Saturday, 26 August 2017

Are you ready for a home loan? Here’s how to tell

Getting a home loan in today’s market is not a tough task, but taking a loan without proper planning can make the long and exhaustive journey more exhaustive and dragging. If you are planning to buy the dream home then prepare yourself beforehand. Consider some basic things like estimate the amount of money you require to purchase the home after paying the margin money, is the EMI compatible with your monthly budget and the loan term. The crucial part of any loan is the EMI cost. It’s better to prepare a healthy ground for the monthly EMIs, even before you apply for the loan amount. Disbursement of the loan amount doesn’t take much time, so think about the payments you have to make like the down payment, processing & administrative charges and the heart of a loan term- the EMI.

Here we will discuss about the EMI and importance of calculating EMI beforehand. EMI calculator is a user friendly online tool which can tell you whether you are home loan ready or not. As one size doesn’t fit all, similarly same home loan is not purposeful for all. Get ready with the figures like principal loan amount after down payment, floating/fixed interest rate whichever suits you and the loan tenure for number of installments. Once you are ready with the figures, just open the page of different financers and click at the HDFC EMI calculator and feed in the three figures and you are provided with the monthly EMI amount.

Change the principal loan amount to balance loan amount, then provide the interest rate and remaining installments and you get the updated EMI. If you sit and jot down the calculations physically, you will end up with messed up figures unless you are a math genius. Why stress yourself unnecessarily when you have such an easy tool just few clicks away. Utilize the calculator get the approximate values and plan your monthly expenditures and the savings accordingly in order to avoid the cash crunch in between the loan term. You will get an amortized table for your whole loan tenure helping you to plan properly.

You can easily choose the suitable interest rate after calculating the EMI with the calculator for different combinations. Cutting short you know before you pay your EMI and craft your budget accordingly. Now you will think that why is it necessary to know the EMI beforehand? Knowing you EMI beforehand has following benefits like:

·         As EMI is a matter of 30-40% of monthly expenditure, so beforehand knowledge will help you to keep unnecessary expenditure at a bay.

·         Different interest rate charges you different interest cost, so you can easily choose the type after knowing the varying interest costs.

·         Longer tenure means lower EMI but higher interest cost, shorter tenure higher EMI and lesser interest cost. Beforehand planning can cut your interest cost.


Before joining the bandwagon of home loan borrowers utilize the online home loan EMI calculator for your own benefit and save yourself from being a defaulter and lowering the credit score. Save accordingly and craft the repayment and prepayment options depending on your financial profile.

1 comment:

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