Home Loans for Non-Resident Indians

Owning a personal heaven (read home!) of choice is a dream of every human. It is more a necessity than a luxury to have a beautiful and well-furnished place you can call home. Home loans provided by various Banks and Housing Finance Companies (HFC's), providing finance to the citizens have come the rescue of those willing to convert this dream into reality. It's not just the citizens who are availing these, but even NRIs, whose needs are being looked into, as well. Regarding home loans for NRIs, various queries like "what exactly are they, what do they do, who can avail them" may rise in the minds of many.

How the government defines NRIs:

NRI's are Non-Resident Indians, who are the citizens of our country, and who hold a valid document like, say the Indian passport. They stay abroad for employment or for carrying out a business. Every bank follows the RBI guidelines to provide a home loan to the NRI's who are recognized under Foreign Exchange Regulatory Act, 1973.

Specifications for NRIs intending for a home loan:

Home loans for NRI's are available for construction of new houses or flats, purchase of old houses or flats, flat addition, alteration of existing houses, renovation, repairs etc. NRI's should fulfill certain eligibility criteria in order to get the home loans through Emi Calculator Housing Loan. The documents required for resident Indians and NRI's vary in few respects. These include the age of the applicant which should be at least 21, should be a graduate, the income they get which should be a minimum of 2000$ per month. In addition, the numbers of dependents are also considered.

Other important considerations:

• An NRI can get a maximum of 85% of the cost of property.

• Payment options are critical for providing the loan. It should be only through the Equated Monthly Installments (EMI), which also include the interest and principal amount calculated on monthly rests.

• Payment of EMI is by issuing post-dated checks from his/ her Non Resident External (NRE) or Non Resident Ordinary (NRO) or Non Resident (Special) Rupee Accounts (NRSR) in India.

• They are also provided with various facilities like Step up Repayment, Flexible Loan Installments Plan, Trache Based EMI, and Accelerated Repayment Schemes etc., for the repayment of the loan.

[Source: http://ezinearticles.com/?Home-Loans-for-Non-Resident-Indians&id=6132263]

Knowing What an Investment Property Loan Is

Do not get confused, the term investment property loan simply means a loan for investment of properties. These properties to be invested on are deemed to be profitable in the future that is why people loan to buy them. Presently, the real estate industry has become a lucrative business. A lot of realtors have testified on how they have come from rags to riches after getting into the real estate business. Depending on your talent and the circumstances, loaning to invest on a property may provide you with a good chance of building equity while nurturing the potential of capital gains as the value of the property appreciates over time. If you have the ability, it is definitely not a bad endeavor to try.

An investment property loan can be generally classified into two: residential and commercial. A residential loan is associated with investing residential properties like apartments, condos, buildings (with at least 5 units), stores, or warehouses. They are usually bought for expected future appreciation and rental income. On the other hand, a commercial loan is the one associated with investing on business and commercial areas. They are often more costly since bigger income is also expected to come from them.

Individuals are not the only ones loaning to invest on properties though. Quite a number of real estate investors in the U.S. make use of investment property loans in acquiring real estates too. There are two basic advantages on this. They can benefit from capital growth and tax deductions. Another important benefit comes from "negative gearing".

In essence, the word "gearing" means borrowing for investment. A negatively geared investment means it is a property purchased using a Property Loan Emi Calculator where the expected income (after all the expense deductions) from the investment is less than the annual payable interest. This gives the investor a substantial tax benefit since they may deduct the cost of owning an investment property from their income which is taxable.

An investment property loan can come in different shapes and sizes depending on the requirements of the investors. They may be offered as interim, long-term or short-term loans. If you are interested in engaging into this kind of investment, you should make sure that you are knowledgeable of the terms of the loan. Make sure that you understand the interest rate and the time period of it. You must also keep track of the schedule. You want extra profit and not bigger credit.

There are quite a number of reputable investment property loans in the U.S. Most of them do not provide any limit on the number of properties you could own. They also offer adjustable mortgage rates and they have low down payment options. This is a great help because you can simply use the spare money to repair or renovate the property for future profitable use like reselling it or having it rented. A lot of loan providers also offer application online meaning you will not have to waste time setting an appointment with them or going to their office. Their online service allows quick and easy processing of your application for loan.

[Source: http://ezinearticles.com/?Knowing-What-an-Investment-Property-Loan-Is&id=3284349]

How to Calculate the Proceeds of Your Home Sale

Selling a home takes a lot of hard work on the part of the home sellers especially if they are doing it on their own. A major part of the process involves a lot of calculating numbers from setting the home price, taxes and legal fees to the amount of profit the seller is going to get. But of course, even before the sale is completed, every seller would want to know the net proceeds he or she will get.

The money you will have when by the closing of the home sale transaction will be the total sale price of the property. However, you won't be able to keep the entire amount as you may need to pay for debts, liens and other charges against the property. So, your net proceeds will actually be the total sale price minus the charges which mostly make up the closing costs.

Below are several important fees that are normally paid out of the sale proceeds. Knowing these charges as well as setting a fair market value for your home will help you accurately calculate your potential net profit.

Attorney's fees. Every home seller will need the help of a real estate lawyer. The attorney plays a vital role in the financial transaction not only as an advisor but also as an escrow agent when you need a third party to keep the deposit or down payment. The fee is either a flat fee at a minimum of about $350 or by the hour.

Disbursements. These refer to expenses incurred by a lawyer on behalf of the seller such as the mortgage discharge fee paid to land titles, title search fees, couriers and other charges.

Property taxes. These taxes are paid every year. However, this can be negotiated as to who will should the payment.

Transfer taxes. This is a tax that may be implemented by states, counties or municipalities on transferring real estate property within the jurisdiction. Transfer taxes may range from a small of .01% to 2.2%. It is best that before selling your home, you check your area's rates from the Recorder of Deeds, a title company or a realtor.

Mortgage. The balance of your mortgage will be paid out of the sale proceeds. Unless your mortgage is in good standing, you will also have to pay for mortgage penalty and a discharge fee paid to the lender. All mortgage payments due on or before the possession date will have to be paid by the seller.

Home Loan India. If there's a home equity loan or line of credit secured on your home such as via collateral mortgage or caveat, it must be paid out of the sale proceeds. Also, payment for any home renovation loan will have to be taken out of the proceeds.

Home warranty. This guarantees the buyer that all mechanical and electrical appliances in the home are in good working condition on the day of closing up to the first year of ownership. A warranty costs at a minimum of $350.

