If you're considering taking out a housing loan to purchase a property, it's important to understand how much you will need to repay each month. This is where an EMI (Equated Monthly Installment) calculator can be helpful.
Here is a step-by-step guide on how to use an EMI calculator:
Step 1: Find a reliable EMI calculator online
Many banks and financial institutions offer EMI calculators on their websites, or you can find one on a third-party financial website. These are free-to-use and online EMI calculators that help provide instant results.
Step 2: Enter the loan amount you wish to borrow
This is the total amount of money you need as a loan or you need to borrow from a financial institution to purchase a house.
Step 3: Enter the interest rate
This is the rate at which the bank or financial institution will charge you interest on the loan amount.
Step 4: Enter the loan tenure
This is the amount of time you have to repay the loan.
In monthly EMIs the amount is paid until the time the loan tenure ends. You can add the loan tenure in months or in years.
Step 5: Click on the "Calculate" button to see the EMI amount you will need to pay each month.
Once you click on the calculate button, the results are appeared showing the amount you need to pay as monthly EMI.
Step 6: Check the amortization table that shows the repayment schedule of the loan.
It provides a detailed breakdown of the EMI, the interest portion, and the principal portion that you will pay each month, as well as the outstanding balance of your loan.
Keep in mind that the EMI amount is just one factor to consider when taking out a housing loan. You should also factors such as home loan eligibility, documents required for a home loan, credit score, FOIR, etc.
Additionally, it's important to ensure that the EMI you are comfortable with fits within your monthly budget, so be sure to calculate it carefully before signing on the dotted line.
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