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December 1, 2023

Why Do Experts Recommend You to Estimate EMIs Before Availing a Housing Loan? This is Why!

Buying a house is a big decision and one that most people take with the help of financial support in the form of a home loan. This loan is a great option as borrowers can use the funds for their property purchase and then repay the loan over a repayment tenure of 20 years. However, before taking the loan, it is also important to get an estimate of the loan’s EMIs beforehand.

Why? Let’s find out!

  • Be ready with a sound financial plan

When a borrower applies for any type of loan, it is essential for them to first have a sound financial plan to repay the loan. Since a housing loan is most probably the biggest loan of your life, its EMIs are more likely to be higher than a small personal loan, which is why you need to be sure of affording the loan’s monthly instalments. Not having a steady financial plan can cause delays in your EMI payments, which would then affect your credit score. This is why it is so important for you to estimate the home loan’s monthly instalments beforehand.

  • Get accurate results from a home loan EMI calculator

Earlier, borrowers have had to manually calculate the monthly instalments of their home loans. Now, manual calculations would take time and could also lead to errors. This can lead to problems while paying the loan’s EMIs. Fortunately, today lenders make home loan EMI calculators accessible on their websites. This calculator is an online tool that you can use to learn about the loan’s EMIs before applying for it. Once the calculator gets the information it needs such as the loan amount, the loan’s interest rate, and the repayment tenure, it will display accurate EMI results within seconds.

  • Find a suitable repayment tenure

Choosing a repayment tenure to pay off the home loan is an important decision. This is because the tenure you choose will decide the loan’s monthly instalments, so picking one, which results in affordable EMIs, is vital. In addition, you need to keep in mind the interest that keeps accumulating with each monthly instalment. Using a home loan calculator can help in finding the most suitable repayment tenure to clear the loan. While filling up the details in the calculator’s required fields, you can keep making changes to the tenure to understand what your loan’s EMIs would be. Based on the results, you can pick a tenure in which the EMI payments are convenient.

  • Check if the interest rate of the loan is affordable

The interest rate of the home loan is an important factor to focus on. This is because it can have a significant impact on the loan’s EMIs. Using the EMI calculator, you can decide whether the home loan interest rate being offered is affordable or not.

Getting an estimate of a home loan’s EMIs is essential before applying for one, and a home loan EMI calculator lets you do it for free!

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