Purchasing a piece of land or a house entails incurring significant charges. This is why most prospective buyers turn to external financing in the form of home loans to finance the purchase. Much like home loans, these require borrowers to undertake elaborate paperwork and comply with eligibility criteria to avail the advance.
Nonetheless, most financial institutions have been slashing down interest rates to boost home buyer’s convenience. However, to ensure that he/she does not default on repayment, individuals can make the use of a home loan EMI calculator to check the ensuing liability.
Furthermore, applicants can also check their eligibility by using a home loan eligibility calculator. Using this and the home loan EMI calculator will place a borrower one step ahead in the loan sanctioning process.
Following is an elaboration on how to use a land loan EMI calculator.
How to use a land loan EMI calculator?
Similar to the home loan EMI calculator, it requires following the steps below to estimate the monthly instalment amount that one needs to service after availing a home loan.
- Visit the page for the home loan EMI calculator and enter the loan amount.
- The loan tenor is vital information for calculating EMIs. It determines how high or low an EMI the borrower will need to serve. Enter this information.
- Similar to home loan rates, it is important to ascertain the home loan rates and enter the same in the calculator.
- On clicking ‘Calculate’, the EMI amount will appear.
Even though this process seems simple, there are certain things to keep in mind before securing a land loan.
Points to remember before opting for a land loan
- The type of land a borrower purchases is an important factor to focus on to start with.
- Scoping the location of a particular home is a determining factor before making investment plans.
- Any purchaser’s ultimate goal is to reduce the financial burden. Therefore, selecting an appropriate loan tenor is crucial for the loan application process. One can choose the tenor and home loan rates by comparing offers from various lenders.
- One should be clear about the purpose of purchasing the land. This will help an individual to plan the loan application process better.
- Borrowers should at no cost ignore the lender’s demands while applying for a home loan. It is advisable to maintain a good credit history to enjoy easy loan approval.
Taking these factors into consideration and calculating EMIs by using a home loan EMI calculator will help an individual estimate his/her expenses in the coming years. Considering that, one can plan accordingly and then proceed with the investment.
Furthermore, one should also take note of the documents that are necessary for a land loan application to facilitate a hassle-free experience.
Documents required for a home loan
- Borrowers should fill up the application form carefully and submit it
- Provide passport size photographs
- Submit any photo identity proof like Voter ID, Aadhaar card, etc.
- Address proof
- Account statements of the last six months are mandatory.
Alongside providing these basic documents, one must be thorough with the benefits of calculating EMIs online before taking any loan to optimise their borrowing experience.
In this regard, looking for pre-approved offers provided by financial lenders can be advantageous. These offers, available on various financial products, including home loans, loans against property, etc., can help to streamline the loan application process. You can check your pre-approved offer by submitting your name and contact number.
Therefore, by using a home loan EMI calculator, one can simplify the process of investing in a piece of land to quite an extent.