Blog #Home Loan EMI Calculator

As of 2021, Home Loans can be available in banks. These banks offer various low-interest rates, processing fees and tax benefits. These repayment systems are also helpful in banks. These banks provide varied interest rates, and these interest rates range between 7-9 percent. In these home loans, the eligibility criteria is critical. Based on these eligibility criteria, and only you can use these home loans. The home loan amount is also based on eligibility criteria. So eligibility criteria also play a significant role in home loans. The home loan interest rates may go up or down. It depends on the interest rates and the tax benefits. Banks like State Bank of India and HDFC will quickly approve the home loans. So in this way, you can use these home loans interest rates. These interest rates range between 7-9 percent. Home Loan EMI calculator is used in many banks, and by using these home loans calculators, you can calculate your brown home loans calculations. In this way, you can use all these calculations. In this way, you can use all the home loan benefits. 

These home loans can be available in banks. Banks offer varied tax benefits, and these tax benefits range from 1-2 lakhs. So in this way you can use all these tax benefits. In-Home Loans, there are flexible repayment systems. These repayment systems are flexible, and you can use these repayment systems with varied interest rates and use all these interest rates for home loans. So in this way, you can use all these home loans. In-Home Loans, you can avail of various benefits apart from these interest rates. For home improvements, people are using gold loans. Apart from using gold loans, use home loans. 

These home loans can be available in many banks. There are different eligibility criteria in these home loans, and these eligibility criteria are based on home loan amounts and home loan property. So by using these things only, you can get various interest rates. So make sure to use all these interest rates in home loans. SBI Home loan has a market percentage of 34 percent, and this is the first bank for home loans, and it is the best bank for home loans. So in this way, you can use these home loans. 

HDFC Ltd. has a market percentage of 24.13 percent, and in Housing, the market percentage is 05.83 percent, and in ICICI bank, the market percentage is 13.10 percent. So in this way, you can use all these home loans. These home loans have varied interest rates too. The market percentage has various things in the market like interest rates, processing fees, and tax benefits. So in this way, you can use all these home loan benefits. Use these home loans for the construction of your home. Canara Bank home loan has various advantages, and in these banks, the interest rates are too low, and there is no processing fee, and the repayment systems are flexible. These repayment systems are used in various loans. So in this way, you can use all these home loans in banks.

So in these home loans, there are many benefits. As of 2021, taking home loans is very beneficial for home improvement or home construction. There are different eligibility criteria for home loans. So use these home loans for other banks. So use all these foreign banks in home loans. So use all these home loans in banks, and these banks offer various interest rates, and these interest rates range in between 7-9 percent. So in this way, you can use all these interest rates and in-home loans. There are various eligibility criteria, and these eligibility criteria are based on the home loan amount and home loan property. So use all these home loans in banks only. Banks offer varied home loans. This is the best choice for you if you avail loan.

Home loans can be availed without shredding sweat flexibly in numbered days from financiers. But to avail of a home loan, certain factors need to be considered and pondered over before standing before a bank.

Factors Affecting The Eligibility Criteria Of Home Loans

1) Age: Age is a significant factor in the eligibility criteria though anyone between the age of 18 and 75 can avail a loan in most banks and NBFCs, the applicant’s who are at the beginning of their career or an official who is about to retire soon have high eligibility rates as they can pay the amount soon without much hassle.

2) Income: The applicant requires a stable income or profit to become a home loan borrower. Salaried and self-employed individuals are preferred mainly by the banks and NBFCs to avail the loan. Adding an extra member of your family as a co-applicant can enhance your eligibility, as two members are better than one in paying off the debt. The minimum stable money required in their bank account to avail the loan is Rs.25,00 in most banks and NBFCs.

3) Credit score: The CIBIL score or the applicant’s credit score weighs a lot in determining eligibility. A good credit score is one above 750 and has a high chance of getting the loan. In addition, the score takes into consideration your previous loan history, and how you’ve paid your monthly payments and the kinds of loan or debt you’ve borrowed in the past. This helps the lender in assessing your repayment capability.

4) LTV and property details: Loan to Value ratio is the principal amount a bank or NBFC grants for the asset, here the home. Depending on the property’s value, bankers evaluate the money they can sanction as the loan amount. So if the property’s value is high, there is an elevated chance of getting more amount. If the loan is for buying a new house and not a loan against a house, the lenders consider your down payment capacity, and if the applicant can pay 20% or more, the chances of availing of the loan soon are high.

5) Existing debts: if the applicant has loans or debts in his/her name already and has to pay high monthly interest, the bankers hesitate in sanctioning, but if the profit or income is more than enough to cover all your loans, they approve it fast. Therefore the repayment capability of the applicant plays a major role in the approval process.

