Home Loan EMI Calculator

While planning to buy a house, an essential factor to take in to account is the amount of loan to be availed. After deciding the loan amount, another important consideration is the tenure of the loan. The third important factor is the rate of interest offered. These three important aspects decide the Equated Monthly Instalment (EMI).

An EMI is the amount of money you pay every month towards repaying your outstanding loan. With the EMI facility, repayments become comfortable as you can pay your instalment every month.

• But before you avail of a home loan, as a prudent loan planning exercise, always assess how much the EMI will be. After all, availing a home loan is an important financial decision.
• The EMI (or Equated Monthly Instalment) of your loan consists of the principal portion and the interest. Therefore, EMI = principal amount + interest paid.
• The EMI, usually, remains fixed for the entire tenure of your loan, and it is to be repaid over the tenure of the mortgage every month. During the initial years of your loan tenure, you pay more towards interest. Slowly, when you repay the loan, a higher proportion is adjusted towards the principal component. The EMIs are calculated on a reducing balance method, which works in your favour as a borrower.

EMI is made of three components – interest, principal amount, and tenure.

A Home Loan EMI Calculator is an online tool for computing the EMI of a home loan. Paying off home loans, along with the accrued interest within the stipulated period, requires precise financial planning, and it is essential to assess the repayment capability before opting for the loan to avoid any financial mess.

Based on a few details about the home loan, the calculator gives an estimated amount of the EMI that needs to be paid.

The EMI is paid to the lender until the loan is fully repaid. Calculating the EMI in advance helps to know the amount of money to be kept aside every month. Also, it assists you in managing your finances better. The advantages of knowing your home loan EMI in advance also include:

• Help in understanding loan affordability
• Help in deciding the loan amount
• Assist in planning out loan repayment
• Help in planning repayment

Shubham Housing Development Finance’s Home Loan EMI calculator gives you a clear understanding of the estimated amount that you will have to pay towards your Home Loan EMI. It helps you to make an informed decision about the outflow towards the housing loan every month in assessing the own contribution requirements and cost of the property. Therefore knowing the EMI is essential and calculating the EMI helps you to plan your monthly budget and makes your home buying journey better.

A home loan amortization schedule is the table or record which details all the periodic payments on your loan. This is generated through an amortization calculator.

Amortization is the procedure of repaying a loan through regular payments over a specified period. An amortization schedule is the total tally of loan payments showing the amount of interest and principal contained in each payment until the loan is repaid in full. You shall receive your amortisation schedule once your loan has been disbursed

Part-prepayment brings down the principal amount, which results in lower EMI amounts overall.

At Shubham, we do not charge any part-prepayment penalty. That means that you can pay back your loan whenever you have excess funds.

There are many advantages of using the EMI calculation tool provided by Shubham Housing Development Finance, and it majorly includes the following benefits:

• Secure processing: You need to enter the principal amount, interest rate, and tenure. No complicated calculations or difficult mathematics is involved. The actual computation will be taken care of by the calculator.
• Get the breakup of the finance charges: This tool helps you understand the financial expenses such as total interest payable associated with your EMI. Since banks and financial institutes present them as a percentage of the loan amount, knowing the actual value can help understand the real cost of the loan.
• Comparing loan offers: You can use the loan calculator to compare loan proposals from numerous banks. The results will show you the total amount you need to pay along with respective EMIs. It will help you narrow down on the most feasible option.
• Choosing the right tenure: Knowing your EMI also helps you select the right tenure of the loan. If you can afford to pay a higher EMI, you can choose a shorter loan period and pay off your loan at the earliest. Or else, you can pay a more comfortable EMI and extend your loan period.
• Helps in authenticating information: To reduce your home loan EMI, the foremost thing you should do is to choose a lender which offers home loan at a lower rate of interest. This is because lenders may also include certain other charges in your EMI calculation.
• Helps with loan management: Sometimes, while paying your EMIs, you may have some extra funds to make prepayments. If you want to revisit the financials and see how advances can help to pay off the loan before the term ends, the home loan EMI calculator can help you do that.

A housing loan EMI is generally a fixed amount. But there are certain circumstances under which the loan can change. Let’s look at some of these points below:

• Partly Disbursed Loan: In the case of partly disbursed loans, you will only pay for the amount that is disbursed. This will happen in the case of tranche disbursements.
• Loan Prepayment: Prepayments impact your EMIs as well. You can either choose to reduce the EMI for the same loan to keep the EMIs constant. The latter is more beneficial since your tenure will reduce.
• A rise in the floating interest rate: Most loan offerings offer a floating rate of interest. If the floating rate increases, the lender will generally increase the loan tenure while keeping your EMI the same.