When managing a Home Loan, negligence or irresponsibility is unacceptable. An error while paying the EMI or a payment made after the due date will be classified as a default or a delay.
This can jeopardise your Loan repayment track record and credit score. A hit that no borrower wants to take. Practical financial planning and its diligent adherence can make a difference.
A Housing Loan calculator is a valuable tool which helps you plan and manage your Loan repayment. This blog explores how it assists with the financial projections.
The Housing Loan Calculator Explained:
The Housing Loan Calculator is an online tool that helps estimate your Loan EMI. You can access the tool on every leading banking and financial website/app in India at zero cost.
Using the Housing Loan calculator is very simple. Enter the principal amount, interest rate, and tenure. You can do this by using the keyboard or adjusting the sliders on the calculator interface.
Hit the “calculate” button to get instant and accurate results. It will display the estimated EMI amount. Additionally, it mentions the total Loan amount along with a detailed breakdown.
How Does the Housing Loan Calculator Assist in Accurate Financial Projections?
- No manual calculations:
Manual calculations require you to substitute values into a formula and perform math. This can lead to errors. This can be misleading for your Housing Loan financial planning.
However, the Housing Loan calculator is developed to ensure this is not the case. It entirely eliminates manual calculations, reducing the associated human error risk.
This way, you are on track with your Housing Loan financial planning in a hassle-free manner.
- Formula-specific calculations:
You may consider using a regular smartphone calculator to compute your Housing Loan repayments. This approach may seem viable at face value, but it can lead to inaccuracies in practicality.
This is because a regular calculator is designed with basic math formulas in mind. Hence, it may not be suitable for complex calculations, such as those of Home Loan obligations.
A Housing Loan calculator is specifically designed with its respective formula in mind. Therefore, it can deliver results by simply entering the variables in their respective parameter boxes.
- Real-time adjustment capability:
Suppose you are calculating your Loan repayment, and you want to change one of the key parameters: the principal amount, interest rate, or tenure.
If you have opted for the traditional manual calculation method, it would mean doing the calculations again from zero. This is both time-consuming and error-prone.
With the Housing Loan calculator, you have the flexibility to make real-time adjustments to the Loan parameters for calculations. And yet get correct results at the same speed.
- Inclusion of the Housing Loan amortisation table:
A Housing Loan is a long financial commitment. Hence, it’s not just about the next few months, but rather several years down the line. You need to consider this for comprehensive planning.
Since a massive number of calculations are involved, manual calculations can’t make these financial projects possible without hassles and errors.
The Housing Loan calculator can play a key role here. In addition to primary financial projections, the calculator provides a detailed amortisation table.
This amortisation helps you understand how much of the Loan you need to repay at every interval and the details that follow this payment subtraction.
Note: While the Housing Loan calculator is a useful financial tool. It should not be relied upon blindly. Use it calculator to gain a preliminary understanding of the loan obligations. However, always refer to the final Loan agreement for the details to plan your Housing Loan repayment. Contact the bank’s customer representative for doubts or queries.
Summing It Up
A Housing Loan is a feasible way to finance your home purchase. It is also a matter of immense responsibility. Hence, mistakes are something you cannot afford to make. The Housing Loan calculator is a simple yet effective financial tool that provides accurate financial projections in a matter of seconds. Use it to plan and manage your Housing Loan repayment.