[Source: http://ezinearticles.com/?How-To-Calculate-The-Proceeds-Of-Your-Home-Sale&id=1208280]

Documents Needed for Home loan emi calculator

As you have made up a mind to take a home to loan buy your dream house. In today's internet world you start searching on net for best offer. Search engines will take you to the different banks and financial institution websites, which provide home loans. You should also visit websites which offer advices on home loans. From there you get the idea about best interest rates, and other important information related home loan.

After doing all the research about all the factors you apply for a home loan. But most important requirement to get Home loan emi calculator is the documentation which is quite tough. In case you miss out any crucial document your home loan approval will get delayed or may be your application will be rejected.

The first thing is the filling of application form and signing it. Then go through the official site of the bank thoroughly to get information about the mandatory documents needed for applicants. The main documents required for home loan are Proof of age Proof of identity - passport, PAN card, ration card, voter ID card etc.

Banks and financial institutions have specified documents according to the applicant's category, purpose of loan, tenure, amount, etc. From the documentation column you can check the list of documents as per your category.

Salaried applicants

Salaried persons are required to submit salary slip of last three months showing all deductions along with current salary certificate, proof of continuity in job for last two years - either appointment and relieving letters or Form 16 for two years. Bank statement or pass book where salary has been credited for last six months, copy of appointment letter if employed for less than a year in current job, company profile for employees of a private limited company.

Documents related to Property

Khata certificate Latest property tax paid receipt EC for last 13 years, parent documents and all link documents for 13 years, approved plan receipts towards payments already made, in case of an old flat or house you are going to purchase - its sale agreement and title documents in favour of the seller, if you are buying a newly constructed flat then sale agreement or construction agreement with builder, total cost break-up on builder's letterhead (in case of new flat).

To get refinance

In case of getting refinance you have to submit details of previous Home loan emi calculator availed outstanding loan balance letter with foreclosure charges Letter of acknowledgment for deposit of title deeds.

Documents for self - employed

Self employed persons have to submit additional documents to get home loan. These are profile of business on the letterhead of the company, proof of IT returns for last three years, computation of income certified by a chartered accountant along with profit and loss account and balance sheets for three years, business and personal account bank statement for last one year and copy of professional certificate in case of a professional.

One thing to take care of is marginal money since banks calculate percentage according to your income and moreover banks only lend 85 to 90 percent of the loan amount.

Usually the banks ensure that monthly repayments do not cross 40 percent of your take home salary. While scrutinizing the documents bank finds applicant has a poor repayment track record and have sufficient default record on previous debts, then there are very bleak chances of getting home loan.

Article Source: http://EzineArticles.com/1356474

A Fair Trade against Property

If you need money really bad and if you own your own house then getting a mortgage might be the easiest way out. They then pledge their property as a security against money lent to clear the debts. This option is common in the west where people are keen on buying real estate properties and cannot afford to pay the full amount within a short span of time. Get professional help in understanding your specific mortgage. There are many offerings out there and all are different.

The mortgage company should be authorized and registered before they start handing out mortgage loans. So, before buying a Mortgage, make sure to check the following issues:

1. Through Emi Calculator Housing Loan  a mortgage is a long term relationship. So, make sure you know all there is to know about the background of the issuers. You must find out how strong they have been, and what their rate of interest is. Then you must compare the same with other companies to know who the best is. Also, look at how many years the company been in this field. Good credit ratings are another plus as they reassure the person in need of the loan.

2. After checking the issuing company's background, focus on getting all the information you can lay your hands on. The duration and the rate of interest applicable will matter. Make sure you divulge information pertaining to the other financial commitments you have and the time you might require to pay back the loan. Also check about penalties for delayed payments, or possible options if you want to repay before time. If a company is able to accommodate your needs and provide the suitable mortgage, they are the right choice for you.

3. All promises made to you, including any promises of future flexibility, should be documented. Oral promises are not binding unless proven. If the company refuses to sign a contract, they are not reliable or trust worthy, move on to the next company you find. The written document will be legally valid in case either you or the company defaults at a later date.

4. Other charges that might be applicable from time to time -- If you are able to repay the loan before the stipulated time, the mortgager will charge a redemption penalty, so make sure to have that mentioned in the agreement. In the zeal to make a sale, your agent might actually have "forgotten" to tell you about some specific charges.

[Source: http://ezinearticles.com/?A-Fair-Trade-Against-Property&id=820995]

Loan Guide - Tips to Help You, Before Availing a Loan

For a given quality of a product, we want to purchase it at the lowest rate. Remember - loan is also a product and obviously we will like that we get it at the lowest possible cost. Therefore, before availing a loan, a little vigilance can save you many dollars.

So if you are planning to avail a Home Loan, Student Loan or Study Loan, Mortgage Loan, Home Equity Loan, Pay Day Loan, Vehicle Loan or Conveyance Loan etc., here are certain vital tips for you.

THE COST OF A LOAN CONSISTS OF TWO PARTS:

(A) HIDDEN COSTS

(B) INTEREST COST

A) HIDDEN COSTS:

These are the costs about which the representatives of the banks/finance companies are generally silent at the time of selling their product (i.e. loan). But these costs are very much written in the finger prints of the contract you sign with lender. So, it is wise to go through the entire content of documents you are going to sign for availing a loan. Believe me, there will be many points on which you will like to have clarifications from the lenders.

HIDDEN COST CONSISTS OF THE FOLLOWING THINGS:

1. UPFRONT INSTALMENTS:

Some finance companies take certain installments on the first day of the disbursal of the loan. Suppose you have availed a loan of $10,000 and your EMI (Equated Monthly Installment) has been fixed at $410 per month. Now the lender wants you to deposit, say 5 installments in advance. It means you will deposit $2,050 as upfront installments. In this case the finance company has financed you actually $7,950 ($10,000 - $2,050) but the amount of loan on which you are paying interest will be $10,000. The principal amount from your angle is $7,950 but the lender is charging interest on $10,000. So negotiate with the company for not paying any upfront installments.

2. PROCESSING FEE:

Processing fee is the fee charged from the borrower for preparation of documents. Processing fee is generally negotiable and certain companies waive off the entire fee on negotiation. The companies generally reduce the fee if do not waive off the entire fee. So try your best to negotiate on this front before agreeing to avail the loan. It will save you handsome money.

