The moment you decide to avail a home loan, which is that one factor that can either make or break the deal for you. Well, it would not be wrong to say that your equated monthly installments or commonly known as EMIs play a significant role in your overall loan journey.
Thus, it is important for a borrower to know about the same so that it helps in enjoying a calculative loan journey. And, there is no other way to know more precisely about your EMIs is by using a home loan EMI calculator. Yes, this magical tool allows you to know the exact and accurate calculations of your monthly installments in the least time frame. So, without wasting any time further, let’s just get into the detail and talk more about this device in the article below:
How Does an EMI Calculator Work?
The moment you feed Loan Amount, Tenure and Interest Rate into the device, it will give you the relevant results related to your EMI, Interest Outgo and Total Amount Payable. Let’s just take a look at the parameters on which your EMIs is calculated:
Loan Amount: A borrower needs to enter a complete loan amount in home loan calculator SBI which is being offered by the lender.
Interest Rate:Talking about the interest rates, they are divided into two categories: fixed and floating rates. In case of fixed, the rates will remain constant, wherein in the case of floating, the rates will keep on changing.
Tenure: It is the time taken by a borrower to repay the loan. In general, a home loan online tenure varies from 20 years to 30 years.
EMI Calculation Formula
Take a look at the calculation formula below:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
where,
EMI= Equated Monthly Installment
P= Principal Loan Amount
R= Monthly Interest Rate
N= Number of Monthly Installments
Understanding of The Device
Let’s just have a better understanding of the same with the help of an example below:
Suppose, Naman Dixit, a 30-year-old, Software Developer by profession is looking for an HL of Rs.30 Lakh. One lender got agreed to offer him the loan at the home loan interest rates of 8.75% per annum for a tenure of 30 years. But before going for this credit facility, he wants to be sure about his EMIs, i.e. whether his monthly installments are going to be pocket-friendly or not. Thus, he used an online EMI calculator so as to clear his confusion.
So, with the help of using home loan EMI calculator HDFC, it would be easy for Naman to know the exact value of his monthly installments. So, the values come out to be:₹ 23,601
This device with its smartly designed algorithms give you the accurate values in the least time frame so that you can have a hassle-free loan journey. Through this way, you can know the calculations in advance, which further allows you to take a calculative decision in the future.
Hope this article was worth reading for you!
Thus, it is important for a borrower to know about the same so that it helps in enjoying a calculative loan journey. And, there is no other way to know more precisely about your EMIs is by using a home loan EMI calculator. Yes, this magical tool allows you to know the exact and accurate calculations of your monthly installments in the least time frame. So, without wasting any time further, let’s just get into the detail and talk more about this device in the article below:
How Does an EMI Calculator Work?
The moment you feed Loan Amount, Tenure and Interest Rate into the device, it will give you the relevant results related to your EMI, Interest Outgo and Total Amount Payable. Let’s just take a look at the parameters on which your EMIs is calculated:
Loan Amount: A borrower needs to enter a complete loan amount in home loan calculator SBI which is being offered by the lender.
Interest Rate:Talking about the interest rates, they are divided into two categories: fixed and floating rates. In case of fixed, the rates will remain constant, wherein in the case of floating, the rates will keep on changing.
Tenure: It is the time taken by a borrower to repay the loan. In general, a home loan online tenure varies from 20 years to 30 years.
EMI Calculation Formula
Take a look at the calculation formula below:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
where,
EMI= Equated Monthly Installment
P= Principal Loan Amount
R= Monthly Interest Rate
N= Number of Monthly Installments
Understanding of The Device
Let’s just have a better understanding of the same with the help of an example below:
Suppose, Naman Dixit, a 30-year-old, Software Developer by profession is looking for an HL of Rs.30 Lakh. One lender got agreed to offer him the loan at the home loan interest rates of 8.75% per annum for a tenure of 30 years. But before going for this credit facility, he wants to be sure about his EMIs, i.e. whether his monthly installments are going to be pocket-friendly or not. Thus, he used an online EMI calculator so as to clear his confusion.
So, with the help of using home loan EMI calculator HDFC, it would be easy for Naman to know the exact value of his monthly installments. So, the values come out to be:₹ 23,601
This device with its smartly designed algorithms give you the accurate values in the least time frame so that you can have a hassle-free loan journey. Through this way, you can know the calculations in advance, which further allows you to take a calculative decision in the future.
Hope this article was worth reading for you!
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