The home loan market has been on the rise following the drop in policy rates and consequent reduction of interest rates. A scenario like this has prompted intending property buyers to go ahead with their plan of investing in the real estate sector.
However, being a high-value credit instrument, financial planning is imperative for home loans. In this regard, leading financiers like Bajaj Finserv provide access to housing loan calculators that allow borrowers to learn about their loan offers and make a decision accordingly.
How to use a Bajaj Finserv housing loan EMI calculator?
Here is a step-by-step guide on the process of using this online calculator –
Step 1: To use a housing loan calculator, one needs to visit the website of Bajaj Finserv
Step 2: Provide the loan amount, tenor and interest rate in their respective fields
Step 3: Provided the details, one can see the total interest payable and total loan amount along with the EMIs
Step 4: According to the requirement, one can adjust the loan amount, interest rate and tenor to find a suitable loan offer
Benefits of Using an EMI Calculator for a Home Loan
- User-friendly tool
Using the Bajaj Finserv housing loan calculator is user-friendly and uncomplicated. In addition, this tool has a simple interface that everyone can access.
- No restriction on usage
One can use this home loan calculator innumerable times without paying any additional charges. Borrowers can use this tool anytime and from anywhere.
- Beneficial in understanding the exact loan amount
Understanding the exact home loan amount is necessary to avoid taking excessive financial liability. Individuals can take the assistance of this online device and see the total debt, and EMIs that they need to bear to get a loan offer of their choice. After that, they can make decisions accordingly.
- Helpful in planning prepayment
Online calculators like these come with a loan amortisation schedule, which offers an insight into EMI payments. Based on the information present on this list, one can plan loan prepayment to reduce his/her loan outstanding. However, one should keep in mind some factors while pre-paying.
Besides offering access to an online device like this, Bajaj Finserv also extends pre-approved offers. These offers streamline the loan application process and save time. Such offers are applicable on financial products like housing loans, LAPs and likes. Individuals can check their pre-approved offers by entering their essential contact information.
Being aware of the advantages of this financial tool is imperative. At the same time, intending borrowers should also know the ways they can reduce their housing loan EMI burden.
3 Tips to Reduce EMIs of Home Loans
- Opting for a longer tenor
Choosing a longer repayment tenor reduces the EMIs payable on housing credit. However, a longer tenor will increase the total outstanding. Hence, individuals can use such online calculators to find a suitable tenor as per their affordability.
- Higher down payment
Another way to enjoy a smaller EMI is by paying a higher down payment. Usually, lenders allow a certain percentage of a property’s market value as a loan amount. Whereas, the rest a borrower has to pay as a down payment. Thus if a debtor opts for a high down payment, it will reduce the principal amount, which will eventually reduce the monthly instalments.
- Switching to another lender
Borrowers may switch to another lender if they get additional benefits and a lower interest rate. It will also aid them in availing lower EMIs. However, before opting for this facility, they should know everything about home loan balance transfer to avoid making any wrong decisions.
Using a Bajaj Finserv housing loan calculator may help individuals to take a calculated decision. Simultaneously it also allows intending borrowers to learn about their loan offer in detail.