We use a calculator to keep track of even our daily expenses. So, why overwork your brain to calculate the equated monthly installments (EMIs) before taking a Home Loan? You can find several Home Loan EMI calculators online. Let them do the work for you. All you need to do is to key in the loan amount, the loan duration and the interest rate.
Home Loan EMI Calculator
The Home Loan EMI calculator will help you find an EMI amount that fits your budget. You can also change the variables to reach your desired EMI amount.
Factors that can Affect Your EMI
But before using the calculator, you must know there are two further factors that can alter your EMI amount. They are:
- Credit History
TransUnion CIBIL maintains the CIBIL score and credit history based on your past and existing loan records. All lenders have a look at it to decide whether they should grant you the loan. They also decide on the interest rate based on your CIBIL score.
- Interest Rate
Lenders may offer an applicant with a good CIBIL score the lowest Home Loan interest rates. On the other hand, an applicant with a poor CIBIL score may be charged a higher interest rate. This increases the loan EMI. A non-banking financial company (NBFC) like Bajaj Finserv can offer you a Home Loan of up to Rs. 5 crores at an attractive interest rate.
When you apply for a Home Loan, the lender may give you the option of a fixed or a floating interest rate. The floating interest rate keeps changing throughout the loan tenor, so does your EMI. The fixed interest rate is higher than the floating rate, but the EMI remains the same throughout the loan tenor.
The Benefits of a Home Loan Eligibility Calculator
Lenders can offer you up to 90% of the buying price of the house, depending on your eligibility and the loan amount. The lender will check whether you can repay the EMI after meeting all your expenses with your salary and other income sources. They will adjust the loan amount and the tenor to give you the best option. So, it is better to check the options on a Home Loan eligibility calculator before applying for a loan.
If you wish to own a big house, one salary may not be enough to pay the EMI. If your spouse is working too, you can make a joint application. Before that, check how much EMI fits into your budget after meeting all your other expenses. The chance of your Home Loan approval is higher then, as the lender is more confident that you can pay the EMI on time. Besides, there are two persons to repay the loan, which helps in sharing the burden of your loan. The lender fixes the interest rate after considering the CIBIL score and the credit history of both applicants.
A salaried employee working for a reputable company may have to submit only a few documents. These would include the bank statement, salary slips, and identity proof. Well, it can differ if you are self-employed or a businessman. The lender may ask you for extra documentation. These are mentioned alongside the EMI calculator.
- Detecting Limitations
You can come across possible limitations by checking the Home Loan EMI calculator. For example, the lender may decide to lend you up to 90% of a property valued only below Rs.30 lakhs. This limit can reduce as the property value increases.
Besides the loan amount, the lender fixes the interest rate after considering the CIBIL score and credit history of the applicant(s). You may have a good credit history and a good CIBIL score, but your spouse may not. In that case, the lender can charge a higher interest rate.
Also Read: A guide for the first time home buyers
To Sum Up
A Home Loan EMI calculator can help you smoother out your process of buying a home. So why wait?
About Anamika Verma
Anamika Verma writes various types of tutorial related to finance and has a vast experience as a financial advisor. Her expertise on financial issues is well sought after and she is known for her in-depth knowledge topics such as loan, fund. house finance. She has written more than 1000 blogs on topics related to house, home, home improvement and much more. A post-graduate in finance management, Anamika loves to travel or cook in her free time.