Some of the attractive features of Mahindra Finance Home Loan are as follows:
|Product||Interest rates||Tenure||Processing fee||Ideal for|
|Regular Home Loan||Starting from 11.50%||20 years||1.75% to 3.5%||All housing requirements|
|PMAY||Starting from 11.50%||20 years||As per Govt guidelines||Product of MRHFL|
Additional Info: Also check SBI Home Loan EMI Calculator
The EMI calculation comprises of a complicated formula. It accounts for various factors. There are three variables to contend with, such as:
The formula is as enumerated below:
EMI = [PR(1+R)^N] / [(1+R)^N-1] where P, R, and N constitute the principal loan amount, the ROI, and the loan repayment period.
Though the formula appears intimidating, it is easy to calculate the EMI using a readymade EMI Calculator. Mahindra Finance offers the facility of such an EMI Calculator on its website. The calculator is easy to use. The customer has to input the three variables, and the system does the calculation within no time.
|Loan Amount||Rate of Interest||Loan tenure||EMI|
|10 Lakhs||11.50%||240 months||10,664|
The EMI calculation depends on the following three variables:
|Rate of Interest = 11.50%|
|Tenure||10 Lakhs||15 Lakhs||20 Lakhs|
|10 years||Rs. 14,060||Rs. 21,089||Rs. 28,119|
|15 years||Rs. 11,682||Rs. 17,523||Rs. 23,364|
|20 years||Rs. 10,664||Rs. 15,996||Rs. 21,329|
|Rate of Interest = 12%|
|Tenure||10 Lakhs||15 Lakhs||20 Lakhs|
|10 years||Rs. 14,347||Rs. 21,521||Rs. 28,694|
|15 years||Rs. 12,002||Rs. 18,003||Rs. 24,003|
|20 years||Rs. 11,011||Rs. 16,516||Rs. 22,022|
Additional Info: Looking for 10 Lakh Home Loan? Check EMI & Apply.
Additional Info: Also check HDFC Home Loan EMI Calculator
Mahindra Finance offers Home Loans at fixed and floating rates of interest. The floating rates of interest are linked to the Prime Lending Rate of Mahindra Finance. As the PLR changes, so do the rate of interest on Home Loans. As the ROI is a crucial feature of the EMI calculation, a difference in the ROI will bring a corresponding change in the EMI amount.
The concept of EMI is such that it commences after the final disbursement of the loan. In the case of finance for properties under construction, the disbursement happens in tranches. Hence, the company grants a moratorium or holiday period for servicing the EMI. This period could stretch up to 18 or even 24 months. Generally, financing companies insist on the servicing of the interest every month before the commencement of the regular EMI. At times, they also allow capitalisation of the interest. Under such circumstances, the principal loan amount increases, thereby bringing about a change in the EMI.
PMAY beneficiaries are entitled to interest subsidy from the Government. This Government grant is an upfront subsidy. It is credited to the loan account immediately on receipt from the Government. The credit of upfront PMAY Subsidy reduces the principal loan amount considerably. The loan amount has a significant role to play in the estimation of the EMI. As the loan amount reduces, so does the EMI.
|Category of borrower||EWS||LIG||MIG-I||MIG-II|
|Loan amount||Rs. 7 Lakhs||Rs. 10 Lakhs||Rs. 15 Lakhs||Rs. 18 Lakhs|
|Rate of interest||11.50%||11.50%||11.50%||11.50%|
|Loan tenure||20 years||20 years||20 years||20 years|
|EMI before subsidy||Rs. 7,465||Rs. 10,664||Rs. 15,996||Rs. 19,196|
|Subsidy amount||Rs. 2.67 Lakhs||Rs. 2.67 Lakhs||Rs. 2.35 Lakhs||Rs. 2.30 Lakhs|
|Loan amount after subsidy||Rs. 4.33 Lakhs||Rs. 7.33 Lakhs||Rs. 12.65 Lakhs||Rs. 15.70 Lakhs|
|Revised EMI||Rs. 4,618||Rs. 7,817||Rs. 13,490||Rs. 16,743|
|Benefit||Rs. 2,847||Rs. 2,847||Rs. 2,506||Rs. 2,453|
Additional Info: Also Apply Home Renovation Loan
MyMoneyMantra.com has an identical EMI Calculator on its webpage. It provides accurate EMI results. Using the calculator is also easy.
Besides the EMI, this calculator offers details of total interest payable on the loan amount for the entire loan tenure.
Additional Info: Also check Pan Number for Banks
Housing is a priority issue in India. The Government has announced income tax benefits to individuals for repaying their Home Loan instalments. The benefits are available for both interest repayment and principal amount repayment.
Sec 80C of the IT Act entitles individuals to claim tax benefits up to 1.50 Lakhs on the repayment of the principal portion of the Home Loan.
Sec 24 of the IT Act allows individuals to get benefits up to 2 Lakhs on the repayment of the interest component of the Home Loan.
Additional Info: You can also Check AnyRoR Gujarat Land Record
The Mahindra Finance Home Loan EMI Calculator is a handy tool for estimating the Home Loan EMI. It is a straightforward calculation where customers have to submit information like loan amount, ROI, and the loan repayment tenure.
Mahindra Finance charges Home Loan interest on monthly reducing balance basis. This mode of calculation is different from that adopted by commercial banks in India that work on daily reducing balances.
The primary area of difference is the base figure that these methods take up for the calculation. In the monthly reducing balance method, the base figure is the closing balance of the previous month.
For example, the company calculates interest for September on the closing balance of August. In the daily reducing balance method, the base figure is the daily balances in the account. The very nature of calculation suggests that the daily reducing balance method is more beneficial to the borrower.
The customer gets the benefit of interest calculation on the EMI they pay during the month. For example, if the customer pays the EMI on the 5th of the month, the system calculates the benefit of interest for the next 25 or 26 days left in the month. It is not the case in the monthly reducing balance method.
Mahindra Finance offers Home Loans on both fixed and floating rate basis. The EMI in the case of a fixed rate of interest Home Loans does not change with any fluctuation in the interest rates. However, the floating rate Home Loan EMIs is subject to change with every variation in the rate of interest. The modification in the EMI can cause financial problems for borrowers, especially if they are borderline cases. Hence, Mahindra Finance tries to maintain the EMIs as constant while varying the tenures accordingly.
Yes, any change in the contracted terms should be in the knowledge of both the parties. It is obligatory on the part of Mahindra Finance to inform the customer of any change in the tenure or the EMI.
Yes, restructuring of the EMI is possible under two extreme cases. One is when the borrower makes an advance payment, thereby reducing the principal liability. They can approach the company to reduce the EMI for the residual period. The other occasion is when the customer is not in a position to service the EMI. He can approach the company to extend the tenure and reduce the EMI.
The EMI calculation depends on the assumption that the borrower will service the EMI on time. Any delay or default in the payment of the EMI can affect the calculation.
No, the Mahindra Finance Home Loan EMI Calculator cannot do complicated transactions like accounting for pre-EMI interest.
Yes, MS Excel is one of the best tools to calculate EMI. The formula is a straightforward one. EMI = PMT(rate,nper,pv) where: