Home Loan Calculator helps the people to determine whether they are eligible to apply for a loan or not. There are different prerequisites for different banks. One has to fulfill the criteria which have been posed by the specific banks. Generally, a person has to be aged between 23 years to 62 years for sanctioning a home loan.
How to Calculate Home Loan EMI Online?
Home Loan EMI Calculator follows a step-by-step process to find out your EMI. Here’s how you can use it:
- Step 1: Use the first slider to select the amount of loan you are looking for it. You can do this by moving the slider to the appropriate amount. You can also enter the amount in the corresponding space if that is easier.
- Step 2: Use the second slider to choose the tenure of the loans. Or you can enter the number in the given space.
- Step 3: Enter the interest rate that your lender is charging. Forex, if you are giving a quote of 10.55% p.a., enter the same here.
- Step 4: In the next space, enter the processing fee applicable to your loan.
- Step 5: The last section is regarding pre-payments. If you plan on making pre-payments during the loan period, choose “Yes” and give the necessary details. If you’re not making pre-payments, select “No”.
- Step 6: Now, make sure that all the figures you’ve entered are correct and then click “Calculate”.
What are the general prerequisites for sanctioning a home loan?
- The person should be a salaried one; he can be a businessman or a serviceman and should belong from that particular country from where he intends to take the loan.
- He or she should be at least 21 years of age.
- He or she should have a stable profession. It makes the loan procedure easy.
- Also, keep in mind that if you have a bad credit history before a period of 3 months, your home loan might not get passed. Thus try to clear all the bad credits.
Factors that Affect Housing Loan EMI:
- Principal- It is the advance sum that you benefit from the moneylender. It is straightforwardly corresponding to your EMIs – lower chief will bring down your regularly scheduled payments and the other way around.
- Rate of interest- is the rate at which the bank offers you the credit. It is additionally legitimately relative to the estimation of your advance EMIs.
- Tenure- the time inside which you reimburse your advance. The residency is conversely corresponding to your increase EMIs – more extended residency makes the regularly scheduled payments less expensive and the other way around.
What are the Advantages of Knowing Home Loan EMI in Advance?
Great arranging consistently guarantees stable accounts. Figuring the lodging advance EMI ahead of time gives a superior comprehension of the measure of cash you would need to go through always. Thus, you can design well and choose whether you are ready to save a lot of money or not.
Home Loan Prepayment Calculator
RBI enables banks to compute prepayment charges just on the exceptional credit sum. Ordinarily, the more you’ve had your advance, the lesser will be your excellent credit, and the littler your punishment will be. As talked about above, drifting rate home credits taken by people excluded from prepayment charges. For other people, banks charge a pre-installment penalty of 2-3% on the extraordinary advance sum at the hour of prepayment.
A Home Loan Prepayment Calculator knows the effect of fractional installment of your home advance. Doing a prepayment or part-prepayment of your home credit will bring about incredible investment funds over a significant period and a decrease in your current lodging advance residency and EMI. At the point when you make a home advance reimbursement, you get two alternatives:
- To lessen the EMI sum and keep the residency same
- To lessen the residency and keep the EMI the same.
What Are Home Loan Prepayment Charges?
A prepayment punishment is an expense or charge that you need to pay to the bank if you choose to reimburse a credit before the finish of its term. As a borrower, you may decide to close your loan before time to lessen your borrowings and month to month intrigue trouble. You may choose to reimburse the credit from your investment funds or by moving your advance to another bank to get lower loan costs.
Who can make Home Loan Prepayment?
While a prepayment on your home loan can be beneficial for you, it is a loss for your home loan provider. For home loans, banks borrow funds based on a commitment for an extended period. When a customer pre-closes their home loan, those funds received by the bank must be re-assigned through credit channels, which is an additional cost for the bank to bear. It is is the reason why loan borrowers are discouraged from prepaying their loans by the bank. One of the most common methods in which banks discourage prepayment on home loans is be refusing to accept the payment unless the borrower visits the bank branch in person.
However, though most people may not be aware of the fact that even if they may not be physically present at the bank branch to make the prepayment, they can do so by authorizing a representative to make the payment of their behalf. For this purpose, the representative must carry a letter issued by the original loan borrower authorizing them to make the payment on their (the loan borrower’s) behalf.
Read More – Kotak Mahindra Bank Business Loans
Home Loan Interest Rates of Top Banks:
Bank RLLR Minimum Interest Rate Maximum Interest Rate
Syndicate Bank 5.15 7.85 8.20
Bank of India 8.00 8.10 9.00
Indian Bank 7.95 8.30 8.55
SBI Term loan 8.05 8.35 8.70
Home loan calculator is, after all, a machine and would never show accurate rates. It is thus always advisable to use it to get an idea and not entirely depend on it. For actual rates and more suggestions, you should always take advice from professionals who can guide you through the entire process. Also, it is essential to remember that every transaction includes specific terms and conditions which one should be aware of to avoid any further problems.
Krishna Murthy is the senior publisher at Finance XOD. He is not only the senior publisher but also the owner of Tricky Finance. Krishna Murthy was one of the brilliant students during his college days. He completed his education in MBA (Master of Business Administration), and he is currently managing the all workload for sharing the best banking information over the internet. The main purpose of starting Tricky Finance is to provide all the precious information related to businesses and the banks to his readers.