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Home Loan EMI Calculator: How to Reduce Your Home Loan EMI Burden

Buying a home is a wish that each of us has in our hearts. But as amazing as owning your own home, it is a solution that requires a large amount of investment. This investment usually includes a home loan that is gradually repaid back to the lender in the form of Home Loan EMI. Availing a home loan requires prior planning because it includes a relatively long tenure. It can weigh on household finances for a long time. An honest idea to calculate your EMI amount before signing on the line. A great tool like the Home Loan EMI Calculator can assist you out with this.

What is Home Loan EMI Calculator?

The Home Loan EMI Calculator is an online tool for calculating monthly EMI. Based on some details about home loans, the calculator will give you the exact amount EWI has to pay. It also includes a chart showing the payment schedule and details of the total payment.

Calculate Home Loan Eligibility

Advantages of Home Loan EMI Calculator

The Home Loan EMI Calculator is an all-purpose, simple, and seamless calculator that only requires you to enter 3 values. Attaining benefits is like being aware of what you are getting into. You have a clear picture of the amount of the loan that will be given to you, for how many months/years, the interest will generally be compensated. This way you can plan all your finances in advance.

With that in mind, you need to plan in advance where you will start paying the initial amount as well as the monthly EMI, which again is a task in itself.

How to Reduce Your Home Loan EMI Burden?

In a time when the fragile economy is weighing on the lives of most people, making regular loan payments is a challenge. For those who have taken out home loans where the EMI is very high, this challenge is even more difficult.

Reducing EMI payments seems like an effective way to survive in a bad economy. If, as a borrower, you’re also looking for ways to simplify your home loan by reducing your EMI payments, follow these tips-

Change your lender

When you take out a loan, you may have chosen a lender that offers you high-interest rates on your home loan. Now, when you’ve found a new lender who wants to offer significantly lower interest rates, consider replacing your lender’s middle loan. Even if you can’t find a lender with a lower interest rate on your home loan, you should look for a lender who wants to extend your repayment period. Before switching lenders, use an online home loan EMI calculator to find out how much your EMI could drop.

Changing lenders is very convenient. All you have to do is contact your existing and new lenders and request a loan balance transfer. Refinancing a home loan at a lower interest rate is one of the easiest ways to reduce EMI.

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How Do Lenders Determine Home Loan Interest Rate?

Home loan interest rate is defined as the rate of percentage of the principal amount charged by home loan lender. The home loan amount is determined by the interest rate charged by banks and non-financial institutions. The interest rate charged determines how much you must pay your lender each month against your loan. Interest rates are typically linked to the repo rate and vary by lender.

Home loan interest rates differ in every financial institution. It also vary from person to person. A very small change in the home loan interest rate can lead to an immense increase in overall interest paid.

When you apply for a home loan, you’re essentially borrowing money from a lender, who charges you interest in exchange for financing your purchase. Think of this interest rate as the “rent” you pay for using their money. You repay both the borrowed amount (principal) and the accumulated interest through fixed monthly installments called EMIs over the loan term. Several factors influence this interest rate, and understanding them before applying can put you in a stronger position.

Factors that Determine Home Loan Interest Rates

Repo Rate

Repo Rate is the interest rate at which the Reserve Bank of India lends money to other banks. Naturally, the lower the lease rate at which banks obtain their loan, the lower the rate a customer pays. As a result, the lower the repo rate, the lower the interest rate for end users.

Reverse Repo Rate

This is the inverse of ‘Repo Rate.’ At this rate, banks lend to the Reserve Bank of India. If the Reverse Repo Rate is high, banks are eager to lend to the RBI. This means that the bank will profit handsomely, which will be passed on to customers in the form of lower interest rates.

Credit Score

When you apply for a home loan, the bank will always check your credit score. This informs the bank of your creditworthiness and allows them to determine whether you are a high-risk borrower or not. The better your credit score, the lower your home loan interest rate. Factors like on-time payments, credit history length, and total debt all contribute to your credit score.

Prime Lending Rate (PLR) 

PLR is the interest rate reference rate that banks use to determine interest rates on various products. Many banks state interest rates in the format shown below. PLR + 0.5%. In this case, if a bank’s PLR is 8%, the interest rate on their housing loan would be 8.50%.

