Everyone wants a home of their own. However, buying a home needs a large sum of money. Thus, availing a Home Loan is a decision which must be taken after great thought. To ease your plan major NBFCs offer lucrative Home Loan deals for eligible applicants based on an easy-to-meet eligibility criteria.
To be able to plan your loan better use the Housing Loan EMI calculator available at the lender’s website. This is a simple tool which can be toggled to achieve different combinations so you can compare and decide on a manageable loan.
The formula used for calculating EMI is,
EMI = [P x R x (1+R)^N]/[(1+R)^N-1] here P represents the loan amount or principal, N is the number of monthly instalments and R is the interest rate per month, i.e. suppose the rate of interest per annum is 11% then the value of R will be 11/(12 x 100).
Use the following steps to operate the calculator -
1. Click to go the EMI Calculator Page2. Choose the Loan Amount, Rate of Interest and Tenor (in months)
3. Your EMI will be shown below
In addition, you can claim tax deductions under Section 80C up to Rs.1.5 lakhs on the principal amount repaid through the annual EMIs. You can also get tax deductions under Section 24 up to Rs. 2 lakhs on the interest component that you can repay annually via your EMIs.
Also Read: How Much Amount can I get as the Home Loan on Monthly Income?
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.