thus, it’s necessary to assess the housing loan EMI calculator before applying for this credit. it’ll help individuals to form hassle-free repayments and as a result, they will manage their financial goals far better.
How to check EMI employing a calculator?
Following is that the stepwise procedure to use a home equity credit calculator.
Step 1: Open a web portal that gives such calculators to be used. Preferably, one should utilize the EMI calculator from his/her chosen lender.
Step 2: Enter the loan amount, tenor, and rate of interest proposed to you.
Step 3: On entering the knowledge, the EMI, total interest payable, and a net cost of borrowing appear on the screen.
Step 4: you’ll adjust the loan amount and tenor via the sliders to reach an appropriate EMI.
Hence, using this tool, individuals can adjust their home equity credit repayment structure with ease.
Benefits of employing a calculator
Some of the key benefits of calculating EMIs before taking a home equity credit are listed below.
a) Prompt calculation
By the assistance of home equity credit EMI Calculator, individuals can check their EMI online. Since it’s a free-to-use tool, individuals can enter the loan components repeatedly, with none restrictions. Using this tool can help one determine the simplest home equity credit repayment options and plan his/her finances effectively.
This tool uses the EMI formula mentioned below.
EMI = P × r × (1 + r)^n/((1 + r)^n – 1)
P= Principal, r= monthly rate of interest , n= number of EMIs
This formula is curated within the tool in order that individuals don’t need to derive the house loan EMI manually, which may be a time-consuming process.
Similarly, lenders also offer a home equity credit eligibility calculator that helps in deriving an equivalent promptly.
b) Scope for adjustment
A bar or a slider are often expressed as an EMI Calculator. Hence, borrowers can adjust their loan amount and tenor to succeed in an answer that facilitates easy repayment. It also helps them to scale back their housing loan tenure and their EMI largely, with meaningful changes.
For instance, if you apply for a loan of Rs.60 lakh at a rate of interest of seven for 16 years. during this case, the EMI would be Rs.52,032 and interest payable is Rs.39,90,321. However, if you reduce the tenor to 12 years, the new EMI would be Rs.61,703, and interest payable would be Rs.28,85,207. Thus, you’ll save Rs.11,05,114 by reducing the repayment tenor by 4 years.
However, therein case, you furthermore may got to assess his financial ability to pay a better EMI amount without compromising on other expenses.
c) Error-free results
While employing a manual process increases the prospect of error in calculation, this tool reduces such chances. Hence, individuals can use this tool on the go and obtain an accurate result whenever they enter the small print.
d) Helps in comparing rates
Choose an HFC who extends high-value home equity credits to eligible candidates at a competitive home loan rate of interest.
The financial organization must also provide pre-approved offers that simplify and expedite the loan availing process. There are various offers that are available on a variety of monetary products like loans against property, home loan and lots of more.
The pre-approved offer are often checked by feeding individual names and their registered mobile number.
Therefore, individuals can manage any short or significant liabilities with ease while using this calculator. The pie-chart representation of the loan components allows them to accept a home equity credit EMI that suits the simplest of their financial capability.