The EMI calculator is a tool on the official website of the banks or finance companies to calculate the monthly installment to be charged by the lender to pay installments to be paid to the lender. The EMI calculator helps understand the borrower the loan eligibility up to which loans can be taken. The applicant needs to enter just the basic details like the borrower’s age, monthly salary of the borrower, tenure required/eligible, etc. The loans can be availed for a term of a maximum of 30 years; however, the actual eligibility depends upon the borrower’s age. The maximum age limit for salaries people is 60 years or until retirement age, whichever is early. While for the self-employed it is up to the age of 65 years. The EMI calculator helps individuals know the eligible loan amount without depending on the bank officials to know the eligibility. The figure showed that the eligibility of the loans could help the borrower plan the purchase of the house accordingly. Also, the EMI calculator helps know the repayment value that the borrower is liable to pay while taking the loans.
The EMI calculator is available on every website of the bank or finance company. The home loans are available at attractive interest rates to the borrower as low as 6.50% per annum. Also, the loans taken on the women’s name can help save 0.50% on the interest rates to the borrower. Thus taking loans on women’s names is more beneficial compared to the male person. Also, joint loans can be taken on husband & wife’s name for the home loans. The interest rates are calculated on a compounded annual basis, while the interest on fixed deposits is given on simple interest rates basis. Thus the repayment value along with interest is far higher than the principal amount. The formulae for calculating the home loans interest rates on a compounded annual basis is very complex to calculate manually by putting the values in the formulae; thus, it is very beneficial to use the EMI calculator as the algorithm is already set in the EMI calculator thus the individual has just to put the values in the EMI calculator and evaluate the values accurately without any error. The EMI has also got a graphical scale on the basis of which it can be rotated, or else values can be entered manually.
Things to know about the EMI calculator:
Helps plan the budget for the home:
The borrower can plan the budget for the homes according to the loan eligibility of the borrower. As the EMI calculator shows the loan amount that the bank can approve, the borrower may get an exact idea with the help of total savings in the bank account available and the loan amount that can be approved. Thus it becomes easy accordingly for the applicant to plan the budget accordingly for the home purchase.
Help know the interest repayment amount for the loans:
The EMI calculator helps the applicant know the exact repayment value for the loans being taken. Thus the borrower can have the exact idea of the repayment value on the loans; as it is very complex to calculate the interest value on a compounded basis, the EMI calculator can help evaluate the cost of the repayment value without any error.
Prepayment of the loans:
Suppose the EMI constitutes a very less amount of the monthly salary. In that case, the borrower can repay a higher amount on the installments by understanding through the EMI calculator and thus can repay the loans early to get the rebate on the loans to become early debt-free.
Helps understand the basic information about loans easily:
The borrower does not have to depend on bank staff or customer care support to know the information about the loans installments, interest rates going on in the market, and the repayment value of the loans. Thus all this information can be gained at the convenience of sitting at home. The customer can get all the basic information about the individual’s loan through the EMI calculator.
Helps the individual take decision on the loans:
Thus after knowing the requirement for the loans and knowing the repayment value for the loans, the borrower can get the exact idea of whether to opt for the loans or not. The EMI calculator can help an individual get the exact idea about the loan amount, interest rates, and repayment value, thus helping the individual decide whether to opt for the loans or not. If the customer finds it difficult to pay the higher EMI, which may be beyond the budget, then, in that case, the customer can drop off the plan of availing loans from the bank. In case of finding easy affordability, the borrower can easily avail of the loans.
Thus the EMI calculator can help easily understand the borrower the affordability of the loans through the calculator. The EMI calculator is designed with accuracy, and thus the chances of getting the wrong EMI is almost nil. And thus, the borrower may get accurate results.