Purchasing a house would be one of your most cherished dreams. And a home loan can help you fulfill that dream faster. So whether you are buying a plot for house construction, building a house, purchasing an apartment, buying a resale property or even re-modeling your current home, you can get the loan you require without any hassles. Now when you take a loan, you need to repay it back – by regularly paying EMIs.
What is a Home Loan EMI?
Home loan EMI is the fixed monthly payment that you need to make to repay your home loan as per a given schedule that can be calculated using a house loan emi calculator. EMI stands for Equated Monthly Installments.
Why should you calculate home loan EMI beforehand?
All loans have their own set of eligibility criteria’s that the applicants have to meet. Apart from that, you yourself need to know how much you are comfortable paying as EMI every month. This is the reason that calculating EMI using a housing loan emi calculator, even before you actually apply for the loan helps in getting a rough idea about your future monthly obligations.
How to calculate Home Loan EMI?
Calculating your EMIs is very easy. Just use the home loan EMI calculator given on this page. You only need to provide the following inputs:
- Loan amount
- Loan tenure
- Interest rate
As soon as you press the submit/calculate button, the Home EMI Calculator will tell you the loan EMI, interest payable and total amount to be paid.
An EMI consists of two components – principal repayment + interest payment. Each and every EMI goes towards repayment of a part of the principal amount and also towards paying interest due on the outstanding loan amount. During the initial part of the loan tenure, a large part of EMI goes towards interest payment. But as the loan progresses, the EMIs contribute more towards repayment of principal amount.
Tata Capital Home Loan Features
This is a unique feature of Tata capital home loans. We understand that every borrower’s needs and circumstances are unique. Some are comfortable paying more during later part of the tenure while others are looking to pay the same amount throughout the tenure.
Tata Capital’s home loan allows you to structure the loan repayments as per your current and future expected financial situation. So if you think you can pay higher EMIs in future (in line with expected increase in your income), then you can do that using the step-up option. And that is not all. You can choose a tenure that suits you – starting from 12 months to as long as 360 months.
The amount that can be availed also ranges from a small Rs 2 lac to a much higher Rs 10 crore.
The rate of interest is the most important factor while making the choice of a loan. Tata capital offers home loans at attractive interest rates of as low as 10.15%. So to understand the impact of low interest rates on your EMIs, you can try out using different rates in the emi calculator for home loan.
Part Pre-payment of Loan
When you take a home loan, you are almost always short of funds after you pay your EMIs every month. But as time progresses, your income also increases. This means that you can comfortably pay an amount that is even more than your regular EMI. Isn’t it?
This is the reason that lenders now allow the option of making part-repayment as and when you are comfortable. Using this, you could opt to pay a monthly amount in addition to the EMI payment.
Tata Capital allows you to make penalty-free prepayment of upto a maximum of 25% of principal outstanding in a year. The benefit of part repayment is that it reduces the outstanding loan amount, which in turn reduces the interest amount due. So without changing the EMI after making the part-prepayment, the contribution of EMI towards principal repayment increases and the loan gets repaid faster.
Foreclosure of Loan
We at Tata Capital understand that in future, you might be in a position to clear off your entire loan. For this, we provide you with competitive and borrower-friendly foreclosure options. We do not put any foreclosure charges on floating rate loans sanctioned to individuals or on fixed rate loans being pre-closed out of borrower’s own sources.