Factors Influencing The Interest Rate On A Home Loan

The applicant needs to consider the home loan interest rate a huge factor before availing of a loan.

1) Interest type: There are two types majorly in how the applicant can pay a monthly instalment. They are floating and fixed interest rates. Floating interest rate changes each month according to the financial markets, low or high, the applicant doesn’t know. Budget planning is difficult and involves high risk but paying a low interest rate compared to a fixed interest rate each month is possible. In fixed interest rates, the monthly instalment amount is fixed by the NBFC or bank, and it doesn’t vary over time. Therefore, budget planning is possible and involves low risk. A Home Loan EMI calculator on the bank’s official website or NBFC can be used to calculate the interest amount.

2) Loan term: The tenure or loan term is the period of the amount the applicant avails the loan for. It may vary from 5years - 25 years, depending on the bank and NBFC. If the tenure is long, the monthly instalment amount the applicant has to pay each month is low and vice-versa.

3) MCLR rates: Marginal Cost Of Funds Based Lending Rate is the minimum interest rate a bank can lend the loan amount at. According to the tenure, the bank or NBFC fixes a date for the applicant, and the interest rate for that year may vary depending on it. Therefore the MCLR can increase or decrease your interest rate each year and weighs a ton in affecting the monthly instalment amount.  

Also read this: Things To Consider Before And After Home Loan 

It is very important to repay your loan amount on time. Banks give the facility of flexible repayment structure and tenure to the customers. 

Customers have the flexibility to choose repayment structure according to their income and budget. It is very important to plan out your budget and income before making any decision. You can use tools like a home loan EMI calculator that helps you to calculate your monthly EMI along with the interest rate. This will help you to plan out your budget before applying for the loan.

But there is a way where you can decrease your EMI amount completely, and that is by making a down payment. 

What is a down payment?
Down payment is the amount that you pay at the initial stage of the home loan. Banks usually ask for 20% to 30% of the loan amount as a down payment. By making a down payment you can increase the trust between you and your lender. Along with this, it will also provide you with many benefits like lowering the total principal amount. 

Example:- If your home loan is INR 50,00,000 (50 lakhs) and the down payment is 30% (15,00,000) then the remaining amount that you'll have to pay as EMI will be 35,00,000. So the EMI that you would've paid every month at INR 50,00,000 with an interest rate of 8% at a loan tenure of 10 years is INR 58,491 and the interest rate over loan tenure is INR 2,403,854. Whereas the EMI that you'll pay after the down payment is INR 42,650 and the interest rate that will be payable over the loan tenure is INR 1,617,979. 

So from the above calculations, you will save INR 7,85,875 on the interest rate. So you can just imagine the amount that can be saved on EMI after making the down payment. 

It's important to make a down payment for a home loan. It will help you in many ways. Although there are banks like Dena bank home loan or BAJAJ finserv that provide you with home loans at 0% down payment.

Benefits of down payment:- 

1. Interest Rate:- As your loan amount will be decreased after the down payment so the interest rate which will be calculated on the remaining amount will decrease alternatively. So you can say that a down payment helps you to lower your interest amount even more.
   
   
2. Credit score:- If your credit score is low then you should make a high down payment to show your lenders that you are a creditworthy customer. Making a huge down payment will also help you to decrease your interest rate and will also reduce the loan amount alternatively. So it makes it easier to repay your loan amount, which will increase your credit score.
   
   
3. Borrowing power:- A huge down payment can make it easier for you to take another loan at the same time. It will also be easier for you to take an additional loan in the near future. Lenders like it when the borrowers have enough income to meet the monthly expenses and the loan amount. So income can mean a low debt-to-income ratio, which can help you look good in front of your lenders.
   
   
4. Loan amount:- If you pay a huge down payment then your loan amount will alternatively decrease. Which will make it easier for you to repay in smaller instalment. And your EMI amount will also be decreased so you'll have to pay less. For example:- If your home loan is INR 10,00,000 and you make a down payment of 30% (i.e. 3,00,000) so the remaining loan amount that you'll have to pay is INR 7,00,000 which is comparatively less than INR 10,00,000.
   
   

Conclusion:- Making a huge down payment can reduce the burden of repayment of the loan amount. Although a lot of banks give a percentage of down payment that you have to make, borrowers have the flexibility to make more down payment if they want to reduce the loan amount even more.

