With home loans, you can fulfill your dream of buying a house, as these loans provide financial aid at affordable interest rates.
It seems reasonable to rely on an online home loan EMI calculator since the manual method involves complex steps leading to errors in the final results. However, to avoid these problems, you can use the ICICI home loan EMI calculator which provides you with accurate results each time you use it. Taking its help, you can formulate effective financial plans too. Read on to know how.
How Accurate Home Loan EMI Calculation Helps You with Financial Planning
Whether you are calculating a home loan EMI online or manually with the help of the standard formula, you must know about its significance in proper financial planning. Here we have provided the benefits for you:
- Assists in Making Pre-Payment Strategies
Naturally, when you know the precise EMI amount, you will be in a better position to close the loan deal before the completion of tenure. However, to accomplish this we suggest you confirm whether this will attract any foreclosure charge.
In case you do not need to bear any foreclosure fee, you may opt for surplus EMI payouts to gradually reduce the monthly liability. Being able to get rid of your loan sooner can also let you concentrate on other forms of investments.
- Helps You Select the Optimal Loan Tenure
If you wish to pay a lower EMI amount, then chances are high that you will stick to a much longer tenure, which is bound to attract more cumulative interest over time. Therefore, an accurate home loan EMI calculation is mandatory to manage the monthly budget better. Contrarily if you miss this step it can bring unnecessary financial stress and force you to think about generating additional revenue streams.
- Gives an Accurate Estimate of the Required Loan Amount
The utilisation of a home loan EMI calculator minimises the chances of defaulting on monthly repayment. As you visit the website to use the calculator, the tool suggests a threshold amount that you must not falter or otherwise you will attract additional strain on your finances. Many people consider this to be the main advantage of using a home loan calculator, as it helps you with the repayment plan.
- Allows You to Map Out the Home Loan Journey
Besides displaying the EMI value these calculators offer a breakdown of the loan amount. When you use this online tool you get to know what ratio of the monthly payouts are going towards the principal repayment. This in turn gives an idea regarding how partial pre-payments can bring down the interest rate gradually and reduce the tenure.
- Helps Compare Different Loan Offers
These tools are ideal for you to compare all offerings put forward by different lenders. Drawing these comparisons is through and through essential as borrowers may miss out on a more profitable deal. Eventually, using the EMI calculator will keep you in a superior position as you will take the final decision analysing your existing financial obligations.
- Produces Instant Results
Manual calculations not only involve a risk of committing mistakes but they demand expertise and a lot of time. Thus you can choose to use an automated tool instead to get 100% accurate results.
How a Home Loan Calculator Works
The home loan calculator gives an estimated EMI quotation as output when you enter a desired loan amount and tenure. Also, it can adjust the tenure and EMI amount based on your employment status, age, and credit score. The loan calculator operates following this basic formula:
EMI = [P x R x (1+R)^N] / [(1+R)^N - 1]
Here, P represents the principal sum; N stands for the tenure while R is the interest levied on the loan. Though this appears to be pretty easy, our recommendation is to use the ICICI home loan EMI calculator as it drastically reduces the chances of error calculation.
To find the approvable loan amount, net interest, and EMI, follow these steps:
Step 1: Go to ICICI bank's official website and look for the home loan EMI calculator.
Step 2: Either manually enter a loan amount or select from the pre-existing values using the slider.
Step 3: Here, you must enter the quoted interest offered to you based on home loan eligibility criteria. You can check your eligibility through a home loan eligibility calculator.
Step 4: Enter the desired loan term.
After entering all the metrics, you receive the results in seconds. Mapping out the loan repayment journey well ahead of time ensures you never need to stretch the budget or put any unwanted financial stress on yourself.
The ICICI home loan EMI calculator is your ideal companion if you have opted for a housing finance scheme and are looking for effective ways to plan your budget. With everything solved with automation, you can focus on more productive tasks instead of repeatedly calculating EMIs.