Housing Loans in India

Making Investment Dreams in Real Estate Possible

Are you seeking a home loan, for the new house that you are planning to purchase? If you are, then your first question would probably be how much of a monthly payment you would have to make. In other words, what would the Equated Monthly Installment (EMI) amount be?

These amounts basically refer to the fixed amount that a home loan buyer pays to the bank on a regular, monthly basis. Many loan seekers are extremely curious about how this amount is actually calculated. Seeking a home loan in today’s times is extremely easy with banks and Non-Financial Banking Companies (NBFC's) offering their services online.

It is easy for people to read about the features and rates of these products and even compare rates offered by different providers on a single platform. With the inflating prices in real estate across the country, affording a house has become almost a distant dream for even the middle class section of the society. Housing loans in India have become an extremely popular financing option for purchasing real estate in the country, whether commercial or for residential purposes.

One can easily use the home loan EMI calculator that is freely available online to find out the EMI for a loan of a specific amount. In order to use this calculator, one needs to know the loan amount, the interest rate and the tenure (in months). The loan amount refers to the amount that you wish to avail for. The tenure refers to the duration (length of time) that the borrower will take to repay the loan amount.

It is always possible to re-calculate the EMI amount, if you think you can afford a higher loan amount. Thus, you always have the flexibility and opportunity to calculate the EMI as per your requirements. However, it is very important to remember that your EMI amount includes both the principal loan amount as well as the interest. The amount of interest that is payable is calculated by keeping in mind the rate of interest and the loan tenure.

So, if your loan tenure is long, then the amount of interest that is payable will be high. On the flip-side, if the loan tenure is short, then the amount of interest that is payable will be low. So to sum it up, a short term loan is cheap, while a long term loan is expensive. Therefore is it always important to use the home loan EMI calculator and compare the rates of home loans offered by different providers before applying for one.