3. CHECK BOUNCING CHARGES/LATE EMI CHARGES:

Through the Property Loan Emi Calculator If you are not able to pay the monthly installment on time or the checks given by you for repayment of the loan have bounced due to certain reason, the lender will charge a penalty from you. Different companies charge different penalty in such cases. Check out with the competing companies and fix this condition accordingly. If not settled before hand, you will have to shell out as per the terms written in the contract which may be exorbitantly high.

4. FORECLOSURE PENALTY:

Foreclosure means paying back the entire loan before the agreed period. Suppose you have availed a loan and undergone an agreement with the lender to pay off the entire money in 24 equal monthly installments. After 10 months you have got some money from somewhere and now you want to pay off the entire loan to the lender. This is a case of foreclosure. The lender will charge certain percentage on the remaining principal. This is called foreclosure penalty. Certain lenders don't let to pay off the entire money before a fixed period, say you will not be allowed to opt for foreclosure during first 6 months and after that you may pay off the loan that too with foreclosure penalty. The foreclosure clause should be clearly understood and settled with the finance company well in advance. After reviewing your financial credibility, the financer can alter/delete this clause to your benefit. So, do negotiate on this point.

INTEREST COST:

Interest cost is the main cost of the loan availed. Here are given some finer points to be learned about the interest rate component.

INTEREST RATE IS OF TWO TYPES

1. FLAT INTEREST RATE

2. MONTHLY REDUCING INTEREST RATE

1. FLAT INTEREST RATE:-

"Flat interest rate" is the rate of interest that is determined at the time of application and is fixed for the duration of the loan.

Let's illustrate it with an example. Suppose you have borrowed $10,000 @ 4% flat rate of interest for 2 years. At simple interest rate formula, the interest for 2 year comes out to be $800. Now the lender adds this $800 in the principal and calculates EMI for 2 years.

[Source: http://ezinearticles.com/?Loan-Guide---Tips-To-Help-You,-Before-Availing-A-Loan&id=217268]

Home Loans - Things to Know

Home loans have made home buying in India approachable and manageable. There are many leading companies that provide customers with easy loans. In the home loan arena, government and well established companies are considered to be the most preferred loan institutions. Known for their unique and compelling propositions, these companies have enabled a hefty number of people achieve their aspirations. There is no point in signing the dotted line of a scheme, which is dripping with heavy interest rates and inconvenient operations of EMI. In simple terms, it is imperative to first understand the do's and don’ts of applying for loans.

Loan Application Requisites:

The usual protocol which banks usually follow is to keep the loan amount 60 times more than your net monthly income.

Your monthly income has to look reassuring to repay the amount in future. For example, if you wish to take a loan of Rs. 30 lakhs, it is mandatory to earn Rs. 50,000 every month.

In case you have taken personal loan or that for buying an automobile, you are not eligible to apply for a home loan.

There are certain things which are required in documentations like address proof, identity proof, income proof etc. that needs to be submitted to the bank or financial institution.

The features and benefits enjoyed by the Home Loan takers are voluminous. Although there are many features which are an integral part of the loan scheme, here are some of those mentioned.

Total Loans:

Many companies understand that purchasing your dream nest and doing all the fittings and other essential tasks would cost you a hefty amount. If you have bought a house and are moving in immediately, these companies give you a separate amount for meeting this requirement as well.

Part Prepayment Facility:

If you have paid your first EMI successfully, you can make prepayments for your loan. Monetary situations might differ from time to time, and most of the people do prefer to make chunk payments, as and when they have funds. Hence, this feature enables them to pay as many EMIs in advance as they like. However, the minimum limit for this is 3 months.

Refinance:

Buying a property with your own money can help you avail this benefit; provide you have bought the property within 12 months. You then become eligible to take loan against property which has been registered.

Prompt Repayment Benefit:

If you are an early bird and always pay your EMIs on time, then you are in for a reward. On clearing the first 12 EMIs on time, you get 0.5 % of the annual interest amount paid back, at the end of 12 months. You get to enjoy this facility for the first 3 years of your loan tenor.

Nil Foreclosure Charges:

Loan can be foreclosed at any time of your home loan tenor. The good news is that you are not subjected to any foreclosure charges.

Online Account Access:

These days, financial companies have their online customer portal that provides details like repayment track, interest certificate, payment schedule and others, regarding your loan. To avail this service, the customer has to make an account on the digital portal.

[Source: http://ezinearticles.com/?Home-Loans---Things-to-Know&id=8522378]

Property loan interest rate Advice for Loan Applicants

Upon deciding on applying for a mortgage loan it is important that you be aware of the housing loan interest rate that you will be required to pay during the term of the loan. There are times when buyers get too excited about the idea of purchasing their own home that they tend to overlook the interest rate incorporated into the loan. They only begin to notice this after a few years of paying their mortgage, and by this time the rates may be too high, especially if the loan has a variable interest rate. If you are faced with such a situation it is best that you call your mortgage provider and have the contract explained to you in detail. If you feel that it is too high, your loan manager may present you with other options such as refinancing in order to be able to save on your mortgage payments.

It is also important that you understand the principles of mortgage rates or interest percentages before you decide to apply for a mortgage loan with a certain bank. A loan manager will present you with four Property loan interest rate packages to choose from: SIBOR, SOR, fixed interest rate, and variable rate. There are many other interest rate packages that may be offered by banks, however, these four are the most popular among property shoppers. The Singapore Interbank Offered Rate (SIBOR) and Swap Offer Rate (SOR) pegged mortgage interest rates both fluctuate according to the changes in the international market. SOR pegged interest rates tend to fluctuate more because it reacts to the ever changing foreign currency exchange rates. For this reason, SIBOR is deemed as more stable as compared to SOR. However, there are instances when SOR pegged mortgage rates can suddenly drop without any warning and can be even lower than SIBOR pegged rates.

A fixed Property loan interest rate is another popular choice by those who are shopping for mortgage loans because it is not affected by economic changes in the world market. Those who choose this mortgage rate package will continue to pay a fixed rate of interest regardless of how the world market is doing for the duration of the mortgage loan.

The principles of a variable housing loan rates for interest are a little harder to understand because it varies from bank to bank. You may find banks that offer lower variable interest rates than others, while some charge higher than usual. This is because variable rates of interest depend on a lot of factors, including your credit background, your ability to pay, and your standing as a Singapore citizen. It is important that you thoroughly understand the computation before you agree to the terms so as to avoid paying more than what you can afford.

