IDBI home loan EMI can differ based on factors such as changing interest rates, different loan tenures, and loan amount sought. Before applying for a home loan, borrowers must calculate their monthly EMI commitment for the following reasons:
- How much to borrow – Borrowers who calculate home loan EMI before taking a home loan can know the exact amount they can afford to borrow. Thus, an investor can estimate the potential financial commitment and measure it against current and future expected income.
- How to repay – If an investor knows the home loan EMI in advance, it is easier to plan loan repayment depending on income levels. They can measure the monthly EMI commitment against other expenses before making the loan application.
- To know if pre-payment is possible – In case a borrower expects his current income to increase in the future, he can make a loan pre-payment as per the bank’s terms and conditions. This can be planned in a better manner if he knows the EMI amount that has to be paid monthly and in total for the remaining loan tenure.
How to Use IDBI Home Loan EMI Calculator?
For using the IDBI home loan EMI calculator, one needs to have three key inputs. These are loan amount, interest rate, and loan tenure. The first step is to enter these details in the respective slots of the calculator. One can also adjust the sliders to modify figures. After entering the three details, the EMI calculator will provide the EMI amount to be paid for the home loan.
Calculating EMI before making a home loan application allows applicants to plan their finances well in advance.