The Indian real estate market is a pillar of this country’s economy, providing the second-highest employment opportunity after agriculture. This real estate sector accounts for approximately 6-7 per cent of India’s economy, and according to a market survey, the industry is all geared to contribute 13% to the GDP by 2025, given all conditions and measures are well implemented.
This growth in the realty sector has also boosted India’s housing loan segment. With more individuals opting for such finance, the need for increased awareness is ever increasing. For instance, a home loan EMI calculator online can ensure proper financial planning.
Such tools also aid in comparison to home loan interest rates, enabling borrowers to pick the most suitable option.
Useful types of home loan calculators:
1.Home loan EMI calculator
A home loan EMI calculator determines the amount one would need to service as EMIs for a particular housing loan. Such a home loan EMI calculator calculates one’s Equated Monthly Instalment based on his loan amount, interest rate and loan tenor and instantly displays the result.
The home loan EMI calculator online helps to plan the cash flow for easy home loan servicing. Several lenders in the market offer home loans at considerably low interest rates along with additional features like a top-up loan, flexible repayment options, and customised insurance schemes.
Home loan EMI calculator works on a simple formula: EMI= [P x R x (1+R) ^N]/ [(1+R) ^N-1]
Here, ‘P’ denotes the principal or loan amount; ‘R’ denotes interest rate per month, and ‘N’ denotes number of monthly instalments.
2.Home loan eligibility calculator
Owning a home may require financial assistance for working professionals, and home loans provide the necessary financial support in doing so. Home loan eligibility is the most important factor that indicates a borrower’s creditworthiness to avail the home loan and his/her ability to pay back the amount.
The online home loan EMI calculator considers your eligibility based on the borrower’s age, monthly income, prior loan commitments if any, and credit history. For single women buying their first home, lenders provide lower housing loan interest rate than the market rate. Hence knowing the eligibility prior to applying makes the process easier and quicker.
3.Home loan affordability calculator
The home loan affordability calculator is another calculator for a home loan that gives a customer a clear understanding of his/her current financial situation; based on home loan eligibility and the amount the borrower can gather or arrange from his/her sources.
Even though a home loan EMI calculator online provides the amount of EMIs one needs to pay, the home loan affordability calculator helps to keep the focus on affordable properties as per the budget and saves one from wasting time on unreasonable deals.
The calculation is based on the down payment amount, monthly income, loan tenor, interest rate per annum and other monthly EMIs. This is one of the benefits of calculating EMIs, affordability and eligibility before applying for a home loan.
Customers can also look for pre-approved offers extended by some of the reputed Non-banking housing finance companies to expedite the home loan procedure without any hassle. Such pre-approved offers are extended on several financial products such as home loans, loan against property and more. One can check his/her pre-approved offer by submitting name and contact information.
Before applying for a home loan, understanding how the calculator for home loan functions is necessary to manage finance appropriately.
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