Home Loan Emi Calculator

Are You Choosing The Right Home Loan Policy?

Rising cost of residential accommodation is primarily one of the main reasons why home loans have increasingly gained popularity in India. There is a tremendous amount of disparity in demand and supply of 'quality' residential accommodations in India.

Home loans are easy options families can buy the house of their dreams, despite not having sufficient amount of funds. The popular types of housing loans include: Land Purchase Loans, Home Purchase Loans, Home Construction loans, Home Expansion / Extension Loans, Home Improvement Loans, Home Conversion Loans, NRI Home Loans, Balance Transfer Loans, Bridged Loans, etc.

Banks across the country provide home loans to people, allowing them to pay back the entire lump sum through EMI's -i.e. Equated Monthly Installments that are distributed over an allocated period of time. It is offered both by all public and private sector banks operating in India. These loans then become easier to pay by middle-class families in India. 

From the vast amount of banks and financial institutions, customers usually face a tough task to find the right bank/institution which offers the best home loans in India. Usually online portals help here. They offer customers the lowest possible rates through a totally online process; without having to actually go to various banks to compare loan offers and interest rates.

However, there are certain essential aspects any customer who is looking out for a housing finance should pay attention to. Some of the factors include grounds of interest rate, tenure, amount, processing fee, penalties, prepayment charges, guidelines, EMI amount and additional charges. 

A customer who is trying to find the bank/institute offering the best home loan should look for that bank which provides low interest rates, maximum amount, maximum tenure, low EMI amount, no prepayment charges, low or free from processing fee, no additional charges and easy guidelines.

An EMI has to be repaid to the bank or lending institution through proper home loan emi calculator within a specified number of months based on the rate of interest, total loan amount and the tenure of repayment that is agreed upon by both the parties. There are two basic elements in the EMI - the Principal and the Interest. An easy way to find out the total loan amount in addition to the interest accrued on it and then dividing the same by the repayment period.

Usually calculating monthly installments is quite a challenge for loan borrowers. Tools such as a home loan EMI Calculator make it easier to calculate the equated monthly installment amount. They are online calculators which can be accessible anywhere and anytime.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/you-choosing-right-home-loan-policy-1161506.html?]

Housing Finance - Excellent Home Loan

Home loan or housing finance predominantly serves housing needs of individuals. They might be of anything like buying new house, property or land, construction of a house, doing some renovations to the house and making some extensions. The housing finance is absolutely one of the most important and productive loan products that help you materialize your dream housing project. It basically involves giving you monetary assistance so that you can purchase new house or carry out renovation or do other housing projects aforesaid.

Most of the time, we don't have sufficient money in order to purchase new house. Considering that this is very expensive venture for any individual, home loan is seriously a good resort to mitigate the gravity of financial problem in order to materialize the dream housing project. This is true that housing loan has its relevance to solve inordinate housing projects. Thankfully we don't have problem of finding source to obtain such finance as there are many banks or lenders in market.

To get a hand on such finance, one has to wade through procedures of documentation. Followed by yours giving an application letter to the bank, the process of documentation entails submission of credentials like income proof, resident and age proof and address proof. Bank statement is one of the most important credentials in this aspect.

Since it includes all your financial transactions, the bank has easiness to understand your spending or expending habits. You are supposed to have updated version of your bank statement, not something more than 7 months ago. This will help you lender know about current financial transaction history of yours.

It is must to submit documents according to the type of aspirant you are. In other words, salaried and self-employed aspirants should submit documents in accordance with the terms and conditions specified. It is mandatory to submit original and relevant documents to the lender in order to qualify for the finance. If you make mistakes, better proofread them before submission.

Through Online Emi Calculator Home loan interest rate, higher or lower, all depend on the type of credit worthiness you maintained. This denotes to the fact that you don't have any outstanding loans or unpaid credit card bills. If you have any one of these defected credit worthiness, better clear off them before you apply for the loan.

Consideration of age and current income and repayment capacity are some of the home loan eligibility criteria to qualify for the finance. Bear them in your mind before you set off for the loan.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/housing-finance-excellent-home-loan-967106.html?]

