Home Loan EMI Calculator – Calculate Your Housing Loan EMI Online
Given the high price of real estate in India, purchasing a house can be a challenging task without an external source of finance. An increasing number of prospective home buyers are opting for this type of credit to fund their house purchase. It is no surprise that housing credit grew by over 16% in FY18.
The primary responsibility of a potential borrower is to have an exact estimate of the EMI amount they are liable to pay. One can take advantage of ahome loan EMI calculatorto arrive at the precise number.
How can home loan EMI calculator help you?
Equated Monthly Instalment or EMI is a fixed amount that a borrower must pay back to the lender every month till their tenure ends.
Calculating the EMI and its components can be a cumbersome exercise for first-time financers. Ahome loan EMI calculator Indiacan do these complex calculations in no time, and save you from the trouble of doing it manually.
- Manually performing such complicated home loan EMI calculations can be both time-consuming and inaccurate. Ahousing loan EMI calculatorsaves the valuable time of prospective home buyers.
- It gives you an accurate estimate, which is pivotal for financial planning. There is no probability of any inaccuracies or ambiguity.
- The EMI calculation procedure for each type of loan is different. For example, home loan EMI calculation is different from personal loan EMI. TheEMI Calculator for Home Loanis specific only for home loans.
- The online calculator is free for unlimited use. You can check the EMI for various loan amounts and determine which amount suits your financial situation.
The formula to determine home loan EMI amount
All online calculatorsuse a specifichome loan EMI calculator formulato arrive at the exact EMI amount, which is –
E = [P x R x (1+R) ^N] / [(1+R) ^N-1] Where:
- P is the principal loan amount
- R is the monthly interest rate
- N is the loan tenure in months
Ahome loan EMI calculator onlinecan help you find the exact amount without fail.
For example, assume that a person avails a home loan worth Rs. 1 Crore for a tenure of 15 years at an agreed-upon interest rate of 12%. So, according to the formula –
E = [1, 00, 00,000 x 12 x (1+12) ^ 15] / [)1+12) ^ 20-1]
Ahome loan EMI calculator Indiawill instantly help you compute the exact result, which in this case should be Rs. 1, 10,108.
Now, each loan EMI has two components – a principal component and an interest component. At the beginning of the tenure, the interest component is high, and the principal part is relatively low. The equation changes with every passing month, as the total interest to be paid reduces faster. So, with every EMI paid, the interest component decreases while the principal component increases.
How to use BhuMe online home loan EMI calculator?
BhuMe is one of the leading financial resources providers. Thehousing loan calculator Indiaavailable here is very easy to use.
All you have to do is enter the loan amount, interest rate and the loan tenure in years.
The exact EMI value will be calculated and displayed within seconds.
Advantages of using BhuMe Home Loan EMI calculator
There are numerous advantages of using the calculator available at this website.
As a debt category, the home loans corpus is expected to grow faster in the coming years. An onlinebank EMI calculator for a home loanis the go-to tool for all prospective debtors.