Home loans are very popular in India today. Most individuals rely on getting a housing loan to purchase their own property or plot of land. Whenever you decide to plan for property investment, a housing loan is one of the best ways to get an instant source of funds. It is available from banks and non-banking financial institutions and is applicable to self-employed and salaried individuals.
Therefore, it is important that you fulfill the eligibility criteria in order to get the best housing loan available on the market. If you want to manage your housing loan in the best way possible, you need to calculate the right monthly installment amount with the low home loan interest rate. Let us understand the housing loan calculation formula for the monthly installment amount.
How to calculate home loan EMIs?
Calculating a Home Loan EMI Formula is P x R x (1+R) N/[(1+R) N-1]
Where,
P denotes the principal amount of the home loan.
N denotes loan tenure in months.
R denotes the monthly interest rate.
EMI = 40,00,000 * 0.005 * (1 + 0.005)240/(1 + 0.005)240 – 1) = 28,657
Components of a mortgage payment
The housing loan EMI amount includes various components and elements that help you get the monthly installment amount. The three most important components are the rate of interest, principal loan amount, and loan tenure. These three elements actually impact the housing loan installment amount that you need to pay every month by the fixed due date. It is very important for you to choose the three components in a balanced way so that you get the best monthly installment amount every month without turning into a financial burden. Make sure you are able to calculate the right installment amount with the help of a calculator.
What is an EMI calculator?
It is a special calculator that is only used for calculating housing loan monthly installment amounts. It cannot be used to perform any simple or common calculation. you input the rate of interest loan tenor in months and the principal loan amount, you will get the EMI amount every month that you need to pay. Consider your finances and then only choose the right monthly installment amount so that it is easy on your monthly finances. The calculator provides you with instant and accurate calculations that are free of errors or mistakes.
Finishing up
Get the best home loan, use the EMI calculator online to compare the home loan interest rates while meeting the home loan eligibility criteria. Negotiate the terms and conditions and get the most affordable housing loan interest rate.
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