Blog #HomeLoanEMICalculator

There are various loans in the markets nowadays which can be seen to be similar but are different. One such loan is a land loan and home loan. Many people might think of these loans to be one and the same but they are different and are available for different purposes. So let us discuss the meaning of these loans. First, let us understand home loans. Home loans are available for properties that are yet to be constructed in future or under construction or for ready properties whereas land loans are taken for buying a landholding or a plot of land for building a house or for mere investment purposes. Now, as there is a lot of advancement in the market. It is implied that people are bound to get caught in the wrong steps during taking these loans as many people don’t know all the details regarding these loans. Different loans involve different requirements and many people get confused in minute details involved in them.

The differences between the two are discussed on the various basis as below:

• Location of property and purpose: Home loans are available for ready properties or property under construction or yet to be constructed whereas land loans are available for the purpose of purchase of a plot of land, investment purposes or the land will be used solely for residential purposes.
  
  
• Tenure of the loan: There is a major difference in the tenure of both types of loans. Home loans are available for a period of a maximum of 30 years whereas land loans are available for a maximum period of 15 years. So, this is a major difference between both these types of loans. And this can be easier with the Home Loan EMI calculator which is provided by most of the banks to calculate their monthly installments so that they can accordingly check their monthly limit to pay.
  
  
• Tax benefits: If you avail of a home loan you can benefit from the tax deductions on both, the principal repayment as well as payment of interest. On the other hand, land loans are not eligible for any form of tax benefits or any kind of deductions but if you construct a plot on that land then surely there are tax deductions but that is only for the loan amount taken against construction. In addition, one should also know that these loans are only availed after the construction process is complete.

These are some of the differences between home loans and land loans along with their meanings. Now, it must be clear to you that even if they seem to be similar they are totally different and are available for completely different purposes. And most people go for availing of home loans.

Now, if we talk about home loans, there are various banks and lenders that offer a variety of schemes when it concerns taking home loans. But one should be sure of the fact that they take it from the bank that offers that home loan on correct terms and conditions and are trustworthy, that they don’t look for only their monetary benefits. One of the banks that is known for its years of service in this line and is quite trusted with is Allahabad Bank home loan. They offer home loans with easy terms and a rate of interest as low as 8.25% and onwards. You can also calculate your monthly installments through the EMI calculator. They keep their processing fees quite transparent. They require basic documents for the verification of the loan such as identity proof, income status, residency proof, passport size photographs etc. One should make sure that they carry the original as well as well photocopied documents so that the document verification process goes smoothly. And if all the processes go fine, you can easily get your loan approved within a short period of time without much hassle and stress.

Read More:- Types Of Home Loan And Its Uses 

Any of the existing loans and the vast liabilities is the factor that continuously determines the home loan eligibility criteria. Whenever you have any of the loans, whether it can be a personal loan or a gold loan, all the banks calculate the repayment capacity based on every month income. Therefore, if any of the loans EMI also take up a considerable portion of every month income, and if you do not have a high score, this would be difficult to get the best of the home loan. Any of the applicant's avail of the home loan at any of the best banks. They would also be required to submit some of the primaries, detailed application form documents work. Nowadays, home loan applications are also made with online mode. Many of the banks also allow you to submit some of the preliminary application forms through online mode. And this is very fast and simple. You can choose any of whatever you have decided, but before avail, you need to check home loan EMI calculator and eligibility criteria; if you are eligible, then you can fill the form.

The substantial loan amounts that all the borrowers can get also depend on CIBIL score, income certificate, or more of the things. You can also check the loan amount that you are also eligible for using the calculator. The home loan minimum and the maximum period is 5 to 30 years; almost all banks provide the same time because the RBI always decides how long you can choose and avail the home loan.

Before you start massive research for a big dream house, one of the essential and vital things you would have to decide is how much fund you wish to avail and require. With some of the very effective high realty rates, those people purchase a home they always help this loan for buying any of the houses. Through this loan, you can or never get the total percentage of loan amounts. The maximum you can only get 80% to 90%, not more than this percentage because this is always the Reserve Bank of India.