Cash Reserve Ratio (CRR)

CRR is the minimum percentage of total customer deposits that the bank must hold as reserves. This can be in cash or in the form of deposits with the RBI. Higher the CRR, the higher the interest rate paid by the customer. This is because an increase in CRR reduces the amount of liquidity in the system.

Statutory Liquidity Ratio (SLR)

The SLR is the reserve required of commercial banks. SLR can be kept in the form of gold, government securities, and so on. A bank can only offer credit to its customers after the SLR has been met.

Benchmark Prime Lending Rate (BPLR)

The BPLR is the interest rate at which a bank lends to its customers. RBI replaced the BPLR because banks frequently loaned money at extremely low interest rates. With this in place, no bank will be able to lend below the BPLR. This can have a visible impact on the interest rate that a bank offers a customer. The greater the BPLR, the greater the interest rate that a customer must pay.

Tips to reduce Home Loan Interest Rates

Here are a few tips to reduce home loan interest rates:

Chose Short Home Loan Tenure

The length of your home loan tenure is a critical decision. While longer tenures offer lower EMIs, they come at the cost of higher overall interest paid. Weigh your options carefully before deciding.

Make More Down Payment

A methodical approach to purchasing a home will be advantageous. You can work toward a larger down payment and then reap the benefits of a smaller loan amount with a much lower interest rate.

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Know the details of home loan statement.

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Home Loan in Guntur

Guntur is the second-largest and third most populous city of Andhra Pradesh. It is a municipal corporation and hence the administrative headquarters of the District of Guntur. The town of Guntur is renowned for its business, e-commerce industry, education, and agriculture. This city, today, offers most of the people good housing options and allows them to satisfy their dream of building a home. Take the benefits of home loan from Home First Finance Company which offer home loan in Guntur with 48 hours sanctions and hassle-free process.

Home First Finance Company India is a Housing Finance Company which offers home loan in Guntur with 48 hours sanctions and hassle-free process. Most of our customers are first time home buyers and we empower them to live better! Loan amounts for these homes typically range between 5 lakhs to 50 lakh Rupees.

https://www.youtube.com/embed/M95sofuNrOQ?feature=oembedHome Loan in Guntur Made Easy

Why HomeFirst home loan a good option for you?

Loan enhancement

Have an unexpected expense, or has the property value increased? Don’t worry, because we will add on the extra amount to your existing loan.

Auto-Prepay

This feature facilitates pre-payments in addition to EMI with no pre-payment charge for existing customers.

View All Our Features

Contact Us:

1st floor, Shri Sainath Complex(DSR Complex), 15/1 Arundelpet, Guntur, Andhra Pradesh-522002.

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How to Apply For PMAY-2.0 Online

The Pradhan Mantri Awas Yojana- Urban 2.0 (PMAY-U 2.0) is a government initiative to provide affordable housing to one crore urban families. With this scheme, the government aims to improve the quality of life for all citizens and also address the housing needs of economically weaker sections and middle-income groups. Under this scheme, 118.64 lakh houses are already sanctioned.

Do you qualify for PMAY 2.0?

To check if you qualify for PMAY 2.0, you’ll need to consider a few key factors:

Check for your Income: Firstly, check the category for which you can avail the benefits. There are three income categories for which PMAY-U 2.0 benefits are available. In the table below, you can check your income eligibility.

EWS-Less than ₹3,00,000

LIG-₹3,00,000-₹6,00,000

MIG-₹6,00,000-₹9,00,000

Home Ownership: You or your family should not have a pucca house anywhere in India.

List of Documents Required

Applicant’s Aadhar Details: To verify identity

Aadhar Details of Family Members: To verify identity

Active Bank Account Details: For receiving the benefit amount

Income Proof: Salary slips or ITR returns

Caste Certificate (If you belong to SC, ST or OBC): Issued by a competent authority

Land Document (If you are applying for BLC vertical)

Applying for PMAY 2.0 Online

The Pradhan Mantri Awas Yojana (PMAY) 2.0 scheme provides financial assistance to eligible individuals for purchasing a home. Here’s a step-by-step guide to applying for the benefits under the scheme online: 

Visit the PMAY-U website: Go to the official website of PMAY-U at https://pmay-urban.gov.in/.