To get a mortgage rate that is most suitable for your financial situation, make sure that you thoroughly research about the current mortgage rates in the market before you start doing your mortgage loan shopping. Patience and determination are also very important because running in and out of banks to meet with housing loan managers can be a tiring and time consuming task. Everything becomes worthwhile however when you are able to land a housing loan rate package that is right for you.

Article Source: http://blogs.rediff.com/homeloanemicalculator/2016/08/25/property-loan-interest-rate-advice-for-loan-applicants/

How to Calculate Your Mortgage or Home Loan Payments?

Everyone dreams to have their own house. A house will probably be your largest purchase. To make this dream come true, you work hard; you earn all your life to buy a house. You take a mortgage loan and repay it throughout your life. Every month, you just pay the amount given in your loan statements. When you pay your monthly installments, have you ever wondered how that figure has arrived? Have you ever thought of trying to understand the calculation of your mortgage payments? If not, now is the time.

You are spending your hard-earned money in paying for your mortgage loan amount. How can you be sure that the mortgage company is charging you the fair amount? In the past few years, there has been a lot of financial crisis, especially in the housing sector. But people have learned from it. They are now more in control of their finances. They wish to know where and how their money is going. Thus, everyone wants to know the calculations for mortgage payments on your home.

Calculating home loan payments is not a difficult task. Many home loan calculators are available on the internet. All you need to do is provide the basic details that are: the principal amount of loan, the interest rate, and you loan tenure. You can easily calculate your monthly payment by putting in just the above details. The Property loan emi calculator available on our site will help you to calculate your mortgage payment.

In case you wish to apply for a fresh mortgage, you can put in many combinations of the above three ingredients to get various payment options. For example, if your loan principal is $100,000, interest is 7% and term is 30 years, your EMI will be $665.30. But if you reduce the term to 20 years, the EMI will be $775.30. If you believe that you can pay an extra $90 every month, you can easily keep the tenure as 20 years. When you know how to calculate the payments, you can see what options will suit you the most. This way you can negotiate with the lender at the time of deciding the interest and tenure and the repayment schedule.

However, there are more factors that go into mortgage payments. Even if you have calculated the loan EMIs, you might find your actual monthly payments to be more than you expected. That's generally because of taxes and insurance. So after you calculate your mortgage payments, don't forget to add the homeowner's insurance, taxes and private Property loan emi calculator to get the actual mortgage payments.

There are many benefits in learning to calculate your mortgage payments. Some of them are as follows:

• You will be in control of your finances.

• You will know how much of your payments are towards principal and how much towards interest.

• You will have the knowledge as to what accounts for your monthly mortgage bill.

• You can catch the occasional errors made during billing by the mortgage companies.

• You will know whether or not you have a good deal on your mortgage.

• You can reduce your mortgage cost by refinancing your mortgage if your current mortgage is charging very high.

Article Source: http://EzineArticles.com/5416241

How to Get Lowest Interest Rates on Your Home Mortgage

Though selling and buying properties is very ordinary, at least for those who are in realty sector, it is still a tedious and time consuming process. This happens especially if you decide to do it on your own. It is good if you have made up your mind to buy a home for your family and are ready to apply for a home mortgage in a bank. Before you do so, there are some important points to consider. It is true that getting a home loan today is much easier in comparison to what the situation was a few decades ago, it is still a once in a lifetime decision as you do not buy a property every few years, do you? It is therefore necessary to do your homework before taking a plunge.

First of all, it is imperative to know the interest rates prevailing in the home mortgage sector. Then, depending upon your requirements, you can easily calculate the EMI that you have to pay to the bank that grants a home loan to you. Now, this interest rate is dependent upon many factors, most importantly upon your credit score.

If you have a decent score, you can even negotiate with the bank to lower the interest rate in your case. However, if you have a low score, do not make a mistake of presenting your home loan application to any bank manager. This is because loan advance managers judge your credit worthiness solely on the basis of your credit score. If your loan application is rejected several times, it becomes progressively difficult for you to secure a home mortgage. This is where experienced brokers working in the field of home loans come into play.

You could actually find that there are dozens of companies working in the field of home loans and refinance. Remember, you are important to them as much as they are to you. Thus, it makes sense to compare the features of the service that these companies are providing. No, you do not need to go physically to the offices of each company. Instead, you can compare the companies from your own home by logging on to the websites of these companies. Just type the amount of money you need and the Emi Calculator Home Loan that you can realistically pay to the lender. Depending young your details, you can get the rates of interest at which these companies can get you home mortgage.

The biggest advantage that these companies have is that they can match your requirements with the best available home loan product in the market. This is something that you cannot hope to achieve on your own. You not only save a huge amount of money in terms of lower rates of interest, you also save on your valuable time and effort. Just make sure that there is no fine print behind the attractive features of the company whose services you are hiring to secure your home mortgage.

[Source: http://ezinearticles.com/?How-to-Get-Lowest-Interest-Rates-on-Your-Home-Mortgage&id=6156792]

Knowing Your Monthly Loan Payment through an Emi calculator housing loan

A dream is fulfilled when we own a house. Buying a home can be a little difficult with no economical guidance. However one needs to possess adequate funds to buy houses or rent them in any decent locality. Unfortunately, there can be times where there is a shortage of money that can act as a roadblock towards achieving your long lasting dream. That is when a home loan helps a person out. They provide people with the finance needed to build a house for you and your family. Their main aim is to see you smile and live happily under one roof.

Many banks today offer Emi calculator housing loan or mortgage loans at their own interest rates. After you avail a loan, there is a fixed interest rate designated which will not change throughout the duration of the loan. Even if the interest rate changes, it will not change the rates of the loan you have undertaken. Monthly payments also called as EMI's (Equated Monthly Installments) are needed to be made along with the interest rate. It is a fixed amount made by the borrower to the bank or financial institution every month. They are used to pay off both interest and the principal amount every month throughout the loan tenure. At the end of the payment schedule, you have to pay the unpaid amount in a lump sum. There are components that prove essential for calculating the EMI through a Home loan calculator.

1. Type of the Property: It is important to know the type of property for which one is seeking for a loan. A home loan can be for a property that is a ready to move in property, under construction, self-construction or for home improvement. Different types of loan are available for each of them.

2. Loan Term: Various banks and financial institutions provide with their own tenure and repayment period. They can go up to 25 years. EMI's are calculated after knowing the term of the loan.

