EMI stands for Equated Monthly Installment. It involves repayment of the principal amount and payment of the interest on the payable amount of your home loan. A longer loan tenure (for a maximum period of 30 years) helps in reducing home loan EMIs.
What are Home Loans Key Features and Benefits?
A home loan needs to buy a property or purchase a flat, Bungalow, or raw house from builders in approved projects.
Home Loans approved for the purchase of properties from Development Authorities such as DDA, MHADA, etc
Loans for the purchase of ready-to-move properties are authorized by the authority of India.
Loans approved for construction on a freehold/leasehold plot or a plot allotted by a Development Authority
There is an expert legal and technical counseling team to help you make the right home-buying decision
Home loans are availed by all banks. There is an Integrated branch network for availing and servicing Home Loans anywhere in India
There is a special arrangement for Home Loans for those employed in the Indian Army.
Banks provide home loans to customers of all age groups and employment categories. A longer tenure loan of up to 30 years, a telescopic repayment option, under a low-interest rate that young customers to become homeowners at an early stage of their life.
Banks can understand the diverse needs of our customers and fulfill their dream of owning a home with their experience.
Home loan EMI on Loan Calculated
The formula for EMI Calculation is –
P x R x (1+R)^N / [(1+R)^N-1] where-
P = Principal loan amount
N = Loan tenure in months
R = Monthly interest rate
The rate of interest (R) on your loan is calculated per month.
R = Annual Rate of interest/12/100
If the rate of interest is 7.2% p.a. then r = 7.2/12/100 = 0.006
For example, If a person takes a loan of ₹10,00,000 at an annual interest rate of 7.2% for a tenure of 120 months (10 years), then his EMI will be calculated as: loan EMI with ease.
EMI= ₹10,00,000 * 0.006 * (1 + 0.006)120 / ((1 + 0.006)120 – 1) = ₹11,714.
The total amount due will be ₹11,714 * 120 = ₹14,05,703. The principal loan amount is ₹10,00,000 and the Interest amount will be ₹4,05,703
Calculating the EMI manually using the formula can be boring.
EMI Calculator can help to calculate loan EMI with ease.
What is Home Loan Amortization Schedule?
Loan amortization is the process of paying the loan with regular payments over the loan period. An amortized loan is one where the loan is paid down through equal monthly installments. In amortization, the process is one where the principal of a loan is paid in equal monthly installments.
EMI calculators give an understanding of the principal amount to the interest due, based on the loan tenure and interest rates. The home loan EMI calculator provides a full break-up of the interest and principal amount.
Various Repayment Plans enhancing Home Loan Eligibility:
Various repayment plans for home loan eligibility to suit diverse needs.
Step-Up Repayment Facility (SURF)
SURF offers an alternative where the repayment schedule is linked to the expected growth in your income. You can opt for a higher amount of loan and pay lower EMIs in the primary years. Eventually, the repayment is quickened equitably with the assumed increase in your income.
Flexible Loan Installments Plan (FLIP)
FLIP offers a personalized solution to suit your repayment capacity which is likely to alter during the term of the loan. The loan is organized in such a way that the EMI is higher during the initial years and equitably decreases in proportion to the income.
Tranche Based EMI
If you buy an under-construction property you are required to service only the interest on the loan amount till the final disbursement of the loan and pay EMIs thereafter. In case you wish to start principal repayment instantly you may opt for the proportion of the loan and start paying EMIs on the accumulative amounts disbursed.
Accelerated Repayment Scheme
This option provides you the flexibility to increase the EMIs every year in amount to the increase in your income which will result in you paying the loan much faster.
Telescopic Repayment Option
You get a longer repayment tenure of up to 30 years with this option. This means an increased loan amount eligibility and smaller EMIs.
Approximate EMIs of your housing loan by using our feature-rich EMI calculator, now!
After getting an estimate of EMI using the EMI calculator, you can apply for a home loan online from the comfort of your living room easily with Online Home Loans.
Pre-Approved Home Loan
Pre-approved home loan even before you have pointed out your dream home. A pre-approved home loan is a principal approval for a loan given based on your income, creditworthiness, cibil, and financial position. Home loan EMIs depend on the principal amount of a Pre-approved home loan.