Benefits of Using the Home Loan EMI Calculator

By using our Home Loan EMI Calculator, you can assess your monthly installments even before applying for a housing loan. This helps you make informed decisions regarding:

• Loan Affordability: Know how much you can afford to borrow for your home loan.
• Loan Tenure Selection: Decide whether to opt for a long-term or short-term home loan based on your financial goals.
• Down Payment Planning: Understand how much you should contribute towards the down payment for your home.
• Financial Planning: Plan your finances to ensure you can make timely loan repayments and avoid defaults.
• Confirm EMI Details: You can check if the EMI and repayment plan offered by the bank match your expectations, and also calculate the upfront processing fee that may be deducted from the loan amount.

Charges Applicable on Missing Home Loan Installments

If you miss an EMI payment due to insufficient funds or any other reason, you may incur the following charges:

• Cheque/NACH/SI Bounce Charges: A fixed charge levied each time an automated EMI deduction fails due to insufficient balance or account closure.
• Late Payment Charges: Either a fixed fee or a percentage of the unpaid amount may be charged if your EMI payment is delayed.
• Penal Interest Charges: Applied on the unpaid EMI amount until the due home loan EMI is paid, this charge is typically a fixed percentage of the outstanding principal.
• Loan Repossession Fees: In extreme cases, if payments are consistently missed, lenders may charge additional fees for initiating legal proceedings or repossession of assets if the loan was secured against collateral.
• Impact on Credit Score: While not a direct charge, missing EMIs will negatively affect your credit score, making it harder to obtain loans in the future.

How to Reduce Your Home Loan EMI?

• Make Part Prepayments: Pay a part of the loan amount early to reduce your EMI or loan tenure.
• Transfer Your Loan: Move your loan to a lender with a lower interest rate to lower your EMI.
• Increase Loan Tenure: Choose a longer loan term to reduce your monthly EMI (though it may cost more in interest).
• Refinance for Better Rates: If possible, refinance your loan at a lower interest rate.
• Increase Down Payment:: Paying more upfront reduces the loan amount and therefore lowers your EMI.
• Choose a Step-Down Loan: Start with a higher EMI and gradually reduce it over time.
• Consolidate Loans: Combine multiple loans into one to lower the EMI.
• Opt for a Longer Term: A longer loan term can reduce your EMI but may increase the total interest paid.

Can Your Home Loan EMI Amount Change During the Loan Tenure?

Yes, your Home Loan EMI can change during the loan tenure under certain conditions:

• Interest Rate Changes: If your loan has a floating interest rate, the EMI may change when the interest rate fluctuates due to changes in the benchmark rate. If the rate increases, your EMI might go up; if it decreases, your EMI could go down.
• Loan Prepayment: If you make a prepayment (partially pay off your loan before the due date), you can either reduce the EMI or shorten the loan tenure. If you reduce the EMI, your monthly payments will be lower, but the loan will take longer to pay off.
• Step-Up or Step-Down Loans: Some loans allow for step-up or step-down EMIs. In a step-up loan, your EMI starts lower and gradually increases over time. In a step-down loan, your EMI starts higher and decreases over time. Some loans allow for step-up or step-down EMIs.
• Partly Disbursed Loans: If your loan is disbursed in parts, your pre-EMIs (interest payments before the full loan is disbursed) may increase with each disbursement.