Here’s how you need to use a Housing Loan Emi Calculator

As an individual, it is crucial to plan ahead of the future. Financial planning is one such major aspect to be considered while looking out for financial investments and expenses. If you intend to buy a home, looking for the right interest rates and EMI options is a must. Online policy comparers offer a quick and easy Home loan EMI Calculator that helps individual understand their eligibility before applying at any loan or finance institution.

Here’s our quick 6 step guide to attain financial security while carefully cross checking our quick and easy financial checklist stated below:

1. Monthly Expenses:

Having to buy a home in India calls for an extreme financial stretch considering the steady rise of properties in the region. As an individual, it is important to have a fixed amount saved for future financial deficits. One needs to take care of their monthly expenses by minimizing monthly household expenses by 25-40% the least when they apply for a house loan. Click here to know: How to apply for home loans in India.

2. Understanding the concept of loan amount:

Currently, banks offer 80% of property value as a loan amount. It is important to consider that the rest 20% of the property value relies on us individually. This amount cannot be raised through loan or debts. Most financial advisors suggest a contribution of 40% down payment from savings to reduce the financial burden. Stamp Duty and other registration costs accounts up to 5 - 10 % of total cost for house loans.

3. Existing loans and debts:

The liability of home loan is magnanimous compared to another kind of loan amount. Hence, it is advised to clear off all other existing debts and loans including personal loan, education loan, car loan (as applicable). This not only helps you take financial decisions better for your home loans but also improves your CIBIL Score. Check your eligibility stats with easy and quick online tools like home loan emi calculator to understand the risk factors associated with applying for a home loan.

4. A steady source of income:

Financial planning can go haywire if there is a constant absence of regular income. If you work for a sector hit by recession recently, it is best advised to postpone any kind of financial purchase that requires a steady job or job stability.

5. Financial Reserve:

In an unfortunate event, where you need to be able to cash in funds, it is best advised to have an emergency fund with minimum 6 months of household expense handy. These deposits can be lucrative for short term investments like Bank FDs, Mutual Funds and others of similar liking.

These 5 steps are the most basic yet effective ways to plan your finances wisely while carefully choosing the right house loan online. Remember to look out for housing loan EMI calculator prior to applying for the same.

Share this article & your thoughts with us in the comments below!

Home Loan Eligibility Criteria for Self Employed Applicant

Planning to buy a property? With several financial companies offering attractive home loan options, it is more convenient in realising your dreams to buy and own a property.

The home loan process has been made far simpler and accessible thanks to a number of provisions that are offered by most of these competent institutions. You can complete several formalities online without the hassle of wasting your time or spending extra money.

Even if you not well versed with the way this business works or are completely new to the process of home loans, internet makes it far easier and within your grasp to understand the nuances involved. The company websites provides an in-depth understanding of the services that are being provided. A feature called the home loan eligibility calculator will help you find out whether or not you are eligible to avail loan of a certain amount. It will calculate your EMI, give you an idea of tenure and basically several resources for you to complete your initial R&D. Other than this, you can find real reviews from people who have used services to so you get an idea whether or not to approach such company.

You can take help from financial advisors to understand the process and get assistance every step of the way.  Some of the eligibility criteria include your age, educational qualification, credit history, existing loans, and more. One of the important criteria is whether not you are a salaried or self-employed individual.

If you are a self-employed individual, the process may get a little tedious compared to salaried individuals. Some important things to keep in mind are these:

A detailed statement of the profit or loss you make needs to be submitted. This is one of the crucial steps.  In the case of a salaried candidate, bank statements are completely trusted which also makes the process far convenient.

IT verifications might prove to be stringent. The company may check your IT returns from the past two years or more. A good IT return will surely reflect and prove to be a good basis for approval.

The home loan eligibility may differ from one company to another. You need to be prepared for verifications and evaluations.

A good credit card score, a bigger bank balance will surely help you get the approval on a fast-track.  Make a thorough research, improve your credit score, try paying a higher down payment. 

