A home loan is a long-term commitment – around 20 to 30 years. You need to make sure that the EMI is affordable so that you can repay it on time for the entire tenure, irrespective of the various changes that happen in your life.
Here are three reasons why you should calculate your KVB home loan in advance before agreeing to the loan terms and conditions.
- It helps you decide the loan amount.
Calculating the EMI in advance helps you decide on the home loan amount that fits your budget. Karur Vysya Bank offers a handy EMI calculator that helps you determine the EMI amount by keying in the loan amount, interest and tenure. Vary these three factors until you arrive at an EMI that you can repay comfortably without straining your monthly finances.
- It helps you plan the loan repayment.
Using the EMI calculator and checking the EMIs in advance gives you a clearer picture of the loan repayment schedule. This way, you get a clear idea of how much you will be paying and for how long so that you plan your finances accordingly.
- It helps you plan for early repayment or part-repayments
Knowing the EMI in advance before taking the home loan allows you to plan your finances better. You will understand when to make part-payments to reduce the interest payments and close the home loan sooner than scheduled.
As you can see, you must budget and plan your finances properly before taking a home loan. Calculating the EMI in advance using a home loan EMI calculator helps you be better prepared to take on a massive commitment like a personal loan.
Additional Read: How to calculate the amortisation schedule of home loans?