3. Rates of Interest: There are two types of interest rates to choose from. Fixed rates are the ones that don't change throughout the tenure of the loan. In floating rates though, the rate keeps on changing depending upon the market conditions. It is important to choose the right one for you.

An Emi calculator housing loan provides a person with the convenience to know what the EMI amount will be if a loan is availed. They are available on the website of the banks and financial corporations. With each one of these banking firms offering their own interest rates and home loan schemes, it can be difficult for a person to choose the right one. The EMI calculator can help in this case by calculating the exact amount to be paid monthly. For example, a person avails a loan worth Rs.500, 000 for duration of 4 years and the bank has an interest rate of 7%. The calculator would show a result with an EMI of Rs.11, 973. This way one can know whether it would be feasible for him/her to pay the amount.

A Emi calculator housing loan can always help at times of financial shortage. The EMI calculator is a great way to know the money to be paid at a regular basis. This is a great instrument for EMI calculation and often comes in handy.

Article Source: http://homeloanemicalculator.tumblr.com/post/149317376185/knowing-your-monthly-loan-payment-through-an-emi

Home Loans - Possible Hurdles and Solutions

A Home Loan is a long-term legal contract between a customer (home loan seeker) and the bank. Hence it is very important for a home loan seeker to be fully aware of all the legal terms and conditions that involve in the processing of a home loan.

A home-loan seeker may face several difficulties including certain legal issues in the processing of a home loan. He/she has to be very careful and must have a good knowledge of all the legal aspects pertaining to home loan processing. The following tips will greatly help you to educate yourselves in this regard and obtain a hassle-free home loan.

1.         Through the Home Emi Calculator Home loans process starts with documentation. Documents pertaining to a property are of great value and play a key role in completing the process. So, a home loan through

seeker must be very careful when submitting the documents to the bank. Never submit any fake or unclear documents that may create confusion or misguide the banks; banks have every right to take legal action against those who misguide them.

2.         The details that you furnish in the application form should not include any discrepancy. Banks make a careful study into these details, and if they find discrepancy, your application is certain to be rejected without any prior notice.

3.         Retain all your receipts of the amount paid towards the credit card bills as banks may ask for the receipts of the payments once the details are found in CIBIL.

4.         A panel of advocates will scrutinize the documents submitted by the home loan seeker. They will obtain the search reports from the concerned sub-registrar office to find out the details of deeds and the vendors pertaining to that specific property. If they find any discrepancy in the documents, banks will ask the customer or vendor for clarification or for other supporting documents.

5.         Property that the home loan seeker intends to acquire will be evaluated by technical values, and if any find any deviations in the property, customer has to submit additional documents to support the deviations.

6.         Upon completion of the entire process, vendor has to verify all his original documents with the bank official before disbursement of the loan, and the customer has to submit latest Encumbrance Certificate (EC) recording all transactions of the property in original.

7.         Customer (home loan seeker) has to sign all the legal documents and the Home Loan Agreements in regard to the disbursement of the loan, and the property will be hypothecated to the bank till he/she repays the entire loan amount subsequent to the registration of the property. Customers are advised to carefully read the agreement copy before signing it.

8.         If the customer fails to repay the loan, banks may appoint agents to collect the easy monthly installments (EMIs) from the customer, and he/she has to co-operate with them.

9.         If the customer gets defaulted, bank can seize the property to recover the loan amount; and once this happens he/she will be added into the defaulters list of the CIBIL (Credit Information Bureau of India Ltd).

Finally, it is advisable to take as less loan amount as possible so as to save the interest paid on the loan. Also, be punctual in repaying the loans to maintain a good credit history.

[Source: http://ezinearticles.com/?Home-Loans---Possible-Hurdles-and-Solutions&id=1854622]

Calculating Loan Installments with an Property loan emi calculator

Whether you apply for a car loan, home loan or a personal loan, you have to pay an Equated Monthly Installment. To calculate the monthly payments accurately, people use an EMI calculator. Soon after you decide to apply for a loan, you need to research on available types of loans in the market. Today, financial institutions and banks in India offer all different kinds of loans to fulfill different property buying needs of the residents. As you avail advance cash from the banks to buy your dream house or car, it is clear that you have to pay the borrowed money back. Further, you need to pay some interest along with the principal loan amount to the banks. The loan is to be paid back in equal monthly installments. An EMI calculator makes it easy for the loan applicants to calculate the monthly installments and schedule the payments.

Equated Monthly property loan emi calculator, a monthly amount is to be paid by the loan borrower to the financial institution or the bank from where the loan is taken. EMI is the combination of principal amount of the loan and the interest and is paid until the full loan amount is cleared. The interest and total principal amount is divided by tenure and this sum is generally paid monthly. Normally, the interest and principal amount doesn't change but its proportion might change as times. With every consecutive payment, the loan borrower pays more towards principal amount and less as interest.

Using property loan emi calculator

With an online EMI calculator, the calculations have been further simplified for the loan borrowers. Every bank or the financial institution offers top quality EMI calculators to assist the borrowers to calculate equal monthly installments. There are many benefits of using an online EMI tool.

• With graphical charts and easy to understand graphs, the online EMI calculators assists the loan borrowers to easily calculate the monthly installments.

• Making accurate calculations is possible with a sophisticated online calculator.

• An online calculator assists you to calculate car loan, home loan or a personal loan instantly.

• It is easy to determine monthly payments against interest and principal amount on the loans. With this, you can judge how suitable and affordable a loan is for you.

• Use the calculators to avail quick loan quotes as per the EMI

Calculating the equated monthly installment is simple through an EMI calculator. Simply enter details like rate of interest, period of loan and the principal amount to make instant, accurate calculations. Along with the basic monthly installments, you can calculate the total payable interest and total amount along with interest. The EMI will differ as per fixed and variable rate of interest. The Equated Monthly Installment that you attain gives an idea of personal financial commitments for the future. For example, you can find out whether you can afford personal financial commitments during the period of the loan. With this, you can plan personal finances better and take efforts to fulfill life's requirements.

Article Source: http://EzineArticles.com/7271974

Determine Your Ability to Pay a Loan with EMI to Income Ratio

Everyone is capable of forming a budget, of how much to should spend on home, car, retirement funds, insurances, daily expenses, and so on, and how much they should save every month. Budgeting is crucial for sustaining yourself in the long run, especially if you have something like a home loan to factor in.

