A First-Time Homebuyer’s Guide to Using a Housing Loan EMI Calculator

Buying your first home can be a major financial decision, therefore, it requires careful planning. While the prospect of homeownership is exciting, it is important to understand your repayment responsibilities from the beginning. A housing loan EMI calculator can help you estimate your monthly instalments and plan your finances effectively.

In this article, we explore the housing loan EMI calculator, eligibility criteria, and the documents required in the home loan process. 

What Is a Housing Loan EMI Calculator?

A housing loan EMI calculator is a free online tool that helps you estimate your monthly repayment amount, which includes both the loan principal and the applicable home loan interest. 

To get started, you just need to enter three details:

• Loan amount – how much you want to borrow
• Interest rate – the rate charged by the lender
• Tenure – the period over which you will repay the loan

The calculator will then display the EMI amount along with the total interest and amount to be paid by the end of the tenure. Some advanced calculators may also provide a repayment schedule (amortisation table) to give you a detailed break-up of your EMIs. 

Why First-Time Buyers Should Use a Housing Loan EMI Calculator

First-time homebuyers can use a housing loan EMI calculator as it:

1. Gives a Clear EMI Estimate

Knowing your monthly payment helps you decide whether the loan fits within your current income and expenses.

2. Helps Compare Loan Options

You can try different loan amounts, interest rates, or tenures to see which gives you a manageable EMI.

3. Provides an Estimate of Optimum Loan Amount

By seeing the total repayment upfront, you can make more realistic borrowing decisions and avoid taking on more than you can handle.

Home Loan Eligibility Criteria

Lenders determine the loan amount borrowers can avail of typically based on the following factors: 

1. Age

Most lenders require applicants to be at least 21 years of age. The maximum age is usually capped at 60–65, depending on whether the applicant is salaried or self-employed.

2. Employment

You should have at least 3 years of work experience if you are a salaried applicant. For self-employed applicant, a minimum of 3 years of business stability is required. 

3. Credit Score

A credit score above 750 is preferred, as it reflects responsible credit behaviour.

4. Nationality

Indian residents as well as salaried NRIs can be eligible to apply for a home loan. 

Documents Required for Home Loan

To apply for a home loan, you will need to submit certain documents. Having these ready in advance can speed up the approval process.

Here is a checklist:

1. Identity and Address Proof

• PAN Card or Form 60 (mandatory)
• Aadhaar Card
• Passport or Voter ID
• Utility bill (such as electricity or water)

2. Income Proof

If you are salaried:

• Salary slips (last 3 months)
• Bank statements showing salary credits
• Form 16 or Income Tax Returns

If you are self-employed:

• Business registration certificate
• Income Tax Returns (last 3 years)
• Profit & Loss statement and Balance Sheet

3. Property Documents

• Sale agreement
• Title deed
• Property tax receipts
• Approved building plan (for new constructions)

For first-time homebuyers, preparation is key. Using a housing loan EMI calculator helps you estimate your monthly repayments and structure your loan wisely. 

Note to readers: This article is part of Mint’s paid consumer connect Initiative. Mint assumes no editorial involvement or responsibility for errors, omissions, or content accuracy.

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