Be it a car, home or gold loan, EMIs are an integral and a must part of it. Whenever a potential borrower plans to avail any of this loan, they agree to repay the loan amount in monthly instalments, including both principal and the interest rate.
When it comes to a home loan, which is availed after the housing loan eligibility is approved, many people in India are inclined towards this facility due to our country’s rising real estate prices.
What is an EMI?
Equated Monthly Installment (EMI) is a fixed monthly amount that a borrower pays to a lender as repayment towards a financial loan. The EMI consists of two components – the principal amount borrowed and the interest rate charged. It is totally calculated on the basis of the loan amount, rate of interest, and the tenure of the loan.
EMIs are majorly used for repayment of home loans, car loans and other types of loans. They allow the borrower to spread out their repayment over a longer period, making it much smoother and easy to manage their finances. Further, they also ensure that the borrower repays the loan amount and interest in a structured and timely manner.
(Note: Initiate a emi calculator app download before availing a loan.)
What is an EMI calculator?
As the name implies, it is an online tool that helps borrowers calculate their loan EMI. It allows borrowers to enter the amount of loan, rate of interest as well as the tenure of the loan. Further, it then calculates the monthly instalment that needs to be paid.
It also provides a breakdown of the total amount payable, including the principal amount borrowed and the interest charged. This helps the borrower understand how much interest they will be paying over the course of the loan.
Nowadays, using this tool is super easy, and several applications offer the same. However, I’ve used the one provided by ICICI, but its functioning is not that fast. But the one offered by Bajaj Finserv is relatively smooth and has a lot to offer.
What are The Benefits of Using an EMI Calculator for Home Loans?
Calculating EMI manually can be a time-consuming process, especially when there are several multiple factors involved. Initiating the EMI calculator download automates the calculation process, saving a lot of your time and effort.
An EMI calculator offers accurate calculations of the monthly EMI payable. This helps the potential borrower plan their finances better and make informed decisions about the amount, tenure, and interest rate.
The best emi calculator app for home loans is user-friendly and relatively easy to use. Borrowers planning to avail a home loan must enter the loan amount, tenure, and interest rate. The tool then provides the EMI and other details instantly.
It can also be used to compare loan offers from different lenders. By entering all the required details, borrowers can easily compare the EMIs offered by different lenders and choose the one that suits their needs best.
How to use an EMI calculator app?
Here, I’d like to share my personal experience so readers can easily understand. Around a month back, when I was planning to avail a loan, one of my colleagues told me about Bajaj Finserv, the perfect app. Believe me, it is one of the best applications to use if you are looking for such a tool.
- Download the Bajaj Finserv app on your smartphone
- Sign up by entering your mobile number
- Tap on the three bars at the top left on the home page
- Here, you’ll see ‘Calculators & Buying Guides.’
- Further, Tap on ‘EMI Calculators for Loans’
- Experiment as per your requirement