# How EMI Calculator Helps

With an increasing temptation to make our life more comfortable and affordable there are lot of things that we adapt and one of them is borrowing a loan. Loan is becoming a requirement for everyone who want to own their house and fall short of enough funds.Even the self sufficient people of our society borrow a loan to suffice the required amount and are also ready to bear the extra cost towards the loan.This loan is not only borrowed by them to buy a house but also to utilise their own saved funds in other money generating schemes. This is what they call a rotation of money.

When anyone of us applies for any kind of a loan and becomes a Borrower, we all have to agree to a pre-determined terms and conditions, interest rate at which loan has to be repaid as discussed and decided between the lender and the borrower mutually. The borrower agrees to pay the principal amount along with the interest amount over a fixed period of time as decided in the final loan document. This repayment is divided into equal monthly installments for a certain period of time and this EMI includes the principal amount as well as the interest.

Nowadays, with growing technology and the awareness about the knowledge centers on all the topics over internet, new as well as the current Home loan applicants get a facility to calculate their EMI’s before hand they opt for the new financial responsibilities with the help of EMI (equated monthly installment) calculators provided on all the major financial portals.

## How EMI Calculators help?

The EMI calculator plays an important role to find an ideal scheme for all the borrowers. This means that with this feature the borrower can easily find the right EMI as per the selected financial product.For example, an individual looking for a housing finance loan (home loan) would like to borrow at a reasonable rate for over a period of 15-20 years. To bring this effect, there are several features that are used be the EMI calculator to predict the best possible EMI scheme which can be beneficial along with other terms and conditions:

• The borrower can calculate and estimate how much interest will be paid in every month and over the tenor of entire home-loan tenure. This advance planning helps in arranging funds and finances before the schedule.
• Before moving ahead with the process, as a thumb rule, while calculating one’s monthly outgo in the form of home loan EMI itis restricted that it should not go beyond 40-50% of the total monthly income. However, keeping this in mind, it is easy for everyone to find out the right amount of loan one should apply for.
• It is also important to understand that the information that you are getting through EMI calculators is correct or not. As almost every financial services site is providing the same information. You can also visit the website of Mudra Home to know more about your credit score and use the EMI calculator.The EMI calculator on the website of Mudra home provides the best available interest rates among all the financial institutions and your EMI according to the selected loan tenure. With the help of EMI calculators one can easily assess how a minor difference of few basis points of different lenders can result in huge outflow of your funds over a certain period of 15-20 years. Hence, the EMI calculator helps to push you towards the lowest-possible interest rates and the right tenor of loan repayment.
• The EMI calculator is so convenient to use that it seems to be as easy as booking tickets for the movie while sitting in your room. After providing some information such as your few personal details, the tentative loan amount, the interest rate you are comfortable with and the loan tenor, the EMI calculator generates the right EMI that will fit in your budget and you will be accountable for.