How to Calculate Home Loan Emi

how to calculate home loan emi

4 Tips for Quick Home loan For NRIs

Being able to own the perfect house is a dream that is cherished by everyone. Depending on your choice and decision, though, an ideal decision can be to build that home in your own country. For Non Residential Indians or NRIs, there are a host of NRI loans available for building a house or for buying a plot or house in the country.

Non Resident Indians are currently recognized under the Foreign Exchange Regulatory Act, 1973. With that recognition, it may be a wise decision to get an NRI home loan to help make your dream a reality. With the real estate industry in India booming, it is recommendable for Non Resident Indians to invest in their home town, not only to capitalize on this opportunity, but also to ensure that foreign capital can be pumped into the country. While getting an NRI home loan may seem simple, there are a few steps that you should keep in mind:

Here are a few points that need to be taken to get a quick NRI home loan:

You can only capitalize on an NRI loan provided you have a valid passport as well as other pertinent documents handy. It is also mandatory for the applicant to be a graduate of 21 years and above with a job at hand. A steady income is essential as the amount will only cover 85% of the cost of home as total NRI home loan. While researching about mortgage, bear in mind that up to 36 times of the gross monthly earnings of the applicant may be issued. That being said, it should also be known that there is a certain maximum limit also. Estimating the eligibility of the applicant follows the same steps as what is done for Indians living in the country.

You will need to pledge certain assets as collateral before applying for a loan. These assets can come in the form of shares, debentures or other collaterals. It should be noted, though, that foreign company shares are not seen as acceptable forms of collateral. Making the use of Indian company shares is mandatory against an NRI loan.

Using an NRE account is mandatory while carrying out all the necessary bank transactions. An NRE account helps transfer all profits gained on these funds abroad. Approach only a licensed bank which is allowed to offer a House Loan. The RBI currently offers these licenses to the banks and authorizes them to deal with NRIs.

The interest rates levied on NRI loans are not different from the rates issues to Indians living in this country. Banks and financial houses, as part of their RI services, have to take care of the necessary documents to ensure eligibility before issuing an NRI loan. While the interest rate on an NRI home loan can vary based on several factors, by and large, they range between 7.5-8.50 %.

[Source: http://www.sooperarticles.com/finance-articles/4-tips-quick-home-loan-nris-1343721.html?]

The Different Methods of Calculating Home Loan EMI

Most first time borrowers are under assumption that calculating home loan EMI is easy. All you need is a housing loan EMI calculator. You have to agree with that. It does seem like if you have EMI calculator for home loan, all you need to do is enter right numbers. But, believe it or not it is more complex than that. Here are two reasons. Firstly, lots of factors in the equations remain unaccounted for. Secondly, EMI calculator will not help you get the specifics you actually need. So, here are three common methods.

Manual calculations:

Most of the formulae for home loan EMI calculations are available online. You can easily note them down and calculate EMI as per repayment option, home loan tenure, etc. The ease of doing them manually depends on your mathematics skills. But, most websites do offer an example in order to assist readers calculate home loan EMI. This process is the most tedious one. But, there are few high-level calculations you cannot see with online tools. For example, EMI as per balloon repayment option. Manual calculation is the way to go.

Online calculations:

Most borrowers are familiar with Emi Calculation for Home Loan. Thing is, there are a lot of housing loan EMI calculators in India. All of them do not offer real help. Some are just an online version of basic mathematical calculator. Yet, it does simplify your job, especially if you are not a maths geek. But, there are some efficient EMI calculators for home loan. They support your calculations well with several additional online tools like amortization table. DHFL has one of the best EMI calculators in housing finance industry.

Computer calculations:

You can use excel sheets on a computer to get the job done. It will be as good as some of the online EMI calculators. But, with basic asthmatics skills and few formulae, you can check the basic structure of repayment options too. However, it is not as good as some of the advanced online tools.

Either way, the best method for your calculations is the one that give accurate results instantly. Online home loan calculator is a great choice but not for more customized calculations. However, you will need to know the following before you calculate the EMIs and other details. For example, cost of property, processing charges, stamp duty, legal fees, and realistic interest rates. This information can be made available to you when you meet a relationship manager for the same. Even a third-party personal finance consultant is a great person to meet for these details

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/different-methods-calculating-home-loan-emi-1382560.html?]

