A home loan is a long-term financial commitment that requires strategic planning to make the most out of it. To make the process easy, a house EMI calculator can help immensely. This is an online tool that borrowers can use to determine their loan EMIs beforehand. 

Thus, here is how you can use this calculator and the different benefits that it offers to users. 

Steps to use a house loan EMI calculator

Here are the steps that borrowers need to follow for using an online house loan EMI calculator:

Step 1: Visit the official website of a renowned financial institution.

Step 2: Move to the home loan EMI calculator page.

Step 3: Slide the pointers to enter the loan amount, interest rate and tenor.

Once all the values are entered accurately, the EMI is displayed on the screen. There are numerous benefits that people can get from using house EMI calculator.

Benefits of a house loan EMI calculator

Following are some notable benefits of using a home loan EMI calculator:

  • Instant results: Users can get the EMI values almost instantly which save their time and effort from multiple calculations.
  • Easy to use tool: Borrowers will only need to move to the EMI calculator page and slide the pointers to enter the value and determine the instalments.
  • Accurate outcomes: This online EMI calculator tool provides borrowers with accurate results based on which they can make essential financial decisions.
  • Free-of-cost tool: Users will not have to pay any money to use the tool, allowing them to use this calculator as many times as they want.

Also, there are numerous ways in which borrowers can use an online house loan EMI calculator to plan finances.

Use of house EMI calculator in managing finances

Following are some of the notable uses of the housing loan EMI calculator in managing finances:

  • Planning monthly budget: Borrowers can know about the payable monthly instalments when applying for a loan. This helps them plan their monthly budget and save sufficiently on EMIs. 
  • Customising home loans: With the help of an online EMI calculator, borrowers get to choose the appropriate credit amount and tenor. This helps them customise a home loan as per their repayment capability. 
  • Planning loan pre-payment: EMI calculators also display the loan amortisation schedule to borrowers. Accordingly, they can prepay their loans and reduce the overall payable interests of their credit.
  • Get the best home loans: This online tool allows home buyers to compare among the reputable financial institutes available. Subsequently, they can select the best credit offers at competitive home loan interest rates.

Apart from these uses, there are several ways in which borrowers can use these calculators to lower their EMIs of housing loans.  

Tips to reduce home loan EMIs

Here are some expert tips to promptly reduce EMIs of home loans:

  • Making higher down payments: Making higher down payments leads to lower loan amount requests. Accordingly, borrowers will need to pay less interests and EMIs to pay off the credit amount. 
  • Choosing a longer loan tenor: Upon choosing a longer loan tenor, borrowers get to pay lower monthly instalments. However, the overall interest on the loan notably increases.
  • Comparing lenders: This helps borrowers choose the one offering the most affordable housing loans. However, borrowers must make sure to check their market reputation to avoid being a victim of fraud. 
  • Not applying for excess amount: Borrowers should apply only for the loan amount that they need for house construction or purchase. Later, they can top-up their credit amount in case of additional funds.

Furthermore, there are several popular financial institutions that give pre-approval to existing borrowers on products like loans against property and home loans. This hastens the loan approval process. Borrowers can navigate to the official websites of these financial institutions and enter their details to check their pre-approved offers.

It is a must for home loan applicants to use an online house EMI calculator and determine their monthly instalments. This way they can plan their finances and pay the EMIs on time. This practice not only prevents them from defaulting on their credit but also gives a boost to their credit score.