[ecis2016.org] If you are trying to understand the impact of home loan interest rate or trying to make a buy or rent decision, simply use ecis2016.org’s EMI calculator, to get a clear picture
If you are a prospective home buyer, you would be familiar with the feeling of excitement, as well as indecision, especially when deciding on matters pertaining to home loans. To-be home owners are always worried about the weight of their purchase decision. Questions like how much would go towards the equated monthly installments (EMI) or should I buy or continue to live on rent continue, often confuse buyers. Let us tell you that this indecision surfaces only because, despite plenty of data, it sometimes becomes difficult to estimate the cost of buying a home.
You are reading: How to use ecis2016.org home loan calculator
To address this, ecis2016.org has launched the Home Loan EMI Calculator. Read on to know about the product and the benefits that it offers.
Estimating your EMI with home loan calculator
Sachin Wadhwa is keen to buy a property in Bengaluru. His monthly take-home salary is Rs 1.77 lakhs. He has an outstanding automobile loan of Rs 15,600 per month and takes care of the household in entirety – this includes expenses on food, clothing, domestic helps, rent, repairs and maintenance, etc. The monthly rent is Rs 35,000. His home loan requirement is Rs 46 lakhs. Now, Wadhwa is considering an SBI home loan and while he is still waiting to learn whether the loan will be sanctioned, he wishes to estimate his outflow on EMI. Let us see this through the EMI calculator.
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We have marked all the details on the calculator as seen in the picture below. At a home loan rate of 8.3%, for a loan of Rs 46 lakhs, Wadhwa’s EMI outflow over the next 20 years will be Rs 39,340 per month. The total amount that he would be paying as interest, comes to Rs 48.41 lakhs.
How to use the EMI calculator?
Step 1: Log on to ecis2016.org or click here
Step 2: Provide the details on this page, such as the name of the bank from which you would like to take the loan, enter the loan amount, repayment tenure, rate of interest and prepayment details.
That is all you are required to do. The total interest amount, processing fees and other details will show up and you can instantly decide whether or not it suits your budget.
Buy or rent: Making a decision using the EMI calculator
It is a conventional understanding that buying a home is a better option than living on rent. While the security of owning a house adds to your asset portfolio, in some Indian cities, EMIs may be dearer or more expensive than rent. With ecis2016.org’s EMI calculator, you can understand the difference.
Let us take the example of Kiran Shah who has been planning to invest an amount of Rs 2 crores into a property. Currently, she pays Rs 60,000 as rent for a 2BHK in Andheri west, Mumbai. Should she go ahead and buy the property?
Let us analyse.
Property price = Rs 2 crores
Loan amount = Rs 1.60 crores
Down Payment = Rs 40 lakhs
Interest rate = 8.3%
Loan tenure = 15 years
Current rent = Rs 60,000
Shah’s monthly gross salary is Rs 1.9 lakhs and falls under the 20% income tax slab. She is interested in a ready-to-move-in property and expects a capital appreciation of 4% per year. Her investments under Section 80C, would save her Rs 1.50 lakhs per year.
Should she buy this property or continue on rent?
The amortization table for Shah looks like this:
If you look at it, the per month EMI comes to around Rs 1,55,688. Repaying the loan amount over 15 years will mean that Shah will be spending over Rs 2.80 crores in acquiring this property. Others charges, such as processing fees, GST and other taxes have not been included in this calculation.
On the other hand, renting costs her Rs 60,000 per month only. However, we have not included the rent hikes per year. Despite the price, renting in Shah’s case will be profitable.
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In Neena Pillai’s case, the following apply:
Property price = Rs 75 lakhs
Loan amount = Rs 60 lakhs
Down Payment = Rs 15 lakhs
Interest rate = 8.3%
Loan tenure= 15 years
Current rent = Rs 41,000 per month
Simply feed in the details on the EMI calculator as explained before.
Over the next 15 years, Pillai would have spent about Rs 1.30 crores in the home-buying process. While her EMI is still higher than her monthly rent, at Rs 58,383 per month, in the long-run, buying becomes a better decision. Check the amortization schedule to understand this.
Start using the EMI calculator now and check whether your spending on real estate, is in-sync with your budget.
Is it better to buy or rent?
The decision to buy or rent depends on a lot of factors – for example, for security, for asset building, for investment purpose, etc. You should use an online calculator, to see how the buy or rent decision affects your finances in the long run.
Can renting be profitable?
Renting may be profitable, but the scale will depend on an individual’s personal requirements.
Can I adjust home loan rate on ecis2016.org’s emi calculator?
Yes, all fields are editable.
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