You might be planning to avail a loan to fulfil your urgent financial needs. Of all loans available in India, mortgage loans are the simplest. You can put your idle asset on use and get funds to spend on any big-ticket expenditure.
If you plan to get the most of a mortgage or property loan, a mortgage loan EMI calculator should be your starting point. An EMI calculator makes it easy for you to calculate the monthly liability. It also helps you plan the right loan amount and find ways to get the best interest rates.
This article tells you the benefits of using a mortgage loan EMI calculator and the best way to use the calculator to get an accurate estimate of the EMI amount.
The Benefits of Using a Mortgage Loan EMI Calculator
- It is an easy and uncomplicated way to get an exact estimate of the property loan amount.
- It provides you with the estimates faster than the blink of an eye.
- It helps you to save the time you would have otherwise spent on calculating the EMIs manually.
- It enables you to select the right loan term and amount.
- It aids you in financial planning.
Now that you know the advantages of using a mortgage loan EMI calculator, here is how you need to check property loan EMI.
The Right Way to Use Mortgage Loan EMI Calculator
A mortgage loan EMI calculator shows you the net interest payable, the total principal and interest payable, and property loan EMI. To get this information, you have to enter the following details on the calculator.
- Loan Amount – It is the amount you wish to avail from the lender. Usually, Indian lenders approve an amount of up to 60% of the property’s current market value as a property loan. However, the higher your loan amount, the more EMI you will need to pay.
- Interest Rate – Property loan interest rates depend on factors like credit score, monthly income, debt-to-income ratio, and relationship with the lender. If your CIBIL score is beyond 800, you may expect the best rates. Hence, the higher the interest rate, the higher the EMIs.
- Tenure – Also known as loan term, it is the maximum year by which you should repay the principal and the interest. If you want your EMIs to be affordable, it is better to select a long loan term. A short-term loan, on the other hand, enables you to achieve debt-free status faster.
You may open a free mortgage loan EMI calculator offered by lenders like PNB Housing Finance and enter the aforementioned details to get an accurate estimate of the EMI.
What is Mortgage Loan Amortization Schedule?
When you enter details such as loan amount, tenure, and rate of interest in a mortgage loan EMI calculator, the calculator displays the property loan amortization schedule. The amortization schedule is a table which contains details of all EMIs you will pay over the loan term. It gives you a detailed estimate of the principal and the interest you will pay during the loan repayment period. The loan amortization table helps you to compute tax deductions a mortgage loan enables you to claim.
A mortgage loan EMI calculator makes a property loan uncomplicated. As you can know the EMIs in advance, you can get the maximum benefits from the loan.