20 APRIL, 2022

With technological developments, life has become simpler now. Everything is at your fingertips, and there is nothing you cannot do sitting in your home. Availing a home loan is no different. You can apply online and get the loan amount in a few hours. However, the ease and convenience of applying for a loan should not make repaying the loan difficult. If you do not think through your loan before availing, it could be difficult to manage it. You must know the amount to be set aside for its payment and the financial changes it would bring. One of the best tools to prepare for your loan beforehand is through an EMI calculator. With an EMI calculator, you can know your monthly obligation and manage your loan better. Read on to know more about a home loan calculator.


Ways to manage your EMI


  • Use an EMI calculator before applying for a home loan


An EMI calculator is a computation tool that is available online for free. Through this calculator, you can determine your EMI, interest component and total cost of borrowings. This can be an effective tool for managing your home loan EMIs as it helps plan your finances and prepare your budget. When you know how much you need to spend every month on the loan, you are less likely to default. To use an EMI calculator, you need your loan amount, tenure and interest rates. Once you input the details, you get the results instantly. You can also modify the figures to get the desired results.


  • Plan your loan

While a home loan calculator can help you determine your monthly obligation, you must plan your loan to ensure you can repay it comfortably. You must list your expenses and income to ensure that you have enough funds to repay it. Moreover, you must have a contingency fund to arrange funds for EMI for emergencies.


  • Opt for refinancing

If you are paying a higher EMI due to high-interest rates, opt for a home loan refinance. Transfer your home loan to a lender offering a lower interest rate. You can also restructure your loan and choose a tenure that reduces your EMI and helps you manage them.


Why do you need to manage your EMI?

Non-management of your EMI means delays in payments or worse, defaults. Non-payment of EMIs can have grave consequences on your financial profile. Typically, lenders charge a late fee when you do not pay EMIs on time. However, it can also adversely affect your credit score, putting a negative remark on your credit report. Consequently, you could have difficulties taking other loans in future.


It is crucial to manage your EMI effectively, to avoid defaults on your home loan repayments. A home loan EMI calculator is a useful tool to help you plan your loan better. It is best to prioritise expenses and have funds for EMIs for a few months as a reserve.

Latest Comments

Leave a Comment

200 Characters

Read Next


Bank vs. HFC: What Should You Choose for Your Home Loan?


Bhulekh Odisha 2023: A guide about checking Land records, verfication of naksha, ROR Online


Stamp Duty & Property Registration Charges in Chennai, Tamil Nadu

Load More

Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.