Review the Scheme Guidelines: Familiarize yourself with the eligibility criteria and other details mentioned in the PMAY 2.0 Scheme Guidelines.

Navigate to the Application Page: Locate and select the option to “Apply for PMAY-U 2.0” on the website.

Proceed with the Application: You’ll be directed to a page with various options. Choose “Apply for PMAY-U 2.0” again to proceed.

Review Application Instructions: A page opens with “Instructions for the User”. Carefully read the instructions provided on the application page. Scroll down and select Click to Proceed.

Ensure Document Availability: A page opens with Documents Required. Verify that you have all the necessary documents required for the application process before proceeding further. Scroll down and click on Proceed.

Eligibility Check: Enter your basic information, such as your state of property, and other details on the designated page. Click on “Eligibility Check” once you’ve filled in all the required fields. After you fill in all the fields, click on Eligibility Check.

Aadhaar Authentication: A page opens with Consent for Aadhar Authentication. Provide your name and Aadhaar number to initiate the Aadhaar authentication process. Enter the OTP you receive on your Aadhaar-linked mobile number.

Complete Beneficiary Survey: After this, you’ll be presented with a beneficiary survey form. This form will typically collect information on personal details, family members, household details, address details, home loan details (if applicable), and other relevant information. Submit the completed form to receive your application number.

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How to Improve Your Credit Sore: 8 Ways to Improve Credit Score

Also, read this article in हिंदी, मराठी, తెలుగు, தமிழ், ગુજરાતી, and ಕನ್ನಡ

Your Credit Information Report (CIR) plays a major part in the loan application process and hence a lower score can impact your chances for loan approval. So, if you’ve got had a bad credit history and you wish to improve your credit score then it’s important to know the choices that you simply have. Reaching a “credit repair” company and paying a huge sum of money might not be the simplest solution. Credit report isn’t related to any credit repair company.

Your credit score—a three-digit number lenders use to assist them to decide how likely it is they’ll be repaid on time if they grant you a credit card or loan—is very important considering your financial life. the higher your scores, the more likely you’re to qualify for loans and credit cards at the foremost favorable terms, which can save you money.

If you want to boost your credit score, there is a variety of easy stuff you can do. It takes a small amount of effort and, of course, some time.

Here’s a step-by-step guide to improve your credit score:

1. Pay Your All Bills on Time:

When lenders review your credit report and request a credit score for you, they’re very curious about how reliably you pay your bills. That’s because past payment performance is typically considered an honest predictor of future performance. You can positively influence this credit scoring factor by paying all of your bills on time as agreed every month. Paying late or settling an account for fewer than what you originally agreed to pay can negatively affect credit scores.

2. Eliminate Your Credit Card Balance:

The second thing you’ll do is to eliminate those credit card balances. Only spend as much amount as you’ll repay within the billing date. By balances, also mean any unpaid dues on loans and EMIs. Check with your lender and negotiate to end your loan account by paying off any unpaid dues. Such unpaid dues or balances on credit cards pull your score down. Paying off this amount will positively reflect on your credit score. Also, it’s better to own only one or two credit cards so it becomes easier for you to check track of repayments.

3. Audit Credit Realisation Ratio:

Using credit cards to buy everything you purchase may sound fancy, it should also get you a couple of reward points/cashback. But it’s recommended to check the credit utilization ratio within 30% or less of the available credit limit on your card. This rule can have a positive impact on the increase and managing your credit score. A low-balance credit card usage history reflects a healthy Credit score.

4. Connect with the Bank:

If you’re going through a tough phase and unable to pay your loans/credit card bills on time, don’t just stay quiet. it’s necessary that you simply visit the bank and communicate your hardships to let them know why you haven’t been ready to pay the installments on time. If you have had a good, well-maintained relationship with the bank, the bank will analyze your situation and provides you leeway in deferring the payments. The bank may do some adjustments such that missing payments won’t hamper your credit score.