You may have created your own budget and you may good at it, but did you ever wonder what would be the ideal budget for you? The 50/30/20 rule coined by Harvard bankruptcy expert Elizabeth Warren and her daughter,

Calculate Your After-Tax Income

Making a budget is all about splitting and allocating your monthly income among other commitments and expenses. Before you do anything, you need to know how much money you are really dealing with. Your monthly salary can be misleading as there will be a tax cut. Therefore, you'll need to calculate through Emi Calculator Housing Loan how much money you will have in hand to play around with after government taxes are deducted. Once that is taken care of, you will have to add back any other deductions that were made on your monthly income like health care, retirement plan charges and so on.

Limit Your Needs to 50 Percent

Needs are different from wants. You've heard this so many times and you've even said this yourself. Now it's time to look at all of your monthly expenses and pick out which ones were made for your needs. These will include cost of housing and utilities, groceries, health and car insurances. The idea here is to sum them all up, and make sure that they do not cost you more than 50 percent of your after-tax income.

If you have problems in differentiating which expense is a need and which is a want, then use this rule: If the payment has a major effect on your quality of life such as electricity or medicine, then it is a need. If not paying for something would cause minor inconveniences to you, like the cable bill, then that's a want.

Limit Your Wants to 30 Percent

Now you know what wants are. These wants are important for living a happy life and for positively motivating yourself to earn more. According to the 50/30/20 rule, 30 percent of your after-tax income should be spent on all of your desires.

Spend 20 Percent on Savings and Debt Repayments

The remaining 20 percent should be spent on repaying debts that you have or save it for your retirement or emergency account. When you are placing debts in this category such are credit card payment, categorize the minimum payment of your credit card payment as a need.

[Source: http://ezinearticles.com/?Determine-Your-Ability-to-Pay-a-Loan-With-EMI-to-Income-Ratio&id=8519504]

How Home Loan Calculator Can Make Your Life Easier

Generally, people do not want to deal with the math of loans or mortgage. This is a typical attitude because we know that these calculated figures are important but hard to understand. Worry no more because most mortgage and loan websites give you access to home loans calculator. The 80% of home buyers who logged into these online calculators attests at how easy it is to use for your loans needs.

Of course, different loans expect different figure inputs or variables. Luckily, most home loans calculators are built almost similar in features. Usually, they have a form for you to fill out with information. You need to have initial loan shopping to have the necessary details needed in calculation so you can get the best loan deal. Also it is recommended to use Home loan calculator that are targeted to your region. For example if you live in a state, then find online loan calculators that are located in your area. This can prevent confusion because these calculators have already been subjected to other factors in loan processing as it varies from place to place.

This online Home loan calculator tool can greatly help you in the math of your product loans. Loans calculator makes it easier to use them for the following computations:

Monthly Payments Home loan calculator can compute just how much you need to pay for your mortgage payments. You just have to enter the loan amount, the length of your mortgage, starting date, and interest rate so that the calculator would give you the monthly payment you have to pay. When you click "Submit" the next page shown to you will often show a summary of the details you gave and the result of the calculation. Some sites even offer types of loans that fit your financial profile or loan expectations.

Amortization Schedule. By entering your loan details of the amount borrowed, the term, and the annual rate of interest you can get your amortization schedule from the loan calculator.

Bi-weekly Mortgage. Some borrowers prefer to pay bi-weekly mortgage to lessen their interest and shorten their recovery period. Loan calculators can also compute the amount of your bi-weekly mortgage and you just have to input the following details: balance of the loan, the annual interest rate and the amortization period.

Scenarios. By entering different details in the blank form of the calculator, you can create possible scenarios and mode of your loan terms. This can help you in determining the alternative options that you can avail in loans.

Missing variable. Home loans calculator can also give you a missing detail piece of your product loans just in case a lack of information has you wondering about other variables in the loan calculation.

This online loan tool device has helped a lot of people in determining the best loans that they can have or that are available in the market. Most especially they can be tools to better inform the borrowers of what they are looking for - the best loans for their homes.

Article Source: http://blogs.rediff.com/homeloanemicalculator/2016/08/18/how-home-loan-calculator-can-make-your-life-easier/

What Does My Emi Consist Of?

When you apply for a loan irrespective of whether it is a personal loan, home loan or car loan, the second most important (the first being the rate of interest) aspect you should consider is your monthly installment. It is called equated monthly installment since it is the same amount you will have to pay every month until you repay your loan. This system is quite hassle free, because you have to contribute only what you can afford, and not use up your entire savings or income towards repaying your loan.

Your equated monthly installment or emi is composed of two main components:

Principal amount

Interest Rate

Before we try to understand how this works, let us familiarize ourselves with some of the commonly used terms in relation to emi.

- Principal amount: the original value of the borrowed amount.

- Interest Rate: an annually charged rate by the bank

- Tenure: The duration within which the loan needs to be repaid.

- Processing Fee: a small percentage of your loan amount (less than 3%) which is towards the bank's efforts for processing the loan application.

In the initial period of repayment, your interest will constitute a major portion of your emi whereas towards the end of your loan tenure, your interest will count towards zero and your emi will majorly consist of the principal amount.

For instance, if you are borrowing a personal loan of 5 lakh value, for tenure of 3 years at an interest rate of 15%, your emi will be 17,333. In the first month, you will pay 11,083 as principal and 6250 as interest. Similarly, towards the end of the tenure, you will be paying 17,119 as principal and 214 towards interest.

The difference between flat and diminishing rates

Now, you would have used an emi calculator to get an approximate estimate about the value of emi payable every month. This is usually a flat rate of interest i.e. the rate of interest is not going to change over the tenure; naturally your emi will also stay the same for each month.

However, if you have chosen a diminishing rate scheme, then this means that your interest rate will be calculated based on the current loan outstanding at a particular point during the tenure. Naturally, once the interest reduces, so will your emi. In fact, a diminishing rate of interest gives more avenues to save up on exorbitant interest charges.

If you have taken a housing loan, then you would have come across another term called floating rate, this will change depending on the market, it is not necessary that there should be an increase all the time; there are also chances of the interest rate reducing. Keep a window of 1% to 3% variation from the current rate. When you take this into account and calculate your emi, you will be in a better position to get an overall idea of how much would you be required to pay now, and how much you might have to pay should there be a change.

Apart from the change in interest rates, when you avail part-payment or pre-closure facilities you may have to pay a separate charge for the same. You may also include these charges when you use the emi calculator.

