Gone are the days when you had to wait for hours to meet the loan officer for procuring a loan. With more and more financial institutes providing opportunities to loan seekers to fulfil their dreams, there are thousands of more people buying their dream car or home, and expanding their business. However, there is one thing that still needs to be worked out- the most suitable equated monthly instalments (EMIs) amount.
Imagine this- you have already arrived at the loan amount that you need to borrow for your new house. Now, you need to figure out the EMI amount that you will be able to pay without it stressing you out considerably. Thanks to technology and foresight on the part of the financial institutes, you can now use an EMI loan calculator that will help you calculate EMI amounts easily. Here are some other reasons, apart from the efficiency of the tool, to convince you to use it:
- Accurate calculations
If you were to calculate different permutations and combinations of EMIs using a pen and paper, chances are that you will make a mistake somewhere as you go along the tedious process. There will be too many numbers that may confuse you and make the whole process counterproductive. This brings us to the next advantage of using an EMI calculator.
- Comparison chart
Some EMI calculators provide a comparison table for all the variations of loan amount, loan tenure, and interest rate that you have arrived at. This allows the borrower to easily compare the different EMI variables at one glance and then settle on one that suits them the most. This table is helpful when you have to explain other stakeholders, such as your spouse or business partner, as to why one EMI amount is better than another.
- Easy to understand amount division
Apart from the EMI, the calculator will also give you a breakup of the entire amount that you will owe the financial institute. It will show you the principal amount, the interest, and even the processing fee that you will be paying as a part of the loan procurement.
- Access to amortisation tables
One of the aspects of loan repayment is understanding just how your loan will progress over the tenure of the loan, how much of the principal will you have paid by the end of next year, and how much still remains. The table will further help you get a clarification on how much of the initial EMIs will constitute of interest amount and principal repayment. When you have a graphical representation of such information, it makes it easier and more concrete for you to understand just how the loan affects you. In turn, this helps you plan your EMIs better.
So, go ahead, decide the loan amount you want and fiddle around with the loan calculator till you get the EMI amount that makes you feel comfortable.