 Gone are the days when buying a home is a challenging task as now with the advent of home loans, it becomes very easy for everyone to buy the home of their dreams. Home loan, also known as house loan, simply means the sum of money borrowed from the banking or non-banking financial institution to purchase a house. The borrower can pay back these loans in the easy EMIs within a specific period of time.
While borrowing a home loan, one thing that plays a major role is EMIs. With the introduction of the , it becomes easy to calculate EMIs before availing these loans as it allows you to plan ahead of borrowing a home loan.
Let’s get to know how this EMI calculator works.
This calculator features 3 basic elements for calculating an accurate estimate of home loan EMIs. These elements are:
• The total amount you are borrowing
• Rate of interest on the Home Loan
• Repayment tenor
Home Loan EMI Calculator makes the use of these above-mentioned three elements while calculating EMIs. The formula to calculate home loan EMIs are:
E = P X R X (1 + r) ^n/ ((1 + r)^n – 1)
Where P is the principal amount
R is the monthly rate of interest
n is the repayment tenor
And, E is the total EMIs you’ll have to pay.
EMI calculator eliminates the risk of miscalculation and thus provides you the exact value. So, before opting for the home loan, it is advised to use an EMI calculator and find out home loan EMIs in advance.