When applying for a housing loan, it is always a good idea to be wary of your financial commitments and existing spending. This helps in proper financial planning. A home loan interest rate calculator, on top of that, can come in handy in determining the right monthly installments or EMIs for you while considering your other obligations. The Bajaj Housing Finance home loan calculator helps in quick calculations and provides you with an accurate estimate, which you will need to pay towards the home loan EMI. Read on to know all about the features and benefits of the online loan calculator.
Features & Benefits of Bajaj Housing Finance Home Loan Calculator
The most striking feature of the home loan interest rate calculator is that it offers the borrower an estimated EMI amount, which they will need to pay on their housing loan. This estimate allows the borrower to chalk out a suitable budget and reduce financial stress. Additionally, with the help of the home loan calculator, a borrower can find out the exact EMI they can afford to pay every month on top of their current expenses.
Listed below are some of the other benefits of using a housing loan EMI calculator.
The Bajaj Housing Finance home loan calculator can be easily accessed from any location at any time provided there is stable internet connectivity. Moreover, the tool can be used multiple times to try out different combinations. There is no need for the borrower to visit the lender personally since the calculator is available online for free.
The online calculator works with 100% accuracy leaving no room for errors. This is because the device follows a mathematical formula to generate automated results that do not involve manual calculations.
No Complex Calculations
Using a home loan calculator can help you save a lot of time since there is no need for complex calculations. All you have to do is enter the basic details – the principal amount, rate of interest, and loan tenor – and the tool will do the rest.
Helps in Financial Planning
By knowing the estimate of the monthly payable EMIs in advance, borrowers can plan their finances. They may even choose to experiment with the different parameters till they find a suitable EMI amount that fits the budget.
How to Use the Home Loan Interest Rate Calculator?
The home loan calculator by Bajaj Housing Finance is extremely user-friendly. It only requires a few clicks to get the result – access the free online tool and enter the value of the principal or loan amount, tenor, and interest rate. The calculator will instantly show you the EMI amount to be paid based on the following formula:
EMI = P*r* (1+r)^n/([(1+r)^n]-1)
Where P = Principal or loan amount
r = Rate of interest (per month)
n = Tenor (in months)
Tips to Determine the Right EMI Amount
When determining the EMI amount for a housing loan, borrowers must keep the following tips in mind:
- Choose a loan amount that suits your appetite and budget. Do not opt for an amount more than you can afford.
- Assess your monthly expenses and existing obligations, if any. You do not want to spend a larger portion of your monthly income or savings on paying exorbitant EMIs.
- Use a housing loan eligibility calculator to assess your repayment capability
The decision of taking a home loan is certainly a major step in life – a long-term financial commitment. Therefore, it is important to understand all its aspects before taking a call. With the above features and benefits, a home loan interest rate calculator can be useful in providing insights into housing loan EMIs and how one should plan the repayment schedule.