[Source: http://ezinearticles.com/?What-Does-My-Emi-Consist-Of?&id=8229026]

Banking for NRIs: It's All About Ease

 In a globalized, networked world, where business and commerce has moved from the traditional 8 hour work day, geographies and boundaries have dissolved in the face of technologies. Post liberalization, India has moved on to a less stringent exchange regime and this has made it easier for the NRIs (Non Resident Indians) to remit funds back home.

Every year, Indians living abroad use 3 types of NRI accounts to transfer funds. It's believed that remittances from NRI's abroad to India in 2010-2011 were to the tune of 55 billion US dollars.

NRI's can operate three kinds of accounts in India. All the major Indian banks, both public sector and private offer these accounts to their customers. Online money transfer from these accounts has drastically reduced the time taken for funds to be transferred to India.

Non Resident External accounts: NRE

· Funds In these accounts are held in Rupees

· NRIs can open these accounts

· Funds from abroad can be deposited in this account

· This type of account can be held jointly

· Funds in this account can be remitted to any country without requiring prior permission from the RBI.

· Nominations can be made for this type of accounts

· The interest earned on income is not subject to income tax in India.

Non Resident Ordinary accounts: NRO

· This account can be opened by an NRI or even a resident before becoming an NRI

· NRO accounts can only contain funds received in India

· The funds cannot be remitted abroad of to another NRE account

· NRO accounts can be held jointly by a resident and an NRI

· Interest earned on deposits in an NRO account is taxable as per prevailing rates in India

Non-Resident Foreign Currency Account: FCNR

This allows NRIs/PIOs to invest in deposits in India, in foreign currency. The idea is to protect the NRIs from fluctuations in the exchange rate. Currently FCNR deposits can be maintained in 6 currencies.

· US Dollars $

· Euros €

· British Pounds £

· Australian Dollars

· Canadian Dollars

· Japanese Yen ¥

FCNR accounts are an attractive way for NRIs to get a good rate of interest on their deposits.

· They can only be opened by NRIs

· The term is between 1-5 years

· These accounts can be held jointly

· Nomination facility is available

· Home Loan India can be availed against these deposits; however these loans are restricted in their use and amounts, by the law.

· The interest earned on the deposits is not taxable in India.

· The principal deposit is not taxed as Wealth Tax in India

· An overdraft of upto 90% of the deposit or Rs 1 crore, whichever is more, is generally given to a FCNR account.

[Source: http://ezinearticles.com/?Banking-for-NRIs:-Its-All-About-Ease&id=6899594]

Choosing an Online Home Loan Calculator

As the adage goes, something that cannot be measured cannot be improved. This fact is inclusive of most things in life including home loans. If you're looking to live a debt free life, first make sure you calculate how much you can afford to spend. A home loan calculator is a great tool that'll help you get an idea of the monthly and yearly payment breakdowns. The calculator allows you to assess your mortgage payment options.

While some provide a simple calculation of the monthly spending that you can afford, after you key in the interest rate and the other expenses, there are some others that are elaborate and help you calculate several things. For example, if you'd like to know the maximum housing loan amount based on the annual income and the ability to service the loan, choose from a home loan calculator that determines the affordability of your loan.

All that you've got to enter is the monthly salary, the start interest rate, the loan term period and the maximum percentage of income that you can afford to spend, and you have a calculator that tells you the maximum loan amount that you can ask, and the maximum monthly mortgage payment that you can make.

You can also find out how susceptible you are to changes in interest rates in the market. Enter the principal amount, interest rate variation and the Loan for Home period, and you can know how changes in the interest rate can affect your monthly expenditures. And if you're an investor, you can look at a home loan calculator that gives you the potential yield from your investment.

Depending on the amount that you can afford, or the interest rate or the term period that's best for you, you can choose from a loan provider. And if you've already availed a Loan for Home , the home loan calculator can help you determine the monthly income that's need to stay afloat and avoid a foreclosure. There are several variants of the calculator, make sure that you are in tune with the method of calculation with the loan provider.

Rather than having to make complex calculations, where you often lose track of what you were calculating in the first place, or ask for help from your finance consultant, it's best to use a home loan calculator that can do all the calculation for you. You end up saving time, and energy using these calculators that can easily perform the most complex of calculations. But choose from a good website, rather than visiting the first site that's thrown up on the search result.

[Source: http://ezinearticles.com/?Choosing-an-Online-Home-Loan-Calculator&id=6430000]

Repay the Home Loan without Any Prepayment Penalty

The last decade has witnessed an unprecedented growth trend due to the development of organized retail and IT sector, expansion of large corporate houses to the upcoming metros and state capitals and the increased disposable income in the hands of Indian youth. Owning a home is no longer a after 40 affair. The increasing trend among the Indian youth is to own a home in the early thirties. The sky rocketing price of real estate is also fueling the scenario. Real estate is no longer associated with the mere residence purpose, rather treated as a smart investment option.

However with the rising interest rates and mounting inflation the home loan customers are little bit annoyed. To counter this, banks are beginning to encourage them to partly prepay their loans without any penalty or a decreased penalty. Earlier all the banks in the home loan segment were doing with prepayment penalty.

The redemption of early payment penalty has come up with the increased Repo rate of the RBI. Repo is the rate at which the central bank lends money to bank in the banking system. The central bank has also increased the cash reserve ratio or the CRR. The cash reserve ratio is the percentage of deposits banks must keep with the apex bank. as the CRR and the Repo rate has been increased, the banks were bound to increase the home loan rate and as a consequent result through Housing Loan Calculator  home loan EMI increased. Most of the Indian banks raised their lending rates 50 basis points to 100 basis points. In such an expensive credit situation, in order to give respite to the customers the banks are looking at aggressively encouraging part-prepayment. The tight liquidity conditions and the high cost of funds will be somehow countered by this facility.

The penalty free prepayment facility will help banks to access cheap funds from consumers and this fund can be redeployed to high interest earning segments like personal loan plans and corporate loan plans. Simply, the customer can make repayment of 14 years if the loan plan is of 15 years.

The prepayment penalty of home loan was of 2-3 per cent on the amount paid (over and above the cap). The banks used to levy such penalty because the lose out on the interest income. Since the banks are encouraging the customers to prepay the loan amount due to the hike in interest rate, they are avoiding the penalty for any early payment. According to the Industry estimate, 15 -20 per cent that customers will repay without any penalty.

