By 
- Recommended Keywords – Home Loan EMI calculator, Home Loan
- Recommended word count – 650 to 750 words
- Total word count – 656 words
Let not the dream of buying a house just be a dream. Apply for a Home Loan to secure the right financing and make your dream a reality.
Significant Loan amounts, competitive interest rates, and a structured repayment system are the top benefits of a Home Loan.
The homebuyers have especially applauded the structured repayment system. It enables repayment according to individual affordability, reducing financial pressure and mental stress.
This blog explores the impact of the Loan amount and tenure on your EMI.
Impact of Home Loan Amount on EMI:
- What is the Home Loan Amount?
The Home Loan amount is the sum of funds you borrow from the bank for home financing. For example, if you borrow Rs 1 crore from the bank, it is considered as the Home Loan amount.
- How does the bank provide a Home Loan Amount?
The bank assesses your eligibility to determine a suitable Loan amount. A strong eligibility profile enables you to obtain a higher Loan amount.
This ensures the Loan amount is appropriate for your repayment capacity and is sufficient to fulfil your financial requirement.
- What is the impact of the Home Loan amount on the EMI?
The Home Loan amount forms the most significant part of your Loan application. Hence, it has a clear-cut impact on the EMI calculation.
Ideally, when you take a large Home Loan, you need to repay more to the bank. So, the EMI amount increases.
On the other hand, when you take a reasonably sized Home Loan, you need to repay a decent amount to the bank. This keeps your EMI in check.
A large Home Loan amount also increases the total interest liability and vice versa. Therefore, it is important that you carefully consider the Loan amount you want to take.
Consider using the Home Loan EMI calculator to better understand the impact of the Loan amount. Based on this, strategically plan your Home Loan application.
Impact of Home Loan tenure on EMI:
- What is the Home Loan tenure?
Home Loan tenure refers to the time period in which you agree to repay the Loan amount. Based on this timeline, the EMIs are calculated for repayment.
- How is the Home Loan tenure set?
The bank allows you to have complete freedom in choosing the Home Loan tenure. However, the tenure must fall within the time frame specified by the bank.
A key advantage here is the flexibility the bank offers. You can adjust the tenure in specific situations or even opt for foreclosure depending upon your changing financial conditions.
- What is the impact of Home Loan tenure on an EMI?
Ideally, opting for a longer tenure results in a lower EMI. This means you repay the Loan amount slower.
Similarly, opting for a shorter tenure results in a higher EMI. This allows you to repay the Loan amount faster.
However, you must also note that the tenure has an impact on the Home Loan’s interest liability. A longer tenure results in a higher interest liability and vice versa.
Here again, using the Home Loan EMI calculator is helpful. It practically demonstrates how different tenures impact the total interest liability and the EMI.
You can readily access the Home Loan EMI calculator on any banking and financial website and mobile app. You can use the calculator as many times as you like, absolutely free of cost.
Summing It Up
Turn your dream of buying a home into reality by applying for a Home Loan. A Home Loan offers formal credit at a competitive interest rate for your choice of tenure. You can repay the Loan amount in EMIs over a tenure.
Home Loan amount and tenure have an impact on the EMI calculation. Hence, carefully opting for them is recommended.
A Home Loan EMI calculator is a handy financial tool. It allows you to consider varied Home Loan amount and tenure options and choose one that most aligns with your profile.
References:
Comments