Research has revealed that India’s home loan market is likely to grow at a CAGR of 22% between 2021 and 2026. However, before applying, one must have dedicated repayment planning to help manage the finances efficiently. In this regard, intending borrowers can use a home loan calculator, which allows individuals to estimate their monthly instalments beforehand.
Almost all financial institutions offer access to an online tool like this, and Bajaj Housing Finance Limited is no different.
How does a Bajaj Housing Finance Home Loan calculator work?
A home loan calculator offers quick and error-free calculations, which plays a part in better financial management. Following is the formula on which these calculators functions:
- Loan EMI: [P x R x (1+R) ^N]/[(1+R) ^N-1]
Where, P= Principal; R= rate of interest; N= tenor
You can follow the below-mentioned below steps while using this online calculator:
1: Visit the official site of the lender and open the Home Loan EMI calculator.
2: Enter the home loan amount, tenor, and interest rate proposed to you.
Within seconds, one will view the EMI payable, interest amount, and the total amount (principal + interest) payable of a home loan. Moreover, some calculators show the amount that goes through the interest and principal using a pie chart.
Based on the outcome, borrowers can decide about their choice of lender and the loan quantum. However, before proceeding with the same, they must know about the eligibility criteria set by the financial institution. Furthermore, lending institutions like Bajaj Housing Finance Limited prefer that applicants maintain a CIBIL score of 750 or above and have a stable source of income.
They also extend pre-approved offers for eligible customers. This facility allows such individuals to skip the hassle of documentation and verification and avail a loan faster. These offers are applicable on a host of financial products such as home loans, loans against property etc. Borrowers can check their pre-approved offers by submitting their contact details.
Benefits of Bajaj home loan calculator
There are multiple benefits of using a home loan calculator by Bajaj Housing Finance Limited. Individuals must know of these before opting for a home loan:
Ease of use
This calculator is very easy to use and is a free online tool. All one must do is enter the home loan amount, tenor and rate of interest.
Must Read: 8 important tips to consider before taking a home loan
EMI calculation uses a complex formula, which can lead to unwanted errors when calculated manually. However, with these online tools, users get precise results as per their inputs, which helps in their decision making.
Easy to adjust
Individuals can make multiple adjustments to the loan value and tenor to arrive at a suitable combination. This feature is incorporated to help users opt for a loan value that matches their repayment capacity.
Access to a loan amortisation schedule
Another salient advantage of using these online devices is that, they extend access to a loan amortisation schedule. This table includes a detailed break up of EMIs from the start to the end to of tenor. It offers the much necessary insight into loan repayment.
Effective financial management
The primary benefit of a home loan calculator is effective financial management. Users not only develop an understanding of the financial commitment associated with the home loan but also help assess their financial position. This offers them an insight into how to manage their finances effectively.
How to apply for a home loan?
Now that individuals know the usage of the online calculator, they can apply for home loan following the below-mentioned procedures:
1: Visit the official website of your preferred lender.
2: Navigate to the ‘apply for home loan’ section.
3: Provide essential details such as name, employment age, city of residence etc.
4: Submit it online. After a while, one will get a call from the lender verifying the information provided and assessing it on legal grounds. Then, the loan amount will be disbursed.
Moreover, applicants can avail of home loan tax benefits once it is sanctioned.
Furthermore, applicants can choose Bajaj Finance Housing Limited to service their home loans. With them, one can access a free home loan calculator to make a knowledgeable decision.