EMI Calculator: An efficient way to calculate your monthly instalment

Home loan is one of the biggest liabilities in an individual's life and a slight misjudgment can burn a big hole in your pockets. While availing a home loan people are often worried about its impact on their finances, the EMI, charges incurred, interest rates levied, etc. In prior days, people used to visit an expert and sit manually to do the calculation. Not only was the job tedious but it was not guaranteed that the EMI would be constant through the tenure.

This would lead to errors in calculation. Thanks to the technology, today leading players have introduced website and EMI Calculator pages wherein you can calculate the monthly installment with just a few clicks on your laptops or smartphones. An EMI Calculator is a great tool that gives an exact idea of your monthly and yearly installments that you have to pay for your home loan. It allows you to assess the mortgage payment options. There are a lot of websites from various leading banks, non-banking finance companies; aggregator sites that offer easy EMI Calculator to understand how your loan does actually work.

When a consumer visits this page he or she can just key few details like principal amount required, interest rate preferred tenure and other expenses. The EMI Calculator would then provide the monthly installment amount that you would be paying through the loan tenure.

If you wish to know the maximum housing loan amount based on your annual income and ability to repay it, you will have to choose from home loan calculators determine the affordability basically termed as "affordability calculators. For this you need to input the monthly salary, interest rate preferred whether fixed or floating basis, desired loan tenure and maximum money that you can afford to spend for repayment (including spouse). Once you put this information in these calculators they will tell you the maximum loan that you can be qualified for and the monthly installment that you would have to pay.  The interest might vary across lenders as different lenders have different rates.

You can make the changes in the principal amount and interest rates as well within the given bracket to make the loan EMI more affordable for your pockets. If you're an investor, you can look at EMI Calculator housing loan that gives you the potential earning on investments.

These calculators are quite customer friendly and easy to use. You don’t have to pay money to use them or subscribe them. All you need is a smartphone or a laptop, a computer, and a good internet connection. Different leading firms have different types of EMI Calculator to come up with a suitable consensus for you. You can do these calculators any time of the day or night and right from the cozy corners of your rental homes or offices.

Once you calculate your preferred interest rates, EMI to be paid, processing fee and other charges, you can visit the banks or finance companies online, fill up the application form with no errors, attached the scanned copy of documents and hit the  SUBMIT button. Within a couple of minutes or in a day or two you would be able to know your loan status.

Calculate your EMIs with ease using EMI Calculator and opt for a home loan online, now!

Insurance on home loans: 4 things you need to know.

Home Loans are a significant form of debt to handle. They involve large amounts of money and require you to devote sizeable parts of your monthly income towards repayments for as many as thirty years; that’s 812 months. However, the fact that your lender has provided you the loan indicates that you currently able to repay the amount; a process that will only get easier as you benefit from appraisals, bonuses & other windfall gains during the course of your working life.

In other words, as long as you’re around, everything will be just fine. You’ll pay the EMIs, and eventually repay the entire debt too. However, life is very uncertain and if something unfortunate was to happen to you, the responsibility of repaying the home loan falls on the shoulders of your family members; family members who might not be financially capable of handling this debt.

This is where an insurance policy can come in and provide you peace of mind, even from such uncertainties. They ensure your loved ones do not have to pay the EMIs or see the house go up for auction. However, before you go out into the market and look for an insurance policy, keep these 4 things in mind.

1. The insurance that comes with home loans.
Most lenders will offer an insurance policy with their home loans. Whether you opt for this insurance depends on a number of things. Some lenders have tie-ups with an insurance company and provide one of their plans as the default and only option. Some have the same setup but they allow you to choose a policy besides the one they are offering, so you are free to go with the one you like. It is better you opt for a lender that doesn’t force anything on you, including the insurance policy.

2. Look out for single premium payments.
These policies function normally; the only thing is that you pay one single premium upfront instead if small amounts over time. This adds to the other up-front costs such as the down payment, the processing fee, stamp duty, etc.

3. Payment methods
There are many ways the payments can be made. Firstly, you might be able to pay for insurance yourself, either upfront in a single premium form or in monthly, quarterly, half yearly or yearly premiums. On the other hand, some lenders insist on making the payment in your behalf and add the total cost to the loan value. This will lead to higher EMI amounts. If you pay the premium yourself, you can claim the amount as deductions up to Rs. 1, 50,000 under section 80C of the Income Tax Act.

4. Coverage.
The cover offered by some policies gradually comes down as the outstanding amount decreases. For example, a plan with a 25 lakh cover could reduce to as much 13.5 lakh after the tenure of the loan. The drawback with this is that if you were to extend your tenure the outstanding amount would increase. In which case, your family members would have to arrange the difference.

Keep these 4 things in mind when looking for insurance on home loans.

Good luck and all the best!