5. Analyze for Inaccuracies:

Your financial behavior might not always be the explanation for a lower credit score. There could also be errors in your credit history information resulting in a lower score within the report. Verify your Credit report for errors; if you discover any, you can dispute it. The authorities will verify the details and make the required changes in your report. An error within the spelling of your name or a missing/additional transaction can flip the score the wrong way up.

6. Do not Abandon Any Credit Card:

With time, you’d have bought high-end credit cards and stopped using the first, basic card you had. Some people might think that it’s better to close the credit card account since it’s not getting used. However, this decision can affect your credit score. The credit rating agencies and lenders check out this act as if you’re incapable of managing different credit lines. It is recommended to carry on to all the credit cards you own even if it means to create a transaction only for the sake of ritual to stay your card operational. the amount and kinds of credit facilities you’re managing matters in improving your credit score

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Home First Finance- Easy Home Loans

Buying a home is not an easy decision. But guess what is more difficult? Getting a home loan sanctioned. There are many lending options available in India to get a home loan like banks, NBFCs (Non-Banking Financial Institutions) or private lenders. All these offer a competitive interest rate but that does not guarantee that you will get the best deal for home loan.

Why HomeFirst?

HomeFirst is one of the best companies for home loans that keeps their customers in their top priority. Let’s see the best features of HomeFirst-

Best Customer Service- HomeFirst has the best customer service. Our relationship manager gets in touch with you when you apply for a home loan. The same manager will continue with your service or any other queries you may have during the loan sanctioning process.

Auto Prepayment- If you want to prepay a fixed amount of your loan each month, HomeFirst has a special Auto Prepay option that helps you to automate your prepayment in addition to EMI. The best benefit for that is there are no additional charges for auto prepayment of your loan amount.

Flexible repayment options- HomeFirst offers flexible repayment options, such as the ability to prepay your loan without any prepayment charges. This gives you more control over your finances. You can also check out our Home Loan Prepayment Calculator to check how these options will affect your finances.

No Prepayment Charges- Most of the lenders will charge on prepayment of loan amount. HomeFirst is one of those lenders where you don’t have to pay prepayment charges for repayment of home loan early.

Quick and easy loan process- HomeFirst has a simple online application process, basic eligibility criteria, and a minimal documentation requirement. This can help you get your loan approval quickly and easily.

Digitalised Process- HomeFirst has a digitalised process for loan approval. You just need to fill out the application link with all the necessary details. With this done, you can rest assured that our representative will get back to you with all the details in just 48 hours.

Minimum Documentation- You only need to submit basic documentation when you apply for a loan against property with HomeFirst. This saves time and expedites verification.

No Income Proof- HomeFirst does not require income proof to sanction a loan. This can be a great option for self-employed or informal salaried borrowers.

Low interest rates- HomeFirst offers competitive interest rates on home loans. This can help you save money on your monthly payments. Lower interest rate helps you lower your overall cost of buying a home.

Online customer portal- HomeFirst has a dedicated mobile application and online customer portal where you can track your loans, access your loan statements, and raise service requests. This makes it easy to manage your loan from anywhere.

Average Turnaround Time- The average turnaround time for home loan approval is 48 hours. Loan Enhancement- You don’t need to worry when the value of your property has increased. HomeFirst will provide you with loan enhancement in case of need to your existing amount.

HomeFirst has evolved with the world making the whole process paperless and convenient for you. Our customers come as a priority to us and we make sure that they get the best customer service. Finally, to make the process even simpler, Customer Portal helps you in tracking your loan and getting updates regularly.

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Applying for Home Loan – Know more about Home Loan Terms

Home Loan Terms

Buying a home is one of the biggest financial decisions that you and your family would ever make and for most of us, taking a home loan is the sole way to bring alive our aspirations of homeownership. A home loan is an amount that an individual borrows from a bank or a housing finance company (HFC) for the purpose of buying a house / constructing a house. This amount has to be repaid in the form of easy monthly installments (EMI). The property is taken as a security against the borrowed amount by the financial institution. Being well aware of the home loan terms works is an effective way to avoid any unwanted surprises when you actually apply for one.

