A lot of ground work is already carried out before borrowing a Home Loan. As a borrower, preparing a ground work and proper plan is essential in order to choose the right lender. When it comes to borrowing a Home Loan, a borrower must not shy away from testing every option. A borrower must approach multiple vendors and check on all the available loan deals before deciding on one. When checking out the loan deal, it is essential that not only the interest rate and the loan amount be considered, but other miscellaneous charges and sundry expenses are covered as well.
Availing a Home Loan has become pretty easy these days, thanks to the presence of Non-Banking Financial Companies (NBFCs). They help will you with a Home Loan even if your credit score is below the 750 mark. If you have low credit score than you need to improve credit score which will help to get loan easily. In simple term high credit score help to get home loan lower EMI. However, one thing they cannot help you with is the regular, timely repayments once you have borrowed the Home Loan. Yes, they can make it comfortable for you by providing you flexible options, but when it comes to repaying your Home Loan EMI, your prior planning and prepared ground work will come into play. Conversion from partnership to LLP
Once having borrowed a loan, it is of common knowledge that the major chunk of your salary will be directed towards the repayment of the loan. Thus, it is essential that you do not get carried away when borrowing a Home Loan. Be realistic. Be open to your repayment capabilities and how much you can afford. It is also important to consider that a Home Loan should not be borrowed at the expense of your essential need. Moreover, that is the reason why financial institutions require monthly salary to be 60% higher than the EMI.
Home Loan EMI & Calculator:
A Home Loan EMI depends upon three things – Loan amount, loan tenor and the interest rate. Apart from that, there are two integral components in an EMI. These include principal repayment and interest repayment. Each EMI that you pay goes towards fulfilling these amount. However, the allocation of the payment differs. Initially, more amount will be directed towards the interest than the principal amount. As the Home Loan progresses, the EMIs help to bring down the principal amount.
When it comes to a Home Loan EMI calculation. There are two ways that you can go about it. The manual way in which you can use the Excel Spreadsheet to carry out the EMI calculation. However, you will be required to do it correctly. It takes some time and efforts, and furthermore, not everyone is well-versed with how Excel works. On the contrary, there are some online tools which are available. One of which is the online Home Loan EMI calculator.
The online Home Loan EMI calculato