Know how you can apply for House Loan in India

For majority of the public, no home can be bought without being assisted by a home loan. This sure adds to your financial responsibility and is a long-term commitment where backing out will come with its share of repercussions. Buying a property in India is becoming one of the most sought after forms of NRI investment in India. Home loan EMIs can cause outflow of a major portion of your monthly income. In such scenario, many people opt for prepayment of home loan. But this feature has its own pros and cons. Read the following to get yourself equipped with important home loan prepayment tips:

1. Using your savings wisely: House loan  is a lot convenient thanks to easy accessibility and majority of the process being online. Home Loan Prepayment Charge is extremely affordable and almost at par with what Indians at home pay. But if you are planning to give out your entire savings towards closing a home loan, think again. No doubt, home loan prepayment is a very good option but giving out your saving may not be wise. If you do have some extra savings in hand, sometimes investing it in other schemes with higher interest rates may prove to be more beneficial than loan prepayment.

2. Increasing EMI: In order to avail a house loan, many companies in India have a minimum monthly income fixed to be eligible for the loan. If you are a salaried employee and get a raise in your income or your monthly salary is upscaled, you can ask your bank for an increase in the EMI. It will go a long way in helping you with your prepayment charges for home loan. Banks generally fix an income to EMI ratio. When you think of increasing your EMI, you should take this ratio into serious consideration and not think of exceeding it.

3. Smart Home loans: This is a new scheme featured by many financial institutions for home loans in India. Even NRI home loans are eligible for this scheme. A current account is provided to the customer associated with the housing loan. The main advantage of such a scheme is that, the bank calculates the rate of interest on the outstanding loan amount minus the balance in the current account, thus lowering the EMI on the housing loan. Investing in such a scheme gives you the security of using the current account balance during emergency as well reap the benefit of low EMI. But this option is not very helpful if you cannot maintain a sufficiently high balance in your current account.

4. When to go for prepaying : The interest rate on the house loan is higher during the initial part of the tenure whereas it goes on decreasing later. This is common to both home loans as well as those for resident Indians. Gradually, as interest component starts reducing, the principal component increases. So, if you are planning to prepay your housing loan, it is much wiser to do so during the initial part of the schedule. Prepaying during the later years of the home loan tenure does not save much of your interest amount. Plus, it comes with the insecurity of giving up your liquid finances.

5. Loan takeover by another bank: This is another common strategy for affording prepayment charges on home loans. Companies offer to take over the outstanding NRI Home loan at a lower interest rate or for a reduced tenure. This is a very safe option as it does not hamper your savings yet decreases the interest rates. But, the processing fees charged by the other bank can create a problem in this case.

Gather as much information before taking a step as huge as it is. It comes with responsibility and going wrong may have legal aspects involved Keep alert for a lot of fraud that occur both online and offline. 

Like what you’ve read? Feel free to share on Twitter or Facebook by using the super-easy share buttons below!

Is Your Home Loan Interest Rates Too High With Existing Lender?

A housing loan helps fund a major portion of the money required to buy a home. A home is a sign of stability for most of us. It is also one of the biggest investments thereby ensuring financial security in the longest run. Availing housing loan also gives you the benefits of saving your taxes. These benefits along with their clauses are guaranteed under section 80 CC, 24, 80 EE of the Income Tax Act.

The principal i.e. the amount your lender lends you, home loan interest rates on that amount and the tenure of the loan are some of the important aspects. These components help you make your decision. With several banking and private financial institutes in the market, you have a wide option of lenders to choose from. With a stiff competition among them, they vie for your attention by offering you the lowest housing loan interest rates and special offers which may include great extent of personalization for you. 

Interest rates may be of two types – fixed rate and floating rate. Fixed interest rate implies that your home loan interest rate remains constant throughout your loan tenure. In the floating type, the interest rate fluctuates in tandem with the market. Fixed interest rates are generally higher compared to floating ones. Floating interest rate is believed to be less expensive as compared to its counterpart. With several financial companies, you have an option to switch between either of the interest rate types. You need to understand your financial situation well before you can decide the type of interest rate that best suits your requirement.

The interest rate offered in the market as of today ranges between 9.50% and 12.50%. There are some companies providing rates as low as 9.15% to 9.30%. You have all the tools available on the internet to help compare between the interest rates offered by the best of companies. Opt for the one that offers you a low interest rate and perfectly accommodates your financial requirements.

