Wednesday, August 10, 2022
HomeFinanceKnow how to calculate your PNB Housing Home Loan EM

Know how to calculate your PNB Housing Home Loan EM

Buying a home requires huge financial commitments, and home loans help you buy a house of your choice. PNB Housing is a trusted brand that offers customized home loans to its customers. You can use the loan per your requirement to buy a home, build one or renovate your existing home.

You must repay the borrowed amount in equal monthly installments (EMIs). Home loans run for a long term, you will be paying monthly installments for quite a few months, and most likely, these EMIs will run in thousands. 

Therefore it is a good idea to be sure about the exact amount you would be paying every month when you apply for a home loan. 

Benefits Of Calculating your PNB Housing Home Loan EMI

You can calculate your PNB Housing Home Loan EMI with the help of the EMI calculator. The home loan EMI calculator is a useful online tool that helps you compute monthly installments. 

The benefits of knowing your monthly benefits are discussed below.

Helps In Financial Planning

As we said earlier, loans are a long-term commitment; an EMI calculator can aid you in financial planning. You can calculate your home loan EMI and plan your finances accordingly. If you feel the installment are high, you could reduce the loan amount or increase the loan term. 

You can also budget your other expenses to free up funds to pay your EMIs. The tool gives you an exact amount; doing it manually could be difficult. 

Know Your Total Interest Burden

The EMI calculator shows you the total interest you will pay over the loan term. Once you enter the loan amount, the loan term, and the interest rate, you get the entire interest amount for the loan period. 

By doing so, you will know the total interest burden and the cost of your loan. 

Compare Home Loans

Before you apply for home loan, you should compare the offers from various lenders. The EMI calculator can help you make this comparison. Even a minute difference in the interest rate impacts the loan EMI and the overall loan cost. Keeping other aspects in mind, you can compare lenders based on the rates they offer. 

For example, if one lender offers lesser interest rates but higher processing fees, you can use the EMI calculator to compute and compare the overall loan cost. 

How to Calculate Your PNB Housing Loan EMI

When you apply for a home loan, documentation and paperwork take up a lot of your time and may require some effort from your end. A manual calculation may not provide accurate results, and comparisons will be tougher. 

PNB offers a user-friendly option to calculate your EMIs; an online calculator to calculate the monthly installments.

The steps to follow to know your home loan EMI is listed below:

  • Key in the loan amount; the amount your wish to borrow
  • Next, you need to enter the loan term; you can use different loan terms to compare the EMIs and the total interest cost
  • You also need to enter the expected interest rate charged on the loan

The calculator will give your EMI amount based on the data you enter. You can change the loan amount or the interest rate to compare various options.

Few Aspects To Know About Your EMI

  • Home loan installments generally start from the following month after your loan is disbursed
  • For an under-construction property, you can choose the start EMIs after the final disbursement. 
  • Your home loan EMIs have two components, the principal and the interest; the interest component is higher in the earlier years of repayments and reduces as you keep paying the installments, and the later stage EMIs have a higher principal component
  • If your loan is at a higher interest and there are loans available at lower rates, you can use the balance transfer option to reduce your EMI burden

To Sum It Up

Home loans help you fulfill your dream of buying a house; they are a liability that needs to be repaid promptly. Knowing your exact EMI when you take a loan can help you plan your finances, compare loan offers and make informed decisions. Calculate your EMI using the online calculator for accurate results. 

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