Know About the Working Process of EMI Calculator?
As far as EMI calculator working process is concerned, it is an easy to use tool that helps you in calculating the monthly amount payable to the lender (that may be bank or financial institution) on monthly basis. It is required to calculate the EMI applicable on your loan amount. You need to use the sliders above to adjust the values for principal amount, time duration and rate of interest.
Here, you need to follow a few steps to calculate you EMI amount.
Here, you need to use slider to select the loan amount and select the loan tenure in months in using slider.
Move the slider and select interest rate and recalculate your EMI anytime by changing the input sliders.
Your EMI will calculated instantaneously, when you move the sliders.
What Is Principal Loan Amount?
PLA or Principal Loan Amount is the original amount lent to you by the bank or lender – depend on your need and the motive of the loan. If you lend higher amount of money, you will have to pay a good amount of EMI.
Benefits That You Will Get from Home Loan EMI Calculator
There are a number of added benefits that you will get from home loan EMI calculator. You have to enter 3 values and you will get a clear view of the loan amount and other details. You can know how much you have to pay and also get benefits in tax saving.
What Is Involved in Home Loan EMI
There are various vital points to taken into consideration for home loan EMI. It is vital for you to know that there are many other factors upon which amount of home loan are granted can vary that include, but not limited to:
- Salaries, self-employed professionals or businessmen along with details of income
- Age, qualification and number of dependents
- Co-Applicants income and saving history
- Assets, liabilities, stability and occupation of the borrow with continuity
- Loan eligibility depends on the value of property selected by you.
Tenure or Time to Repay
Tenure matters more that refers to the total time frame – given for the repayment of the loan. This repayment time is calculated in months that may be for longer time.
Rate of Interest
ROI or rate of interest is charged on the main amount of loan that is called as Principal loan amount. Interest rate depends on the loan type and bank varies from bank to bank.
Keep in mind that rate of interest has direct bearing on your EMI amount. In this way, it is important to compare interest rate across banks prior to opting for the loan.
FAQs on Home Loan EMI Calculator to Clear All Your Doubts
Q1: Show Me the Ways, How can I use the Home Loan EMI Calculator”, mainly to find the best bank to apply for a loan?
Using Home loan EMI calculator is the best option to help you in knowing about the loan amount and calculate EMI of different banks. It will help you to take the right decision.
Q2: Should You Use Home Loan EMI Calculator or Excel Calculator – Which One Is Better?
Excel calculator is the best option for those who are good with formulas and uses. Home Loan EMI Calculator is specifically designed to cater to the need of calculating EMIs.
Q3: Clear who calculate the Home Loan EMI – Bank or borrower or Is there any difference in the calculation of home loan EMI by bank or EMI Calculator?
You need not worry about it because it is exactly the same, that you get after enter the three values to calculate EMI. It’s all calculation; output will definitely depend upon the input.
Q4: Is home Loan EMI calculator helpful in understanding how much EMI is payable after repay a certain amount of principal as a chunk during the loan tenure?
You have to provide the right details of the balance outstanding principal and the timing to repay to know about the right EMI to pay every month.