A Start-to-Finish Home Loan Tips

Difficulties' pertaining with property loan is easily solved by the available option of Home loan. Borrowing a home loan helps the individual to reduce the burden from his head; it is also true that borrowing should be done with proper and right source. If you are failed to track the correct source and are not aware of the fiscal and taxation consequences in getting property loan it can soak your life and peace of your mind at every single point of time. Here are some guidelines for acquiring, taxation policy and repaying your home loan.

Means, Mediums and borrowing capacity of an individual?

Banks, private money lenders, financial institutions, friends and relatives and also many others are the available means, or sources for grasping the loan, in this Banks plays major role in providing a Property loan. Banks have their own criteria for calculating the capacity of an individual’s borrowing. Banks judge your borrowing capacity from the chart of the total income expenditure done by you in the given period of time. It depends upon the monthly income and expenses flow from your income. Bankers assume around 40% of monthly income can be utilized for paying into the monthly installment.

Like, if your monthly income is about 50000, then the maximum installment amount can reach around 20000. Further, calculation for the final loan amount is also calculated on the period of loan & rate of interest associated. For eg, rate of interest at 9.5%, along with tenure of 20 years then loan of approx 22 lakhs can be availed. Here, your Liabilities are also taken into account by the banks. Henceforth it is recommended that overall expenses should not exceed 55 - 60% of your total monthly earnings to acquire a residential or commercial property loan.

To acquire property loan age factor is also considered by bankers. If an individual is 53 years of age then there are chances of not getting loan through banks whereas on other side if an individual is at 30 years of age then he can easily quote and receive the applied loan. Here age factor is considered by banks so that there should not be any existence of default payment of installments or loss to banks. As the age of 60 is the age where an individual’s get retired from his service and the person with 30 years is still young at his age to easily repay his Emi for Home Loan and outstanding as compared to person of 53years of age.

Monthly CTC salary is also indeed important factor. Allowances and special allowances are not taken into account while lending the money. This includes commission, incentives, monthly bonus all this may reduce your eligilbity for loan to acquire since it is not fixed regular income. Home loan is also favorable for the person who is opting loan for renting the house. Individuals, who has availed the loan and given his flat on rent, can apply for the deductions without harming their HRA's received in their gross salary under sec 24(b).

Joint, family, friends and Relatives loan

If an individual is running with short of funds or reserve to acquire a property and banks reduces his borrowing eligilbity he can go for a co-borrower. Banks generally accepts a co - borrower and provides loan. Some lenders are not very much OK with co - borrower as your spouse, since they think that, there can be any time disputes between the both. So the idea of making your life partner as co - borrower is a good option.

Loan managed from friends, relatives or any other financial sources also enjoys the tax benefits. This comes into effect only if the loan so acquired is for building a property, to buy property, other repairs and renovations accomplished with the property. But, claim and deductions for the loan availed from other financial institutions is not considered under sec 80C. Taxation is liable only in ready constructed properties. However, no tax deduction is followed if the loan is availed to buy an open plot of land.

Taxation Benefits on Property Loan

Under section 80C deductions upto1 lakh can be claimed if an individual repay housing loan. This is very much beneficiary to the person who actually pays the huge amount of installments. Not only this, deductions under sec 24(b) of 1.5 lakhs a year can also be claimed apart, from the taxable earnings of the borrower.

Tax deductions can be claimed individual if there are co - borrowers for the home loan. Individuals are eligible for the benefits as per the ratio of contribution to acquire and ownership of so called property. For instance if wife pays 30% of overall amount from her source then she is liable for the deductions as per her contributed ratio. Thus, if in a current year, principal is repaid of 1 lakh, she can claim the deductions of 30,000 following her husband to 70,000.

[Source: http://www.sooperarticles.com/real-estate-articles/mortgage-financing-articles/start-finish-home-loan-tips-335902.html?]

How to buy property - Home Loan Emi Calculator

A checklist for women buyers

A matter of choice

Single women who have migrated to bigger cities tend to be thorough in their research and base their property purchase on factors such as high safety and security in the neighbourhood.

