Home loan is a secured form of
loan that is offered against the security of house/property which is funded by
the bank, the property could be a personal property or a commercial one. It’s a
loan taken by borrower from the bank issued against the property / security
intended to be bought by the borrower a conditional ownership over the
property. These are attractive and popular means of buying a dream house for
most people.
Every day millions of people
apply for home loans with leading government or private banks and finance
companies in India. Today, it has become the prime source of finance aid to
people who work hard and strive to build their home but struggle due to high
inflation costs, lower salary or other responsibilities towards the family.
While taking a loan the primary
concern would be the interest rate applicable and EMI for home loan. These are
the prime source for deciding your loan affordability. Some private sector
banks or finance companies are offering loans at an interest rate as low as 9
to 10% and come under fixed or floating rate basis concept. Under fixed rate
loan the ROI remains constant throughout the loan period, while in floating
rate loans the ROI is linked to market conditions and may change periodically.
They could be linked to the base rate, inflation, or other parameters, each
bank selects its own methodology to fix this base rate. These rates have to be
declared by the bank each quarter. Some leading private sector banks offer
loans in the form of adjustable rate of interest loan, Trufixed loan (2 to 3
year fixed rate variant) or Trufixed loan (10-Year Fixed Rate Variant).
Each bank has its own pattern of
calculating the Property loan emi
calculator and it vary based on the customer’s credit profile. The interest rates depend on various factors
like availability of money in the market (liquidity), inflation and monetary
policies. They are categorized in two ways fixed rate or a floating rate. For
fixed rate loans, the ROI remains constant throughout the loan period, while in
floating rate loans, the ROI is linked to market activities. Each bank selects
its own methodology to fix this base rate. These rates have to be declared by
the bank each quarter.
In India, generally banks or
finance companies offer lenders loan amount upto maximum 80-85% (below 20lakh)
of the agreement value of the house. Incase of home loan for resale flats, most
lenders get the property valued independently and provide housing loan based on
their value than the cost mentioned in the purchase agreement.
You can repay the loan through
EMIs. Property loan emi calculator could be set for maximum tenure of around 20
to 25 years. Some of the banks provide housing loans even for a tenure
extending upto 25-30 years. The tenure is restricted to the borrower’s and
credit history.
Taking loan means a big decision
of your life. A little bit of mis-calculation can burn a big hole in your
pocket. The decision has to be carefully scrutinized and move ahead. To ease
your mental burden banks and finance companies have come up with easy home loan
interest calculation methods online. Emi
for home loan could be calculated easily with no stress on your brain for
tedious calculation and waste your valuable time.
There is a loan amortization
table that will further break down your monthly EMI into the principal and
interest components and will give you an idea of exactly how much interest you
are paying over the entire period of the loan. Property loan emi calculator
help you estimate the potential savings on your loan amount making it
affordable and easier on your pockets in the near future.
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