Buying a home is often the most significant investment people make. A home loan makes homeownership possible by allowing people to pay for their homes over time instead of upfront. Home loans can be more affordable than rent, especially when interest rates are low. Homeowners can get tax benefits by deducting the interest paid on the home loan from their taxable income.

Over time, property values generally increase, which can give homeowners a good investment return. Using a home loan EMI calculator can really help in understanding how to pay off the loan with limited interest payments over the years.

Home Loan Interest Rates Of Different Banks In India In 2023

• Central Bank of India – 8.55% – 9.60%
• IDBI Bank Limited – 8.55% – 12%
• Bank of Maharashtra – 8.35% – 10.55%
• Bank of India – 8.60% – 10.60%
• UCO Bank – 8.75% – 12.45%
• Indian Bank – 8.20% – 9.70%
• Punjab National Bank – 8.55% – 9.20%
• Union Bank of India – 8.60% – 10.45%
• Bank of Baroda – 8.60% – 10.30%
• Canara Bank – 8.90% – 11.15%
• ICICI Bank – 8.60% – 10.60%

Importance Of Planning Home Loan Emis To Pay Less Interest

Planning home loan EMIs (Equated Monthly Instalments) is essential to pay less interest for several reasons:

1. Lower interest burden: Home loans typically have an extended repayment tenure, ranging from 10-30 years. A slight difference in the interest rate or repayment tenure can significantly impact the total interest payable. By planning the EMIs carefully, borrowers can reduce the interest burden and save a significant amount of money in the long run.
2. Easy budgeting: Planning the EMIs helps borrowers in budgeting their finances effectively. They can ensure they have enough funds to cover their monthly loan repayments, reducing the risk of defaulting on the loan.
3. Shorter repayment tenure: By increasing the EMI amount, borrowers can shorten the repayment tenure and pay off the loan faster. This, in turn, reduces the total interest paid on the loan.
4. Early repayment: By planning the EMIs, borrowers can decide on an early repayment strategy. Prepaying the loan reduces the total interest paid, which can help borrowers save a significant amount of money.
5. Improved credit score: Paying the EMIs on time can help borrowers improve their credit scores. A good credit score makes it easier to secure loans and credit in the future at a lower interest rate.

5 Benefits Of Using A Home Loan EMI Calculator

There are several benefits of using a home loan EMI (Equated Monthly Instalment) calculator, including:

1. Accurate Loan Repayment Planning: A home loan EMI calculator helps borrowers plan their loan repayment accurately. By entering the loan amount, interest rate, and repayment tenure, borrowers can calculate the exact EMI amount they must pay each month.
2. Quick and Convenient: Calculating the EMI manually can be time-consuming and confusing. Using a home loan EMI calculator is quick and easy, and the result is accurate. Calculating EMI through a home loan EMI calculator is simple and saves time and effort.
3. Comparison of Different Loan Options: A home loan EMI calculator allows borrowers to compare different loan options offered by different banks. By changing the loan amount, interest rate, and repayment tenure, borrowers can compare different EMIs, which helps them to make an informed decision.
4. Avoiding Overborrowing: Borrowing more than what one can afford can be risky. A home loan EMI calculator can help borrowers avoid overborrowing by calculating the EMI and ensuring that the loan amount borrowed is within their repayment capacity.
5. Better Financial Planning: A home loan EMI calculator helps borrowers plan their finances better by estimating the total interest payable and the loan repayment period.

Conclusion 

Planning home loan EMIs is crucial to reduce the total interest paid on a loan and paying it off faster. It’s advisable to evaluate one’s financial situation, calculate the EMIs based on repayment capacity, and choose a suitable repayment strategy to save money and reduce the loan’s financial burden.

Using a home loan EMI calculator is an intelligent choice for borrowers as it helps in accurate loan repayment planning, is quick and convenient, allows for comparison of different loan options, helps avoid overborrowing, and enables better financial planning. Taking out a home loan is a significant financial commitment, and having the best expert guidance is the best long-term solution! If you are looking for home loan assistance, do check the home loan EMI calculator on NoBroker.in.

Additional reading:

• How to Increase your Home’s Appraisal Refinance Value
• 5 tips to be Financially Prepared for Buying a Home in 2018
• The Undeniable Homeownership Benefits of Moving to Sacramento