Emi Calculator India

How existing Borrowers can reduce their home loan interest rates

Lenders are aggressively reducing interest rates on new home loans. But what if you are an existing borrower? Those who have taken home loans before April 2016 are still paying a higher interest as their loans are either base rate-linked or benchmark/retail prime lending rate (B/RPLR)-linked. The options before you are as follows

If bank is the lender

One-time switch to MCLR: You can switch from a base rate to MCLR or marginal cost-of funds based lending rate. The latter is more dynamic as it is directly linked to repo rate and allows you to enjoy the change in interest rates faster. “In the current cycle of lower interest rates, it makes sense to shift to MCLR as a downward change in repo rate will lead to lower MCLR

There is also a cost involved. Banks charge a conversion fee of around 0.5% on your outstanding loan amount, plus taxes. For instance, if your home loan outstanding is Rs 20 lakh, the conversion fee would be around Rs 10,000, plus taxes. Most importantly, switching to MCLR is a one-time option; you cannot revert to base rate again. And once you choose an MCLR rate, you cannot reset it for the next one year.

If loan is with NBFCs

Reset to a lower rate: The MCLR system doesn’t apply to housing finance companies (HFCs) and non-banking financial companies (NBFCs). So, if you have taken a loan from either, you can reset your interest rate by paying a conversion fee.

Once you opt for a reduced interest rate either with banks or NBFCs, you have the option of maintaining the same EMI or lower the loan tenure and vice versa. In case you choose the option to lower the EMI, you would be required to provide new ECS mandate/post-dated cheques.

Cost-benefit analysis

Before taking the plunge, calculate the total cost you are incurring to reduce your interest rate, and the savings you are making in the process. If the fees are higher than the savings, it doesn’t make sense to switch or reset. Account for the total cost—conversion fee plus taxes. Look for at least 25 bps differences in interest rates.

Also, consider the remaining tenure of your Home Loan. “When the balance tenure is only a few years, it is not advisable to switch/reset as the bulk of the interest component would have been paid and EMI would constitute mainly the principal

Refinance options

If the deal with your existing lender isn’t lucrative, you could consider refinance or balance transfer option. However, it is a lengthy process. It is like getting your loan approved all over again. Refinancing can be costly too. Various fees of the new lender can be up to 50 bps of the loan amount and then there is the mortgage fee plus taxes.

[Source: http://economictimes.indiatimes.com/wealth/real-estate/how-to-bring-down-your-home-loan-interest-rates/articleshow/55385784.cms]

Emi Calculator

Everything You Need to Know About the EMI Calculator and Its Benefits

Every individual has a different financial requirement and spending habits. No doubt, at a time, these individuals will opt for extra financial assistance in the form of loans to help assist in any financial requirement. Whether it is a car loan, personal, loan or even a loan, as an applicant you will need to consider the basic features of it, namely how much will it cost you?

This cost is calculated in terms of monthly payments, known as EMI's. EMI's are calculated on the amount that you have borrowed, along with the interest you will need to pay on this borrowed amount. Additionally, it will also include the processing fee for the said loan. Using these details, you can calculate the ideal amount of EMI you can afford to pay.

However, at times, the calculating process can be tedious. Especially if you are comparing different financial institutes to see where you can get the best rates. However, by using the EMI calculator, you can easily calculate the ideal EMI through Emi Calculator that will suit your need in mere seconds. On adjusting the features of the calculator, this financial tool will provide you with three part information. The first would include the details of the EMI itself. The second part would include the breakup of the payments that are due. The third part, which is provided by a selected few calculators include the amortization table.

The EMI

EMI also known as the Equated Monthly Installments is the amount that you are expected to pay if you go in for a loan. This amount would include the payment of the principal amount and the interest that is applicable to the loan. It is one of the most important features of the EMI calculator, as it provides the details of the affordability of the loan, and how you can afford it.

[Source: http://www.sooperarticles.com/finance-articles/everything-you-need-know-about-emi-calculator-its-benefits-1482617.html]