A home loan EMI or equated monthly instalment is the amount that is paid monthly by the borrowers to their home loan lenders. Home loan EMI which is paid consists of a part of the principal amount of the home loan along with the pre-decided interest rate in a fixed ratio. After a loan is issued, the borrower is mandated to pay the interest along with the principal home loan amount every month until the entire outstanding loan is cleared.
Home loan EMI Calculator:
Home loan EMI calculator is a feature provided by the banks and financial firms to the borrowers to make it simpler and easier for them to calculate their EMIs towards their home loans and accordingly evaluate and plan their home loans. It behaves like a financial proposal instrument for home buyers.
The longer the term of a home loan is issued, the smaller is the monthly instalment interest amount levied on the home loan which implies that a longer tenure assists the borrowers in a way to reduce their EMI.
A home loan EMI calculator has proved to be of a lot of advantages. It has helped the consumers get a better understanding and knowledge of the amounts that they would require to pay towards the home loan EMIs without much of a hassle. It helps its borrowers to evaluate all the factors and make their borrowers notified of the home loan interest, which will outflow every month towards the loan.
This assists the borrows to self examine the amount which will be required towards the home loan and at the same time, calculate and assess their donation and requirement of the expense of the residential property.
This is why, calculation of EMI pre hand, is considered one of the most crucial tasks for the borrowers, to evaluate their eligibility and at the same time instigate their home buying plan better.
A few banks and financial institutions even provide some special advantages. Most of the banks limit the range of consumers who can apply for home loans by putting several restrictions under eligibility criteria. A few banks provide special home loans, catering to the needs of all age communities and the business sector. These banks might provide home loans for as long as a tenure of 30 years, and other telescopic repayment alternatives. They also provide flexible price options which particularly directs to attracting the young home buying investors, helping and allowing them to possess a home at a young age.
Other features of the Home loan EMI calculator:
Over the loan period, the debt of the loan process reduces, as one keeps on making payments every month. This process is called loan amortization. There is a specific table for the same provided to the home loan investors. The table gives the borrowers a detailed analysis of the repayment amount along with the principal amount and the home loan interest rate.
The home loan EMI calculator also helps to calculate the loan amortized, further, helping to make the loan amortization schedule and alter the same. It informs its borrowers about the ratio of the principal sum and the home loan interest rate that the individual would need to pay.
Various repayment options provided by various firms and banks:
To attract more and more people, banks have come up with schemes specialized in each of them. These attract a large group of people as they aid them to reduce their home loan burden.
- Banks might provide options that are directly linked to an individual’s income growth. In the introductory years, borrowers have a chance to issue a higher loan amount with repayment in lower EMIs. As the income of the borrower increases so does the repayment home loan EMI steps up.
- Contrary to the above scheme, another scheme provides its borrowers with a chance to reduce their repayment amount after the initial years have passed. The EMIs are usually higher for such individuals in the primary years and gradually goes on decreasing as the years pass by.
- Suppose an individual has invested in an estate that is under construction. In that case, the individual has the opportunity to pay only the home loan interest amount until the home loan is ultimately disbursed, and only after that is the individual required to pay the home loan EMI.
Usually, the government-run banks and financial firms are very flexible and helpful to their borrowers. They make changes and provide schemes to their customers to fulfil their requirements without much trouble and hardships!