Planning your finances is the first crucial step when looking to buy a home. Apart from the cost of the property, you will need to take into consideration the down payment, stamp duty (6% of the market value) and registration charges (1% of the market value).* Depending on the developer, there may also be maintenance charges that you may need to pay for a year or more. Bear in mind that these costs are not usually covered by a home loan, and you will need to plan for them. Financial institutions usually provide up to 85-90% of loan against the value of the property.
If you are looking to buy a home, then there is no better time than today. Thanks to several government initiatives like reduction in stamp duty and other tax benefits, the cost of homes, especially in the affordable segment have reduced. What’s more, even the rate of interest on home loans have marginally reduced. With the effective low EMI, your dream home will now be easier to purchase than ever before. Let’s understand what an EMI is and how it’s calculated.
What is an EMI?
When you borrow money from any financial institute, you will have to repay it in small monthly instalments, inclusive of interest, over a specific period of time. This amount is called as equated monthly instalment or EMI. The amount to be paid every month varies according to the amount borrowed, rate of interest levied by the lender and the tenure of the loan.
Once you have shortlisted the property, it’s prudent to calculate the estimated EMI you will need to pay each month. A clear understanding about the outflow towards the housing loan every month will help you manage your finances. It will also help estimate the loan amount that can be availed and help in assessing the own contribution requirements and cost of the property.
How to calculate EMI?
Calculating EMI using an Excel can be a cumbersome task, thankfully, you will find easy to use EMI calculators like Lodha’s home loan calculator. Here, you will need to input the amount of loan you require, select a tenure and input the rate of interest. The calculator will display the EMI amount, as well as the interest you will end up paying over the principal amount borrowed.
Lodha’s home loan EMI calculator will give a fair understanding about the ratio of the principal amount to the interest due, based on the of the tenure and interest rate selected.
How to use Lodha’s EMI calculator?
All you need to do is input the following to arrive at your EMI:
• Loan Amount: Input the desired loan amount that you wish to avail
• Loan Tenure (In Years): Input the desired loan term for which you wish to avail the housing loan. A longer loan tenure (for a maximum period of 30 years) helps in reducing the EMI, but you will end up paying higher interest amount.
• Interest Rate (% P.A.): Input interest rate. You will find the rate of interest online.
Does Lodha provide support for home loans from bank?
Lodha Fincorp (LFC) is our in-house loan team which coordinates with multiple banks to get home loan for Lodha customers in the most convenient manner possible. Our representative will collect the requisite documents required for sanction of the loan, submit the same and the entire loan process up till disbursal of first loan instalment will be taken care of.
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