Over the past 6 years, the Indian home loan market witnessed a CAGR of 16%. Several factors like affordable cost of real estate, hike in demand for property and improvement in living standards have drawn individuals towards such loans.

Though HFCs have also simplified the process of availing a home loan, individuals must take into consideration their repayment capacity before applying. Needless to say, but the best way to gauge one’s repayment capability is to calculate the loan EMI and tally the same with his/her current income.

As a means to do it accurately, intending borrowers can use a home loan EMI calculator. Regardless, to make the most of the financial tool one needs to become aware of its features and how to use it accurately.

Steps to use an EMI Calculator

Being a financial tool, a house loan calculator helps to compute the correct EMI amount spread over a convenient repayment tenor. To calculate the same accurately, users must be aware of these things –

• Loan amount.
• Loan tenor.
• Rate of interest.

By following these steps below, one can use an EMI calculator easily by following the steps mentioned below –

• Step 1 – Visit the official website of an HFC.
• Step 2 – Look for ‘house loan EMI calculator’.
• Step 3 – Enter loan value, suitable tenor and the applicable rate of interest.
• Step 4 – The precise amount will be displayed within seconds.

The fact that a home loan EMI calculator is free to use allows users to readjust their tenor and loan value until they arrive at a feasible monthly instalment. In turn, it helps users to opt for a repayment option that matches their capability and can be repaid without straining their available finances.

Benefits of an EMI Calculator

Here are a few benefits of using a housing loan EMI calculator.

• Ease of completing complex calculations.
• Time-saving and less cumbersome.
• Eliminates the risk of manual error.
• Helps to compare different home loan EMIs.

Other than these, calculating EMIs before taking a home loan comes in handy to decide a feasible loan amount, choose a suitable tenor and weigh prepayment options. It will help borrowers to manage their finances effectively and pay off their debt comfortably.

Similarly, individuals must also look into the requisite eligibility criteria for a home loan to avail the best financial assistance at the right time.
Home Loan Eligibility Criteria

Applicants who fulfil these would be deemed eligible to avail a home loan –

• Applicants should have a sound credit report.
• Must hold a minimum 750 CIBIL score.
• Should have a regular source of income.
• Salaried applicants should be between 23 and 62 years of age with a minimum of 3 years’ work experience.
• Self-employed applicants should be between 25 and 70 years of age with a business vintage of at least 5 years.

Notably, there can be other essential terms and conditions which must be fulfilled to meet the eligibility criteria set by a financial institution. Resultantly, one must check them out in due advance to streamline the process effectively.

Hence, one can easily use an online home loan EMI calculator by simply entering a few details. By doing so, intending borrowers will be able to select a suitable tenor and monthly instalment that can be managed and paid off easily.