Why Should Borrowers Use a Home Loan Eligibility Calculator – Truth Revealed!
Are you looking to buy a home through a home loan? If yes, it is an excellent idea to compute your home loan EMI before signing the final deal. A helpful tool like a home loan eligibility calculator can assist you with it.
EMI stands for equated monthly installments that must be met in exchange for the home loan from lenders. You can compute your EMI with any online home loan eligibility calculator.
What is a home loan eligibility calculator?
The home loan eligibility calculator is a tool available online for computing your monthly EMI. Based on a few details regarding home loans, the EMI calculator can provide you with the exact EMI amount you must repay. This even includes a chart displaying your repayment schedule and overall payment details.
Home loan eligibility calculator benefits
The home loan eligibility calculator comes with various benefits. It is a valuable tool that allows you to plan out your home loan decisively.
Check out the various benefits of using this calculator:
Convenient, simple, accurate, and instant
Routing for manual calculation for home loan EMI may be prone to errors. The online home loan eligibility calculator solves this issue as it always provides you with the correct outcome. When it is about home loan planning, you must not go wrong, especially with numbers.
Instant calculation
Using a paper and pen to calculate the home loan EMI takes time. However, with the online calculator, you can efficiently perform such complex calculations with ease. Note that you do not require checking or double-checking the final calculation as such calculators always provide an accurate outcome.
Ultimate planning
EMI calculators can assist you in protecting yourself from financial issues in the future. Knowing your home loan EMI beforehand can help you plan your budget efficiently and get an outcome as per your repayment capacity.
Helpful for loan management
Home loan lenders often factor in your repayment capacity when assessing your application. Lenders generally prefer lending only if your monthly loan repayment obligation involving your new home loan is under 50 percent of your monthly income. This is one of the crucial housing loan eligibility parameters factored in by lenders.
With a home loan EMI calculator, you can better understand if your loan obligation is within the 50 percent mark. If it is not, you can either consider foreclosing or prepaying your existing loans to lower your EMI obligation. You even can opt for a lower LTV ratio or choose a higher repayment tenure to reduce your overall EMI obligation.
Comparing the loan offers
You can use the home loan EMI calculator to compare the different loan offers from distinct lenders. The result displays the overall borrowing cost together with the EMI. This assists you in narrowing down the best option as per your preference and suitability.
Zero personal details are required.
Most online home loan calculators are free, i.e., you do not need to worry about the various security issues because you do not have to reveal your identity details to check the outcome.
Ending note
Once you know your EMI through the home loan eligibility calculator, it is time for you to apply for a home loan with the preferred lender. After loan approval and disbursal of the loan amount, always ensure to timely repay the home loan EMI to maintain a good credit score.
