Given the high price of real estate in India, purchasing a house can be a challenging task without an external source of finance. An increasing number of prospective home buyers are opting for this type of credit to fund their house purchase. It is no surprise that housing credit grew by over 16% in FY18.
The primary responsibility of a potential borrower is to have an exact estimate of the EMI amount they are liable to pay. One can take advantage of a home loan EMI calculator to arrive at the precise number.
Equated Monthly Instalment or EMI is a fixed amount that a borrower must pay back to the lender every month till their tenure ends.
Calculating the EMI and its components can be a cumbersome exercise for first-time financers. A home loan EMI calculator India can do these complex calculations in no time, and save you from the trouble of doing it manually.
All online calculators use a specific home loan EMI calculator formula to arrive at the exact EMI amount, which is –
E = [P x R x (1+R) ^N] / [(1+R) ^N-1]
|R||Rate of interest|
A home loan EMI calculator online can help you find the exact amount without fail.
For example, assume that a person avails a home loan worth Rs. 1 Crore for a tenure of 15 years at an agreed-upon interest rate of 12%. So, according to the formula –
E = [1, 00, 00,000 x 12 x (1+12) ^ 15] / [)1+12) ^ 20-1]
A home loan EMI calculator India will instantly help you compute the exact result, which in this case should be Rs. 1, 10,108.
Now, each loan EMI has two components – a principal component and an interest component. At the beginning of the tenure, the interest component is high, and the principal part is relatively low. The equation changes with every passing month, as the total interest to be paid reduces faster. So, with every EMI paid, the interest component decreases while the principal component increases.
Groww is one of the leading financial resources providers. The housing loan EMI calculator India available here is very easy to use.
All you have to do is enter the loan amount, interest rate and the loan tenure in years.
The exact EMI value will be calculated and displayed within seconds.
There are numerous advantages of using the calculator available at this website.
As a debt category, the home loans corpus is expected to grow faster in the coming years. An online bank EMI calculator for a home loan is the go-to tool for all prospective debtors.
“Looking to invest? Open an account with Groww and start investing in direct Mutual Funds for free”
What is EMI?
EMI stands for Equated Monthly Instalment. In simple terms, it is the amount a borrower needs to pay the lender every month till his/her tenure ends.
How is EMI calculated?
EMI is calculated after taking the entire range of variables vis-à-vis principal amount, interest rate and tenure into account and computed using a formula.
Why use the online EMI calculator?
The online EMI calculator provides you with an accurate estimate and helps you save time.
How many times can you use the calculator?
There is no upper limit on the number of times one can use the calculator.
Is the EMI amount fixed?
Yes if you avail the home loan on a fixed rate of interest. If you have availed a home loan on floating rate of interest, your EMIs will vary over the tenor. In either case, you can reduce the EMIs if you make a part-prepayment.
|Asset Management Company|
|Axis Mutual Fund||DHFL Pramerica Mutual Fund||Principal Mutual Fund|
|Kotak Mutual Fund||Sundaram Mutual Fund||BOI Axa Mutual Fund|
|Reliance Mutual Fund||Invesco Mutual Fund||Union Mutual Fund|
|HDFC Mutual Fund||LIC Mutual Fund||Taurus Mutual Fund|
|SBI Mutual Fund||JM Financial Mutual Fund||Edelweiss Mutual Fund|
|ICICI Prudential Mutual Fund||Baroda Pioneer Mutual Fund||Essel Mutual Fund|
|Aditya Birla Sunlife Mutual Fund||Canara Robeco Mutual Fund||Mahindra Mutual Fund|
|UTI Mutual Fund||HSBC Mutual Fund||Qauntum Mutual Fund|
|Franklin Templeton Mutual Fund||IDBI Mutual Fund||PPFAS Mutual Fund|
|IDFC Mutual Fund||Indiabulls Mutual Fund||IIFL Mutual Fund|
|DSP Blackrock Mutual Fund||Motilal Oswal Mutual Fund||Escorts Mutual Fund|
|TATA Mutual Fund||BNP Paribas Mutual Fund|
|L and T Mutual Fund||Mirae Asset Mutual Fund|