You can also make use of other tools like eligibility calculator and EMI calculator that are easily available on the internet for your disposal. These should be conducted as part of primary research once you start hunting for your home loan lender. Your monthly income, age, existing loans, CIBIL score are some of the factors that determine how much loan amount you get. The internet gives you access to a lot of information and details to help get started on procuring your housing loan.

Which are the companies offering best home loan interest rates?

Looking for a housing loan? What are the factors to consider before you finalize the company to be your lender? With the growth and tremendous outreach of several bank and non-banking financial institutes, you have a wide range of options for your home loan. Some important elements to focus on include the principal amount you are eligible for, home loan interest rates, EMI, tenure, and more.

The best way to start is to look at your financial background. Consider your savings and understand the long impact taking a loan can have on you or your finances. You may have a family that is financially dependent on you. A loan at no point of time should come in the way of their wellbeing. Ask for help from a professional advisor if need be. Taking a housing loan is a big step and a misstep can have unfavorable consequence.

Once you know you are ready, start looking for a company that offers you not only the best deal but a great extent of customization to suit your needs. To learn more about home loan interest rates, the internet is the place to get started. There are a number of reliable websites that offer an overview and comparison between the offerings of top financial companies – banking and non-banking both.

 

The housing loan interest rate applied by the company may be fixed or floating. Fixed rate of interest is where the home loan interest rate remains constant throughout the tenure. Floating interest rate sees fluctuations according to the market-lending rates. Most of the companies today offer variable i.e. floating interest rates. In the case of fixed interest rate, the EMI you pay stays constant just like the rate. With fluctuations in rate, your EMI will go up or down as per the rate. So if you opt for floating interest loan, you got to be prepared to shell out extra if the rates are high or enjoy saving in a situation vice versa. Fixed rate of interests may be costlier compared to floating interest rate. Evaluate the pros and cons before finalizing the interest rate that suits your financial condition well. Keep a watch on the market rates yourself when you choose a loan with floating rate of interest.

The internet offers a lot of resources for you to make a smart and informed decision. Once you pick the company of your choice, make a thorough research and educate yourself about details related to loans.

Tips on how to put use to a Home Loan Interest Calculator

Planning to be a proud owner of a spacious new property? Need a loan to fulfil your dream? Let’s get started on the essentials. You may have several options available to help you with every aspect of this business. But it is important to know that factual exploration of your own will yield more benefits. Even a basic research done ensures that you are on the correct path. All you would require is an internet connection for this self-assessment

Whether you are a novice or already have a fair knowledge about loans will not matter. With the fluctuations in the market, rise of new institutions, policies that keep upgrading, you need to be constantly updated on information. Some tools are readily available at your disposal. Websites of the financial institutes, sites that offer advice, home loan interest calculators, are just some of these. Even if these terms sound like rocket science, they are not. The internet so much as even provides you with the definition in case you meet hurdles. So, before you approach a company with your documents, make sure you keep yourself informed.

Search for sites that offer comparison between different financial institutions. You also need to know about a processing fee rate that every company levies on you. These comparisons display a list of the financial institutions- banking and non-banking. It offers, on a single chart, the interest rates, minimum to maximum loan amount you can get, the tenure of the loan, and the processing fee offered to you. This will help you cut down on a lot of hard work. However, your research doesn’t end here. This will, without doubt, help you create a list of favourable companies you may wish to approach. Then comes another convenient tool: housing loan calculator. Even before you approach companies of your choice, this housing loan calculator will help you understand your real financial scenario. The calculator will save your time and your not-so-impressive mathematic skills. There are different types of calculator. One that will help determines the loan amount you are eligible for. An EMI calculator for home loan that will evaluate monthly amount. A home loan calculator that will give you the value of interest you have to pay every month. Tax benefit calculators and so on. These calculators are far from sophisticated. The slots that you usually have to fill include: the loan amount, tenure of the loan, interest rate and others depending on the site and kind of calculator you use. Mostly, every company provides loan calculators on their website and are definitely free of cost.

 

These options will help you make an informed decision without taking the trouble of visiting these institutions personally or investing any money at all. A home loan calculator will give a fair idea of whether applying for a certain amount will exert any pressure on the everyday necessities of your family. These simple efforts will lead to correct choices and reduce scope of errors or any financial loss and bring you closer to your aspiration of owning a dream home.