An EMI calculator is an excellent way to accurately know the amount you will pay every month to your lender until the loan amount is repaid fully. Grihashakti being a popular loan provider in India has its EMI calculator to allow borrowers to calculate their EMIs quickly. In this post, we’ll have a look at some tips and tricks for using Grihashakti EMI calculator.
EMI means equated monthly instalment. It is the amount which borrowers pay to the lender on a monthly basis until their loan is fully repaid. The EMI is one of the most important considerations for the borrowers on the basis of which they select a lender.
Many reputed financial institutions in India now offer EMI calculators to make it easier for the borrowers to calculate their EMI in a quick, simple and accurate manner. Grihashakti being a popular lender in the country too has its EMI calculator to help its customers.
If you have never used one such calculator in the past, the below-mentioned tips and tricks to use Grihashakti EMI calculator are sure to help you out.
- Floating interest rate
Loans are available at a fixed interest rate or a floating interest rate. While you can easily calculate EMI on a fixed rate loan using an EMI calculator, things can be a little tricky with a floating rate loan as the interest rate can rise or fall in future. If you are planning to take a loan on floating rate, do consider both the deflationary (optimistic) scenario and inflationary (pessimistic) scenario to have a better understanding of your EMIs in future.
To calculate the deflationary scenario, calculate the EMI by reducing the interest rate by 1%-3% from the present interest rate as the rates might fall in future. Similarly, to calculate the inflationary scenario, calculate the EMI by increasing the interest rate by 1%-3% as the interest might rise in future.
- Make sure that the information you enter is accurate
The EMI calculator requires your loan amount, loan tenure and rate of interest to calculate the EMI. The calculator features a slider which you can move to enter accurate values. Make sure you enter correct information as smallest of mistakes in the interest rate or loan tenure can significantly affect your EMI calculation.
- Confirm the interest rate with the borrower
The financial institutions offer loans at different interest rates. Moreover, two individuals taking the same kind of loan from a particular lender can get the same at different interest rates. The lenders have their eligibility criteria on the basis of which they determine the interest rate.
If you want to use an EMI calculator, you can get in touch with the lender to know the exact interest rate on which you can get the loan to get accurate EMI calculation. A difference of only 0.25 basis point in the interest rate over a tenure of 10 years can have a significant impact on your EMIs. So, it is better to be as accurate as possible.
- Try different loan combinations
When taking a loan, it is important to know whether you will be able to afford to repay it conveniently on a monthly basis or not. So for instance, if you are planning to take a loan of Rs. 16 lacs at 10% interest for five years, the EMI would be around Rs. 28,200. However, if you believe paying Rs. 28,200 every month is hard for you then either reduce the loan amount or increase the loan tenure to pay a lower EMI that you can afford.
The EMI calculator allows you to experiment with various loan combinations to help you pick a deal which perfectly suits your repayment capacity.
- Apply for the loan online
Once you have calculated your EMI, many of the financial institutions now allow you to apply for the loan online. All you need to do is to fill the loan application form to know about the different loan offers available for you. Pick an offer, complete your loan application, and upload the required documents to get e-approval within minutes.
EMI calculators have eliminated the need for the borrowers to manually calculate their EMIs which is often a time-consuming process which can also lead to errors. Use these tips when using an EMI calculator and you will surely be able to calculate your EMIs is a quick and hassle-free manner with complete accuracy.