If you are deciding any of the locations, it is a huge decision you also have to make. Proper research is always required when you do these things. Because without examination, you should not purchase any of the property. You have to research much about the property. Any of the builders in real estate companies also charge the construction of the house. This loan always has two calculating interest rate methods, whether you choose a static method or a floating rate method.

If you are choosing a fixed interest rate method, then the rate would be decided at the time. Whatever loan you have sanctioned, and remain the same every month; Otherside floating interest rate would be changed according to the market rate price. Mostly, many of the borrowers only opt for fixed interest rates on this home loan as they are also assured of the same rate until the end of the tenure period. However, this can not always be the same. This always depends on the person which method they would like to choose. But before selecting any of the plans, you need to research much about the technique.

Conclusion
Bank of India home loan interest rate charges only 6.75% per annum. The rate would be 7 to 9% between these two numbers. All banks charge interest rates. It depends on you which bank you are taking a secure home loan. If you are choosing another bank, then you have to check the interest rate. If they are charging low, then you can avail home loan in that bank. And some of the other things you also need to check because this would be very helpful for you in future. If the rate would be low, then EMI is also common.

Must Read:-  Unknown Fact about the Home Loan

A home loan, just like any other loan, is provided by banks and NBFCs to generate profits by the lending amount to eligible candidates and earn interest in addition to the principal after the loan duration. A home loan is a long-term debt for the applicants, and they use it to get their own house for themselves and their family.

A home loan provider is the one who provides the terms of the loan that are:

• Type of Interest to be levied.
• The interest rate.
• The tenure of the loan.
• The frequency of payment of EMI.
• The amount of EMI to be paid.
• Foreclosure in the event of prepayment. 
• The processing charges to be paid at the time of loan dispersal.

Applicants are always at a disadvantage against the loan provider; hence all the financial advisers and experts suggest that applicants should gather all the relevant information themselves before applying for a home loan. Nowadays, gathering information has been made very convenient by the internet, which allows us to look up any information. Even a non-specialist can understand financial jargon with the help of the internet. An essential tool to be used to evaluate any home loan offer is a Home Loan EMI Calculator, which is quite helpful for revealing all the aspects of a home loan. An EMI calculator is a program that requires the input of all the factors such as amount requirement, tenure, monthly income, age, etc. It calculates the monthly EMI payable by the applicant and provides information about the terms offered by the bank on the basis of income and other factors of repayment ability of the loan. An EMI calculator uses a basic formula:

E = [P x R x (1+R) ^N] / [(1+R) ^N-1]Here,

• E = EMI amount or the Result 
• P = Principal amount 
• R = Rate of Interest
• N = Time period of the loan.

EMI calculation, though, is a complicated process. It can be done with ease by a computer program such as the EMI calculator. An EMI calculator has some benefits for home loan applicants that can be explained as under:

Simple calculation: To calculate the EMI repayment, all a customer has to do is enter the loan number, rate of interest, loan tenure, and processing fee (if available). The home loan calculator will perform the calculations, and the calculator will also have the EMI number.

Choosing the correct loan tenure: After determining the exact EMI number, a person may choose the appropriate loan tenure. They can either pay a high EMI and select a brief tenure period to pay off the loan fast, or they can deliver a lower EMI and prolong the loan period.

Advantageous for loan management: After making EMI payments, a customer can have any spare funds available to make prepayments. A home loan EMI tracker will make a customer go over their finances again to see if a prepayment can help them pay off the loan before the term expires.

Comparing loan deals: The loan calculator can be used to compare loan offers from various banks. The net cost of the loan, as well as the corresponding EMIs, are shown in the results. This assists the borrower in determining the right choice for them and selecting a loan that meets their particular needs.

Accurate results: It is human to make mistakes, and when a measurement is made manually, a miscalculation can occur without the customer's knowledge, resulting in incorrect results. The findings of an online home loan EMI calculator will never be wrong; all measurements are performed with utmost precision.

After understanding all this, it is a wise choice for applicants to use an EMI calculator before applying for a Home Loan. The websites of all banks have a section of banks have home loan sections available, for example, Home loan at Dena Bank is available on their website, and Dena bank and almost all the other banks have their own online presence with their own home loan EMI calculator algorithms present.

Must Read:- Advantages Of Home Loan