Applying for a mortgage loan still seems like an ordeal for many individuals; however, banks and NBFCs are continuously trying to make the process simpler and more straightforward.
While the loan processing time for reliable banking and non-banking financial institutions are completed swiftly, documentation required is also minimalized, and the eligibility criteria to be fulfilled are also relaxed.
Financial institutions have also added benefits and tools like the Loan Against Property Calculator, making it easier for customers to calculate their EMI amount. Talking of benefits, trustworthy non-banking companies provide pre-approved offers with a mortgage loan, personal loan, and EMI finance on several products and financial services.
With these benefits and a calculator, availing a mortgage loan is easier and no longer an ordeal.
What is a Mortgage Loan EMI Calculator?
A mortgage loan EMI calculator helps an individual to calculate his/her EMI amounts based on the loan amount, rate of interest, and tenure.
The calculator helps those looking to avail a mortgage loan to plan out their repayment based on their preference easily.
Mortgage Loan EMI Calculator Formula
The mortgage loan EMI calculator calculates EMIs based on this formula: E = P x r x (1+r)^n/((1+r)^n – 1)
In the above equation:
* E is the EMI that the customer will pay including interest.
* P is the loan amount or the principal.
* r is the mortgage loan interest rate per month.
* n is the duration or the tenure of the loan.
How to Use the Calculator?
The calculator requires an individual to furnish the following numbers:
1. Principal
The loan amount that a customer wants to avail.
2. Rate of Interest
The rate of interest on a loan.
3. Tenure
The repayment tenure of a loan.
The mortgage loan calculator gives full freedom to customers for adjusting all of these numbers according to their priority.
Example:
Determining the EMI for a loan of Rs. 1 Lakh for 5 years against an annual rate of interest of 15%.
Solution -
The monthly rate of interest will be: 15/12 = 1.25%
E = 100,000 x 1.25/100 x (1+1.25/100) ^ 60 / (1+1.25/100) ^ 60 – 1
E = 2,380 (approx.)
Banks and NBFCs may also include additional charges and processing fees with the calculator for which the output amount may be high.
Uses of Mortgage Loan
By determining the EMI of a mortgage loan with a calculator, one can effectively utilise it in various ways like:
I. Business Expansion
Expanding to a new location, buying new plant and machinery, purchasing inventory, or any other business expansion requirements need funding for which home mortgage loans like loan against property can come in handy.
II. Debt Consolidation
Paying off debtors within due time is an utmost necessity for a business and ensures its viability. However, lack of funds may become an obstacle in this regard for which many business owners opt for a mortgage loan.
III. Wedding
For a big fat Indian wedding, one needs a big fat investment. Other than pouring all savings into it, availing a mortgage loan can prove beneficial owing to its lower interest rates.
IV. Medical Emergencies
A medical emergency can call for substantial funds, arranging for which in limited time can be unfeasible. For such situations, a mortgage loan can come to the rescue.
Additional Read: Mortgage Loans – 6 Types of Mortgage Loans Perfect For a New Loan Seeker!
Benefits of using a Mortgage Loan EMI Calculator?
1. Graphical Representation
In addition to their EMIs, users can also get a graphical representation showing the breakdown of their total payment. From the above example, of the total amount repaid, the interest includes 29.9%, and the principal loan amount is 70.1%.
2. Loan Specific Calculator
Whether it is a mortgage loan, personal loan, home loan, business loan or any other, such a calculator is available for all.
3. Instant and Accurate Results
Another excellent benefit of the mortgage loan calculator is its higher accuracy and faster results which cannot be achieved by manual calculation.
With a mortgage loan calculator, one gets the convenience to easily calculate their EMIs and evaluate their repayment effectively.
While the loan processing time for reliable banking and non-banking financial institutions are completed swiftly, documentation required is also minimalized, and the eligibility criteria to be fulfilled are also relaxed.
Financial institutions have also added benefits and tools like the Loan Against Property Calculator, making it easier for customers to calculate their EMI amount. Talking of benefits, trustworthy non-banking companies provide pre-approved offers with a mortgage loan, personal loan, and EMI finance on several products and financial services.
With these benefits and a calculator, availing a mortgage loan is easier and no longer an ordeal.
What is a Mortgage Loan EMI Calculator?
A mortgage loan EMI calculator helps an individual to calculate his/her EMI amounts based on the loan amount, rate of interest, and tenure.
The calculator helps those looking to avail a mortgage loan to plan out their repayment based on their preference easily.
Mortgage Loan EMI Calculator Formula
The mortgage loan EMI calculator calculates EMIs based on this formula: E = P x r x (1+r)^n/((1+r)^n – 1)
In the above equation:
* E is the EMI that the customer will pay including interest.
* P is the loan amount or the principal.
* r is the mortgage loan interest rate per month.
* n is the duration or the tenure of the loan.
How to Use the Calculator?
The calculator requires an individual to furnish the following numbers:
1. Principal
The loan amount that a customer wants to avail.
2. Rate of Interest
The rate of interest on a loan.
3. Tenure
The repayment tenure of a loan.
The mortgage loan calculator gives full freedom to customers for adjusting all of these numbers according to their priority.
Example:
Determining the EMI for a loan of Rs. 1 Lakh for 5 years against an annual rate of interest of 15%.
Solution -
The monthly rate of interest will be: 15/12 = 1.25%
E = 100,000 x 1.25/100 x (1+1.25/100) ^ 60 / (1+1.25/100) ^ 60 – 1
E = 2,380 (approx.)
Banks and NBFCs may also include additional charges and processing fees with the calculator for which the output amount may be high.
Uses of Mortgage Loan
By determining the EMI of a mortgage loan with a calculator, one can effectively utilise it in various ways like:
I. Business Expansion
Expanding to a new location, buying new plant and machinery, purchasing inventory, or any other business expansion requirements need funding for which home mortgage loans like loan against property can come in handy.
II. Debt Consolidation
Paying off debtors within due time is an utmost necessity for a business and ensures its viability. However, lack of funds may become an obstacle in this regard for which many business owners opt for a mortgage loan.
III. Wedding
For a big fat Indian wedding, one needs a big fat investment. Other than pouring all savings into it, availing a mortgage loan can prove beneficial owing to its lower interest rates.
IV. Medical Emergencies
A medical emergency can call for substantial funds, arranging for which in limited time can be unfeasible. For such situations, a mortgage loan can come to the rescue.
Additional Read: Mortgage Loans – 6 Types of Mortgage Loans Perfect For a New Loan Seeker!
Benefits of using a Mortgage Loan EMI Calculator?
1. Graphical Representation
In addition to their EMIs, users can also get a graphical representation showing the breakdown of their total payment. From the above example, of the total amount repaid, the interest includes 29.9%, and the principal loan amount is 70.1%.
2. Loan Specific Calculator
Whether it is a mortgage loan, personal loan, home loan, business loan or any other, such a calculator is available for all.
3. Instant and Accurate Results
Another excellent benefit of the mortgage loan calculator is its higher accuracy and faster results which cannot be achieved by manual calculation.
With a mortgage loan calculator, one gets the convenience to easily calculate their EMIs and evaluate their repayment effectively.
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