With the advent of planning to take a home loan, one needs to know how much he/she would be paying each month. It is here that the home loan interest rate calculator can help him out, by simplifying complex calculations and giving a clear picture of his loan.

A calculated budget could then be envisioned with the actual EMI (Equated Monthly Installment) payable. Here’s a step-by-step guide on how to use the home loan interest rate calculator properly.

Step 1: Input Your Loan Amount

Input the sum you want to borrow as a loan. This is the total amount you seek to withdraw from a bank or an institution dealing in housing finance. Ensure you input the correct sum to get accurate results.

That is to say, if you want to spend ₹50 lakhs in purchasing a home you input that figure in the calculator. It will automatically tell you the amount of your house loan EMI based on the rate of interest and tenure that you opt for.

Step 2: Loan Tenure

Next comes the loan tenure. This is the period through which you repay the loan. Generally, most home loans are given for tenure from 5 to 30 years. With a longer tenure, the EMI is lower; however, do note that with a longer tenure, you end up paying more interest in total over time.

For example, if you have decided to opt for a tenure of 20 years, the home loan interest rate calculator will calculate your repayment into 240 months which is (20 years × 12 months).

Step 3: Add the Interest Rate

Enter the interest rate provided by the lender. That is one of the most significant factors that determines your monthly EMI. It is also a fact that different banks or financial institutions provide different interest rates. So, check a few options before settling for one.

Suppose you receive 7% on interest; then you will apply that rate. The calculator will now apply this percentage when it is computing the EMI. So, be careful when you are applying any percentage of interest; otherwise, you might be shocked at later times.

Step 4: EMI Breakup

Once you fill in the loan amount, tenure, and interest rate, the emi calculator for plot loan will provide your EMI. It will show how much you need to pay every month as an EMI against your loan. The break-up will also show how much interest you will have to pay throughout the tenure.

This calculator gives an idea about how much has to be repaid every month. It enriches planning. It indicates the amount going towards repayment of the principal and the amount going towards repayment of interest.

Step 5: Change the Variables

The beauty of a home loan interest rate calculator is that you can vary the variables for different outcomes. So, you may change the amount of the loan, the tenure, or the interest rate you arrive at that ultimate combination of values to suit your financial pocket.

In case you want to lower the EMI, you can increase the tenure. That means, however, that you will pay a lot more in interest over the long haul. In case you want to repay the loan early, then you reduce the tenure. This will certainly raise your EMI but subsequently decrease your total interest paid. Keep adjusting the numbers until you find an EMI that comfortably fits into your pocket.

Conclusion

When talking about home loans, one name comes to the fore, and that is LIC Housing Finance. That is a name that should be trusted. The company has various types of home loan solutions for the benefit of different categories of borrowers.

When one talks about LIC Housing Finance, surely decades of experience in the housing finance industry can be talked about as well as reliability and transparency. However, every step they take in the loan process is smooth and hassle-free because they are customer-centric.

With LIC Housing Finance, you can get loans easily; it provides high interest rates and flexible repayment options. A new home, renovating an existing one, or a perfect solution awaits you at LIC Housing Finance.

With LIC Housing Finance, you are not merely availing a loan but also getting a partner committed to helping you make that dream of owning a house come true. They have made the lending process easy, reliable, and fast to ensure you get the best support and money to satisfy your financial needs.