However the waiver of penalty is not followed by the banks without any discrimination. Some of the Public sector banks are considering the penalty waiver on a case-to-case basis when customers prepay to keep home loan EMI and tenure unchanged. When the customer has taken another loan to prepay the home loan, the banks charge him a fee and it is treated as a source of fund generation for the banks.

[Source: http://ezinearticles.com/?Repay-the-Home-Loan-Without-Any-Prepayment-Penalty&id=1308519]

Home Loan Calculator, Advice, and Background

More and more people who have never owned homes before are starting to look into buying their very own, owing to a trending significant drop in interest rates. But before you go out and look for that dream home you've always wanted, you'll need to learn a lot about what to expect and the processes you would inevitably undergo. Indeed, such a big decision entails that you at least know what you're going to be delving into; and the more you know, the less complicated the procedures will be. If you are interested in getting a home loan, you can find guides, advice, information, and even a home loan calculator. Among the pieces of home loan wisdom you can garner from the site, here are a few you should know beforehand:

Home loan jargon can become really technical, so you should learn it. Since the home loan market has several various mortgage plans, each having unique features and advantages, basic jargon and technicalities like fixed and adjustable mortgage rate, FHA and VA mortgage, and others will be used quite often and in different perspectives. It would only be prudent to familiarize yourself with home loan jargon 101 as well as standard loan math-like how your mortgage rates would impact your income. Knowing about other stuff like PMI and points would also be an added advantage.

After familiarizing yourself with basics, the next thing to keep in mind is wisely choosing a lender. Only work with a trusted and reliable lender whose reputation can be confirmed from many sources. Of course hand in hand with this knows just how much of a loan you can afford; here's where a home loan calculator comes in handy. Use one to be sure of the amount you are comfortable with, and do include taxes and insurance into calculations. And a standard tip would be to make a high down payment because this would make for reduced mortgage repayments in the future.

After deciding on the lender and the amount, beware lines of credit. Do not open accounts for credit cards or the like. Opening one would negatively impact your credit history and would thus likewise negatively affect the loan type and interest rate you would be allocated. Plus, credit cards are major temptations that could get you deep in debt even without a home loan to think about anyway, so better do without it. And in the same vein, avoid closing active accounts as they help maintain your current (presumably) good credit standing.

After all this is taken into consideration, the last thing you can do to ensure a relatively easy home loan process and repayment is to not change jobs or worse, quit your job in between repayments. This is true before applying for a loan and during paying it back. A steady and solid employment history is always favorable, as in fact lenders would prefer that you've been working for the same company for at least two years before applying for a loan. Though of course this is just a preference, not a requirement.

Article Source: http://blogs.rediff.com/homeloanemicalculator/2016/08/09/home-loan-calculator/

What You Should Know About Your Housing Loan

When there is an increase in the Prime Lending Rate (PLR), the interest rate on your loan will also go up, and your repayment would be higher. However, in most cases, financial institutions would allow you to pay the fixed amount of monthly repayment (EMI) throughout the loan tenure and would make any adjustment caused by the variation in interest rate by increasing or shortening the loan tenure, as the case maybe. Also, do note that the PLR will soon be replaced by the Base Rate (BR) from July 2010 onwards.

Owning a piece of land, a house or a property is a lifetime dream for every individual. Maslow's law of hierarchy indicates such a dream as well. Taking a home loan nowadays has become much simpler. Each year the budget regulations seem to lean towards the housing sector and construction sector in terms of generosity! There are many home loan providers in the market to make your dream come true. However, before you opt to take a home loan, you need to consider certain factors related to the property that you are interested in buying and also understand the features offered by a home loan provider.

Choosing Your Financial Institution When you shop for an emi calculator housing loan it’s good to research your financial institution well before opting to go with them. Remember that when you take up a housing loan, you will be dealing with the lending institution you choose on a regular basis for a long period of time. Therefore, you should also consider factors other than just interest rates. Some of these are: How professional is the financial institution in dealing with customers? Does it offer quality service in terms of efficiency and reliability? What are the available loan packages and which package suits you best? What are the various charges involved?

Assessing your loan repayment capacity You should ensure that your monthly emi calculator housing loan instalment repayment (EMI) should not be more than around 40-50% of your gross monthly household income. If you have savings or fixed deposits, they can be used to support your loan application as financial institutions may take them into account in evaluating your eligibility. Different financial institutions have different criteria in calculating the repayment capacity. In the case of a floating rate loan, you should also note that your loan tenure or (if you so choose) your monthly repayment may increase substantially when interest rates go up.

When there is an increase in the Prime Lending Rate (PLR), the interest rate on your loan will also go up, and your repayment would be higher. However, in most cases, financial institutions would allow you to pay the fixed amount of monthly repayment (EMI) throughout the emi calculator housing loan tenure and would make any adjustment caused by the variation in interest rate by increasing or shortening the loan tenure, as the case maybe. Also, do note that the PLR will soon be replaced by the Base Rate (BR) from July 2010 onwards.

Article source: http://ezinearticles.com/?What-You-Should-Know-About-Your-Housing-Loan&id=5919488

Home Loans and the Meaning of EMI

What is EMI? This is a very common term that is being used very frequently nowadays by everyone. People converse about this term and usually this is used regarding discussions and taking of home loans. The meaning of EMI is "Easy Money Installments". More often this term is used regarding home loans but it can mean about any type of loans. 

Business loans, car loans, mortgage loans, second home loans and just about anything under the sun that can be taken on loan! The loan repayment schedule shows the amount that is termed as the EMI.

Loan for a home can be taken from private lender or government and personal home loan lenders. The total amount of EMI varies according to the loan amount and also the rate of property per square feet in that particular area. It is understood that the company or lender giving loan needs to be assured about the repayment of the loan.

The period for which the loan has to be repaid is also calculated. Monthly installments are to be paid by the individual as process of repayment of home loans. "Easy" installments means a comfortable amount is calculated according to the repayment capacity of the borrower of the loan. This depends upon the individual's financial status, his profession and whether he is going in for fixed interest loan or flexible interest loan for the home.

Usually Emi Calculator Home Loan is according to monthly payments but sometimes they may also be annual that is once in a year. This comes to a bigger amount but it is adjusted according to the individual's professions and financial standing regarding repayment. Many people get annual checks of salary or property rents or investment returns either in a year or in four months that is quarterly. So they can go in for a home loan and come to an understanding regarding EMI's and the repayment of the loan according to their convenience.

[Source: http://ezinearticles.com/?Home-Loans-and-The-Meaning-of-EMI&id=5412994]