The average sizes of apartment women prefer ranges from 500 to 800 sq.ft. (In metros) as they often attach greater importance to security rather than the size of the home. Women prefer investing in properties that have functional security solutions and alarms in place, and are willing to pay a premium for the same.

Special Concessions

Recognizing the trend of more women buyers entering the real estate market, both the developer communities as well as lending institutions have special concessions for women. For instance, in states such as Delhi and Haryana stamp duty for women is 1-2 per cent lower than that for a man purchasing property.

Lenders who often view women as better customers as they tend to be more regular with timely repayments have a spate of women oriented loans where the rate of interest offered to a woman purchasing a property is 0.25-0.50 per cent lower than regular home loan products. Further, women are eligible for a tax deduction of up to Rs. 2 lakh on the interest paid on home loans.

Plan your finances

The first thing that to consider while taking a home loan is affordability it can be done through Home Loan Repayment Calculator. A mortgage should be well planned for and invested for through proper investments (the down payment component). At the beginning a career considers equity investments.

Don’t overstretch yourself

Your home loan should not ideally exceed 40 per cent of your salary. If your affordability does not allow purchasing the apartment you have set your heart on, do not stretch beyond your means.

If that means waiting for a while, and investing for a longer time, do so and do not be in a hurry to purchase property. Else, you could consider investing in a smaller apartment for the time being.

Pick lender after scrutiny

As mentioned earlier, there are quite a number of loan products that are directed towards women. For the first level of research go online and make a comparison of all the loan products that seem suitable to your needs.

With many online aggregators, the features of each loan product should be fairly simple to assess. Once your online research is complete and you have a shortlist, make a personal visit to the bank branch and speak to the sales representative to fully understand the features of the loan product you are interested in.

[Source: http://www.thehindu.com/life-and-style/homes-and-gardens/A-checklist-for-women-buyers/article15633667.ece]

A Guide to Simplify Your Personal Loan EMI Calculation

EMI is an amount which is payable to banks or any other financial organization until the loan amount is entirely paid off. Basically, it is the combination of interest amount and principal loan amount which a borrower needs to pay every month. It is to be noted that the interest constitutes a large part of EMI payment in the initial stages. Although, the amount of interest repayment decreases as the tenure comes to an end.

Identify the Loan Cost & Check Eligibility Criteria for Personal Loan

Whenever you think about applying for a personal loan, the only thing that comes to your mind is EMI, which will get deducted from your bank account every month. Be it a personal, home or a car loan, the entire process begins with EMI calculation.

Eligibility conditions are as follows:

The minimum age of applicant should be 21 years and the maximum age shouldn't exceed 60 years

The applicant should have a net monthly income of 20,000 & above, in order to avail the loan hassle-freely.

The applicant should be permanently employed with a recognized organization

Self-employed/businessmen with a good credit score can apply easily.

What can be the Ideal EMI calculator for Personal Loan?

In order to get the accurate EMI on the amount you have lent, you need to calculate the amount you have borrowed, the interest that you will be paying and the money you will be paying for processing fee. Once you have all this data in your hand, you can go ahead and calculate the accurate EMI that is payable on the existing loan amount. After all the Home Loan Interest Calculation, in case you realize that the amount of EMI is exceeding your payment capabilities, you can easily reduce the loan tenure or the loan amount.

Simple Formula to Calculate Your EMI

In order to simplify personal loan EMI Calculation, you just need to enter the following information in EMI Calculator:

Principal loan amount

Loan Tenure

Rate of Interest (%)

By clubbing all these components, you can easily get the accurate payable amount on your personal loan. As a matter of fact, EMI calculator is simple to use, quick performer and easy to understand. You can calculate EMI any type of mortgage by just using this calculator. In case you wish to get a more precise number, you can enter values in the box provided in the calculator. Once the value gets changed, the personal loan EMI calculator will recalculate the Equated monthly income in most precise manner.

This is how, the personal loan EMI calculator helps in planning payments, tenure and how much amount should be borrowed with the best interest rate. Possibly, this is the easiest way to calculate EMI.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/guide-simplify-your-personal-loan-emi-calculation-1487563.html?]