Living in a country like India where there are so many people do not own their homes, the first priority for common people is to own their home. But not many of them won’t be able to buy it. If you are wondering why the answer for you is the prices of these homes that not many individuals can afford. A lot of them can not accumulate a large sum of money and buy their homes. To make them able to do so, there are several banks and housing finance companies that provide home loan to such customers at an affordable rate. Piramal Housing Finance is also one of the leading housing finance companies providing home loans to needy customers.
But there is a thing which a lot of people tend to ignore before taking the loan – EMI calculation. Even when they can do it with the help of this amazing tool named Piramal home loan EMI calculator, people don’t use to add some efficiency in their overall loan experience. In this article, we will be telling you about how can you use the EMI calculator and how the interest rate is the most important part of EMI calculation.
Why it is Important to use the Home Loan EMI Calculator?
You can have a look at the below-mentioned points to know about why it is important to calculate the EMI before opting for such a loan.
- The home loan amount is usually a big amount and you will have to repay the loan through Equated monthly installments (EMI). This EMI amount will be going from your monthly income.
- When you have a clear figure about the EMI, you can decide if this loan amount that you are taking would be okay for your needs.
- The Piramal Home Loan EMI calculator helps you in managing your finances in an organized way. Knowing the EMI beforehand, you can manage your spendings accordingly. As you know that this EMI amount will be going from your income, so it would be better to cut down the unnecessary expenses. With doing it, you’d be making sure that you don’t default while paying your loan.
- EMI calculation also helps in estimating what amount you will have to keep aside each month from your monthly income.
How the Rate of Interest affects the EMI amount?
You must have heard from many people that while taking a loan amount, it is important to keep an eye on the rate of interest. Have you wondered why they say this? Well, because it is the deciding factor behind your EMI amount. Your EMI amount would be higher if the rate of interest is high and vice versa. But you don’t need to worry about this factor while taking a Piramal home loan as Piramal housing finance home loan interest rate starts from 9.50% per annum.
How to use the EMI Calculator?
In order to use the Piramal home loan EMI calculator, you would need three basic details. These are the required loan amount, rate of interest, and required tenure. On feeding these three details into the calculator, you will get your EMI amount, interest outgo and the total amount payable. You can take up to 90% of the cost of the property as the loan amount for a period of 30 years. On having any dissatisfaction with the EMI amount, you could use it for as many times as you want with different values.