how to get the right EMI amount for your home loan?

taking a home loan is a long-term financial commitment that can span up to 30 years, hence you should make careful financial planning to come out of the home loan debt comfortably. when it comes to a home loan, equated monthly instalment (EMI), a payment that you make on a monthly basis to pay off a home loan, plays an important role. 

your home loan EMI amount depends on a lot of factors including - principal amount, interest rate, and tenure of the loan. the manual calculation of home loan EMI can be very lengthy and time-consuming. hence, we recommend using a home loan EMI calculator to know how much your home loan will cost you. CRED home loan EMI calculator is an easy-to-use tool where you have to enter details of your home loan, such as - principal amount, interest rate, and loan tenure - to get the details of your EMIs, total interest, and overall payment. using the CRED home loan EMI calculator will help you compare the loan offers from various lenders and help you get a home loan with the lowest interest rate. start your home loan planning with the help of the CRED home loan calculator:

use the CRED home loan calculator

what is a home loan? 

a home loan is a loan that you take from a financial lender to buy a home or renovate your owned house. here, the lender takes the property you purchase as collateral to ensure you repay the loan amount and interest at the agreed time. with this, the lender also gets the right to resell the property or home if you are not able to complete the home loan repayment. the collateral deposit helps the lender to recover the loan amount disbursed to you in case of loan defaults. 

the home loan repayments are made via home loan EMI which is a monthly payment by the borrower to the lender. the first part of your home loan EMI goes towards the payment of interest component and the rest goes towards the principal payoff. your home loan EMI amount depends on a lot of factors such as - loan amount to be borrowed, the home loan interest rate, and the duration of the loan. 

you can take a home loan to purchase or build a house on a property. you can also use a home loan to renovate or expand your house. most of the banks offer home loans at 80% of the property value, for example, if the cost of the house you want to buy is ₹50 lakhs, then the lender would give you loan approval for only 80% of ₹50 lakh i.e. ₹40 lakh, and the rest 20% i.e. ₹20 lakh plus the registry amount you have to arrange on your own. however, some housing finance companies can give you loan approval of more than 80%. the rate of interest and amount of loan sanctioned also depends upon other factors such as - reputation of the builder, your employment type, credit score report of the applicant etc.

the banks and housing finance companies offer two types of home loans - fixed interest rate home loans, and floating interest rate home loans. the principal amount, interest rate, and the tenure of the loan are the three main factors that guide your monthly payments on the loan. you can use the CRED home loan EMI calculator to estimate the overall cost of your home loan. 

how to use the CRED home loan EMI calculator? 

the CRED home loan EMI calculator is a free online tool that is utilized to calculate the EMIs payable to clear your home loan debt. the CRED home loan EMI calculator is easy-to-use and gives error-free results instantly. all you have to do is input a few loan details such as - loan amount, rate of interest, and loan tenure, and it does the rest for you.

having a resource like CRED home loan EMI is quite helpful because it ensures that you do not take a loan that you can't repay completely on time. you can also compare the home loan offers by various lenders and get a deal that suits you the most. 

how the CRED home loan EMI calculator help you?

you should always calculate the home loan EMI amount to be paid monthly before you even apply for it. the CRED home loan EMI calculator can help you to find out

• principal amount: how much money you can get as a home loan.
• loan tenure: whether you should go for a short-term or long-term home loan to fit the home loan EMI in your monthly budget. 
• down payment: how much money you should keep aside as a down payment for the property you want to buy. 
• budget planning: how to manage your finances efficiently to make sure you pay off the home loan on time.