Buying a home is a dream come true for everyone. Though real estate prices are so high now that you will have to take out a home loan to pay for the purchase. It is crucial to note that the loan tenure for a home loan can go up to 30 years. Hence, you might have to pay the EMIs for up to 30 years. Hence, the interest cost could be very high, and it is not ideal to calculate it manually.
You must use a home loan calculator for this purpose. It is a free tool available online on various websites and mobile apps. To use this tool, you must enter basic details like loan amount, tenure, and interest rate. This interest calculator will then give you all the details on your home loans, such as the EMI amount and interest cost. There is no need to share your contact details to use a home loan calculator.
Read on to learn more about using an interest calculator in India and how it can help you.
How to Use a Home Loan Calculator
You need to follow a very simple process to use a home loan calculator. Before you use this tool, you must have the following information ready: loan amount, loan tenure, and interest rate.
Once you have these details ready, follow the steps given below to use the interest calculator:
- Visit any website you prefer that features this tool. You may also use a mobile app for this purpose.
- On the home page, click on the option for ‘Home Loans’. You need to click on the link for ‘Home Loan Calculator’.
- The tool will now be visible on your screen. Enter the details, like loan amount, loan tenure, and interest rate.
- You can enter these details manually or use the slider option.
- Verify the details and click on the calculate or submit button.
- You will now be able to see all key details on your screen. This includes the EMI amount, total interest paid, total principal paid, and total amount paid.
- Some apps also give the option to view a repayment schedule for the home loan based on the details entered.
- You must compare the details from various lenders to avail the best offer.
The exact options might vary across different apps, but the results will remain the same.
Benefits of a Home Loan Calculator
An interest calculator is a very good tool to plan your finances. A home loan is usually taken for a large amount and a long tenure, so you should ensure that there is no room for errors. This is why manual calculations are not ideal for this purpose. To ensure no calculations are done incorrectly, you must use this tool to plan your home loan EMIs.
Here are some of the main benefits of a home loan calculator:
- Simple and Accurate: It will allow you to make accurate calculations when taking a home loan. It is better to use this tool for the calculations as it will ensure that no final calculations are error-free. As you get the right results every time, you can compare many options to decide on the best home loan option. You do not need special skills to use this tool; only a phone or computer with internet access is needed.
- Plan Your Finances: Your home loan EMIs can go for up to 30 years, i.e., 360 EMIs paid during the peak of your career. Along with the home loan EMIs, you must also have other expenses. It is important to plan your finances strategically so that you can manage all your expenses efficiently. To avoid any mistakes, you must use a home loan calculator. This will help you know how much money you need to pay monthly for the EMI.
- Instant Results: If you use a manual method to plan your home loan, it will take hours, if not days. This increases the chances of errors or oversights. With the help of an interest calculator, you can finish this process in a matter of seconds. As you get instant results, you can make a decision easily. There is no need to recheck the calculations, as they will be accurate.
- Compare Offers: This tool can compare offers from many banks or NBFCs. This will give you a great chance to learn more about the cost of loans from various lenders. Many tools also offer you a repayment schedule. Hence, you can select the best option as per your needs without hassles.
- No Personal Details: The best part about using this tool is that there is no need to share your private information. Your privacy is safe, as you do not need to give any of your details. If any tool asks you for your details, then it is better not to use it and opt for any other tool.
- Loan Management: You might have spare funds and want to prepay the loan. But should you prepay the loan or keep paying the EMIs? This is where an interest calculator comes to your rescue. You can get insights into whether a pre-payment can help you or if you must make a pre-payment. With better loan management, you can better manage your finances.
Buying a home is an important decision in your life, and you would not like to make an error. Using a home loan calculator is ideal for removing any element of doubt. But to get the best home loan offer, you must opt for a reliable lender. This is where Piramal Finance comes into the picture.
You can visit their website to understand how to use the interest calculator. They have uploaded many informational blogs on various financial topics. Do not forget to check the different products and services they offer.