Here are 10 terms about Home Loan Terms you should know before you sign on the dotted lines!

The eligibility criteria for the Home Loan 

Do you qualify for a home loan? If yes, how much amount are you eligible for? The lender will assess your eligibility depending upon your income & repayment capacity. Some of the other factors that are taken into consideration while evaluating a home loan are age, educational qualification, financial position, number of dependents, the income of your co-applicant, job stability & previous repayment track record. Some lenders provide a home loan eligibility calculator that will give you a quick assessment of your loan eligibility.

The Rate of Interest (ROI)

Your rate of interest will determine your interest outflow on your loan amount. Usually, the interest rates range between 8.5% to 14.5% for a Home Loan. Your rate of interest will depend on the strength of your home loan process. Quick tip – furnish as many documents as possible which clearly proves your income and property details. This will make your application more creditworthy and the lender and will offer you a better rate of interest.

Floating ROI on Home Loan

Floating Rate – the interest rate is generally linked to the lender’s benchmark rate. In case of any change in the benchmark rate, the rate of interest would also change accordingly unlike a Fixed ROI.

Fixed ROI on Home Loan

In a fixed-rate loan, as the name suggests the rate of interest is generally fixed when you are taking a loan. This fixed rate of interest is applicable throughout the complete tenure of the loan, but in some cases, lenders have small print that says that the fixed rate can be changed at intervals such as 10 years depending on market conditions.

Additional costs to be incurred

Besides paying EMI, there can also be other service & processing costs that the lender can levy upon the borrower when applying for the loan. It is important that you discuss the same with the lender and have a thorough understanding of these charges before applying for the loan.

Set your tenure according to your EMI budget

You can take a home loan for a maximum tenure of 30 years. Your home loan tenure affects your EMI in a significant manner, e. higher the tenure – lower the EMI and vice versa. There is no point in dragging your home loan for 25 years when you have the capacity to pay it off in 15 years. Similarly, if you wish for a lower EMI amount, then go for a longer tenure.

Repay regularly

Once your home loan has been approved, you have to keep in mind that you need to repay it on time & hence it is advised that you follow a strict budget so that there is no problem or irregularity in paying the EMIs. You need to channel your resources towards regular & timely repayment of the loan in order to maintain a good credit bureau score.

List of crucial & mandatory documents

Following are some of the mandatory documents required for a home loan:

KYC documents

Aadhaar Card

Voter ID

Valid Passport

Driving License

PAN Card

Credit or Income documents

3 recent salary slips

Form 16

IT returns for last 3 years

Shop Act License or any other business license (applicable for self-employed applicants)

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Your Responsibilities as a Borrower

Congratulations on buying your property! Amidst all the celebration, you must realize that you have just made a huge commitment, and the new responsibilities of servicing the loan will continue for some time. In this article, we’ve compiled a list of things you need to remember as the months pass ahead.

Timely repayments:

Please ensure that there is always enough balance in your account for the EMIs. A single defaulted payment comes at a heavy price: not only in financial terms, but it will also impact your Credit Score.

Pre-pay as and when possible:

We encourage our customers to complete all his responsibilities to get rid of their home loan burden faster. Remember, whatever you pre-pay will directly go towards reducing your principal. In fact, just to make it easier, RBI has also removed any charges on prepayments.

Take advantage of tax benefits:

There are several tax benefits available under Section 24 and Section 80 C of the Income-tax Act, which will help you save on the interest and the principal amount repaid.

Tenure reduction is better than EMI reduction:

If you opt to reduce your EMI amount after pre-paying some part of the loan, you end up paying more interest. If it’s possible, try to pay the same EMI, as its higher amount every month will reduce your tenure and save a sizable amount on your interest payments.

Paperwork is important:

Don’t lose your documents like sanction letters, loan agreements, and so on. Until your loan has been fully repaid, make sure all your paperwork is in order, and that you have all the details of the repayment records. Once your loan account is closed, make sure you get a letter from us saying that your loan has been repaid in full and you are in possession of the original property documents.

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Get your own home with Home First Finance.