Must Read-Costs Associated With A Home Loan 

A home loan is the loan type where a person is given a lump sum amount to fund the total amount of the house purchased at credit. In contrast, on the other side of the coin, in another way, the amount will be directly transferred to the account of the construction company which is lending the home. There are different banks and NBFCs which offer the home loan on the online basis. One will not have to travel and reach the office, but there will be the online mode where the application can be made for the home loan on the other side of the coin. 

First of all, one will have to fill the application form on the lender's official website, and the other side in the online mode have to go through these steps as well. There will be different information blanks in the application form, which one will need to follow and fill in accordingly. The details like the name, place, date of birth, earning capacity, family information, employment status will be. The bank will require all this information to examine and come out with the decision of providing the loan or not. home loan EMI calculator will give a better option.All the things will be done in online mode with the help of the internet.

In the next step, there will be the verification of the documents submitted to the bank by sending through the online mode, which has the option of sending without the manual use of the post. First of all, the things will be converted first to the PDF, JPG or the other supported asked format after scanning the documents correctly, which are readily available as an app of the google play store in the android mobile or the app store of the iPhone. 

The documents submitted will be verified by the verification department of the bank or any third party hired for this work. During this stage, one will have to be careful as the wrong or fake document can make one get into legal troubles because of the charges of fraudulent activities to avail the loan. One should have proper attention that the documents submitted are original as most cybercrimes happen in the online market only.

There will be the need for the background check, which the inspection officer will do by visiting the location and for the covid period, there are few norms that can go through some of the online submission and the inspection of the loan interview on the online face to face basis which will clear out many things. Vijaya Bank home loan follows such steps to inspect the customers. There will be a background check in the online way that authenticates the last organisation by voice calling the HR or the employer to know the facts and avail the risk of infection.

There will be the processing fees payment procedure which can also be done online by transferring the fund balance. One will have to be very much strict regarding it. There are millions of online theft happening on an hourly basis. There is the possibility of landing into the fake identical same looking page of the official websites where one will fill the information and the will pay the amount online can lead to the theft of hard-earned money by using the techniques of hacking, which can be a matter of concern for the security of the people or the whole as a country...

Conclusion -

To conclude, we can say that the loan approval process and the loan dispersal will also be done as power the guideline or the feedback through the of the message or the email or a live call from any of the application can be done to execute the last two steps.

Also read this: Home Loan In 2021 

If we look into the matter, the finance world is very vast, which includes an ample number of services, and among that, loans and advances are one of them. There are different kinds of loans available in the market among the different types of the banks and the NBFCs like that of the personal loan, home loan, gold loan and all the other types of the loan. A personal loan is the type of unsecured loan which is mainly availed for the use of the uncertain financial or planned expenses to be met upon.

On the other side of the corner, other drawbacks are also there, which reduces the probability of getting into that option of the loan. If we talk about the gold loan, it also has a unique feature where a person can avail of the fastest and the easy loan to finance some urgent thing coming across the factor. Now the main topic is the home loan, which is a loan and an emotion or can be a chance of achievement if the things are appropriately followed. A home loan is the type of loan in which a person is disbursed a loan amount either in the bank account or in the bank account of the home-making company. The Home Loan EMI Calculator will give a better estimation. Based on these, specific criteria under different banks need to be checked upon so that they come to know whether they are eligible or not.

The first and foremost thing that should be focused on is the application process, where few things should have an alert. If we talk about the credit score, it is a score that states the past credit history, trends, and the ability of how the repayments have been made. While on the other side of the coin, it is said that a good credit score of about 750 will make way for the availing of the loan. If the credit score is not good, then there will be the chances of getting rejected or getting delayed in earning the approval of the home loan.

The application should be appropriately filled with all the required documents there so that there should not be any problem while calculating the different facts for approving the home loan. If all the things are as per the process, then an inspection for the background certification and an interview might be set up by the bank. After this, a sanction letter for the confirmation of the loan and then the disbursal of the loan will happen. There are advantages due to which the home loan is considered and is availed by maximum people.

Going through the whole process of the home loan is a sense of achievement where a person, after all the repayment of the loan and all the legal formalities, the ownership of the loan gets transferred in the name of the customer. This is why after a long period of hard work, a person gets the feeling of achievement where not only the person but also the family and the related ones will live. SBI home loan offers such benefits. Secondly, we can say that there are the chances of capital appreciation where a person actually can see the value of the house property keep on rising year after year, which becomes the asset and in the time of the last resort option can be sold, and the requirement can be filled up.

Conclusion: To conclude, we can say that there are few more advantages are there like that of the low-interest rate, tax benefits which saves a lot under the preview of the income tax act of India, renting a part of the home, tax benefit in case of the principal repayment act as a boon and not only for a small amount but for a big amazon as well.

Also Read:- Rules And Regulations On Home Loans