Purchasing a home has an emotional connection to your life. A home loan can help you achieve it with ease. However, once you take a home loan, the Repayment is to be made with monthly instalments, also known as Equated Monthly Instalment (EMI). Since taking a home loan is a long-term commitment, it is always advisable to have a transparent snapshot before understanding the repayment strategy. You also need to beware that the EMI (Equated Monthly Instalment) consists of the principal loan amount and the interest component applicable on the loan. A home loan EMI calculator helps ease such complex interest and EMI calculations online.
The home loan EMI calculator also functions as a home loan interest calculator. The online home loan EMI calculator as a tool aid in deciding if you can afford the required financial commitment for a home loan in the long run.
To use the online home loan EMI calculator, also called the home loan repayment calculator, you should first estimate the home loan amount you need. Additionally, you should know the approximate EMI amount you can pay out of your monthly income.
Home Loan EMI Calculator Formula
EMI= [P*R*(1+R) ^N] / [(1+R) ^N-1]
In the above formula,
P= principal loan amount
R= rate of interest on loan
N= tenure in number of months
If you need a home loan for buying a house, it is crucial to understand your eligibility for the proposed home loan.
The online home loan EMI calculator estimates the loan amount and your contribution required while taking the home loan. In addition, the home loan EMI calculator helps get a proper break-up of the charges that may be levied, such as the processing fees. Knowing the all the applicable charges is important as the banks usually specify such charges as a percentage of the loan amount and not the actual amount.
With the help of an online home loan calculator, you can choose the most appropriate loan tenure, as a higher EMI with a shorter duration of the It will also help you in verifying your repayment schedule with the bank and modify it accordingly if needed. The home loan calculator is also helpful to know the readjusted EMI amount if you have extra funds to pay a part of the loan in a lump sum.
You can easily use the ICICI Direct Home Loan EMI calculator by following simple steps. The calculator has such a user-friendly interface that almost anyone can use it. All you need to do is enter the key variables of your Home Loan and the calculator will provide you with accurate results within a matter of minutes.
Here’s how you can use the calculator:
You can set all these variables by moving the calculator sliders on either side. This allows you to consider various variations of variables.
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The total home loan amount you pay (borrowed amount plus the interest payable) is spread over the term of the loan in the uniform payable amount due per month.That monthly repayment instalment is termed as home loan EMI (equated monthly instalment).
An individual belonging to any of the following categories can apply for a home loan:
a) A salaried individual from the government or private sector
b) Professionals (doctors, dentists, consultants, chartered accountants, etc.)
c) One who is self-employed in a business and files income-tax returns
The specific age criteria vary from one bank to another.
You can apply for a home loan in four steps:
a) Register on the website of the desired bank
b) Fill the application form and upload the required documents
c) Pay the processing fee
d) The bank will approve the loan and loan amount as per the procedure followed by the bank on the specified terms and conditions, and the bank will disburse the home loan amount.
The minimum amount of loan under a home loan is Rs.300000
A home loan amortization schedule is the record of all the instalments paid in home loan repayment. It shows a break-up of each regular payment's principal and interest component and displays the balance amount after each monthly payment.
You can claim a tax benefit on your home loan under section 24 of the Income Tax Act. You can avail of this benefit on the interest component of the repaid amount of the home loan during the financial year in EMIs of up to Rs.200000. Besides this, you can also claim an income tax deduction of up to Rs.150000 under section 80C of the Income Tax Act on the home loan EMI you have paid during the financial year.
Making partial payments on your home loan reduces the amount owed. As a result, the amount of interest due is reduced. Even if you make a partial payment, your home loan EMI remains the same, but the proportion of the EMI used for principal and interest repayment changes. The portion of the home loan EMI that goes toward repaying the principal component grows. As a result, the home loan is repaid more quickly.
Home Loan – ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470. Please note, loans related services are not Exchange traded products and I-Sec is acting as a distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
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