Piramal Housing Finance Home Loan EMI Calculator

Piramal Capital & Housing Finance (PCHF) was found in 2010 as a Non-Banking Financial Company (NBFC), offering structured loans to the Indian real estate sector. The company is registered with the National Housing Bank (NHB) and offers flexible loan options to both wholesale and retail customers.

Throughout its stint, the company has been acknowledged for its umpteen financial services and therefore been awarded with numerous awards and recognitions.

Offering structured debt to the real estate sector is the core business of Piramal Capital & Housing Finance. With a whopping figure of  47,000 Crores as total investments, loans, and assets under management, the company enjoys a Return on Equity of over 19%. Its strong in-houses processes and controls help the company brings down the Non-Performing Asset percentage to 0.3%. Piramal Capital & Housing Finance offers Home Loans under various schemes. The lowest rate of interest offered is 11.00% p.a.

The borrower is legally bound to pay back the availed amount of Home Loan along with the interest charges within the stipulated time period. The total amount is divided by the loan term to get the equal monthly amount called the Home Loan EMI. The EMI is calculated using three parameters - principal amount, loan tenure, and rate of interest. The EMI schedule, also known as the repayment schedule, shows the repayment installments of the availed Home Loan.

The below table depicts the EMI schedule of Piramal Housing Finance Home Loan. The table shows the respective EMI amounts against different Home Loan quantum for different loan tenures. The rate of interest used for the preparation of the EMI schedule is 9.99% p.a.

As shown in the above table, the tenure is a very important factor for Home Loan EMIs. As the duration of the loan increases, the EMI drops significantly for the same principal amount.

However, opting for a Home Loan with the longest tenure can turn out to be really expensive. So, before going in for the lowest EMI or the maximum Home Loan term it is important to consider the EMI break-up schedule. The break-up of the EMI value shows the cost of the loan.

Below is the EMI break-up table of Piramal Capital & Housing Finance. The table shows EMI break-up for a Home Loan amount of Rs. 1 Lakh availed at the rate of interest of 9.99% p.a.

The above table shows the break-up of Home Loan into principal and interest of 1 lakh Home Loan. While the increase in loan duration brings down the EMI, the interest portion on the principal amount increases manifold. This makes the Home Loan very expensive. But going in a shorter duration loan will lead to an increased EMI which may put a financial burden on the borrower. Thus, it is very important to balance between Home Loan term, and EMI amount.

For example, the EMI per lakh for a 20 year Home Loan is Rs. 964. The figure comes down to Rs. 877 when the term of the loan increases to 30 years. But a Home Loan availed at 9.99% p.a. the amount of interest paid over 20 years is 1,31,446 as against 2,15,660 for Home Loan with 30 year maturity. As the interest part is only an expense, the higher the interest component, more expensive will be the Home Loan.

Additional Info: Also check HDFC Home Loan EMI Calculator

The IDBI Home Loan EMI Calculator Excel will give you an idea of the overall interest that will be payable at the end of the tenure. This will help you to evaluate the interest cost of the loan you are about to avail of. To calculate the interest, the formula applied is 

EMI = [P x (R/100) x {1+(R/100)}^N]/[{1+(R/100)}^(N-1)]

P is the principal

R is the rate of interest

N is the tenure.

For a given EMI, the overall interest that is payable will be arrived at with the formula. If you intend to cut down on the interest cost, you can either reduce the loan amount or reduce the tenure if you can afford a higher EMI. 

Additional Info: Looking for 25 Lakh Home Loan? Check EMI & Apply.

If the repayment of the Home Loan has to be made without a break throughout the tenure, you will have to assess the EMI that your monthly income can accommodate, along with the existing obligations and liabilities. You will also have to put aside a buffer amount out of the monthly income to provide for any emergencies in the future. Considering all this, you will have to arrive at the amount that is at your disposal to service the EMI of the proposed loan.

You should not forget the fact that after providing for the EMI, the net take-home should be a minimum of 40% to 50% of the gross income. To make all these adjustments before approaching the loan for a bank, you will have to have the affordable EMI ready. IDBI Bank Home Loan EMI Calculator makes this calculation possible. Besides this, there are several other benefits of the IDBI Home Loan Calculator.

• It is available to one and all free of cost.
• There is no particular skill required to use the IDBI Home Loan EMI Calculator. Any layman with no technical background will be able to use the home loan EMI Calculator.
• The only requirement to use the EMI Calculator is an internet connection.
• You will get an idea about the loan amount you are eligible for with the EMI that fits your budget. This will help you to look for a property with the available funds.
• Else, you will get an idea about the down payment you will have to make if you have to invest in a particular property of your choice.
• The EMI calculator will also give a break up of the principal and interest months so that you can plan your prepayments at a stage that will bring down the cost of the loan.
• EMI calculation will be made easy and will be error-free. You can vouch for a 100% accurate value.

Additional Info: Looking for 10 Lakh Home Loan? Check EMI & Apply.

A home loan EMI is a huge responsibility and very difficult to manage for such a long term. In between the repayment period, if there are any unforeseen expenses that are unavoidable, you will not be able to manage the EMI, and your credibility will suffer. To avoid such a circumstance, it is advised to evaluate the affordable EMI to service the loan promptly. The Home Loan EMI Calculator plays a vital role in calculating the EMI and giving 100% accurate results. You will benefit in the following ways by using the IDBI Home Loan EMI Calculator.

• You can get an idea about the additional burden on your monthly income and curtail unwanted expenses to accommodate the EMI.
• You can understand the fundamentals of the loan with the amortisation schedule. It is a chart that gives the break-up of the principal and interest apportionment month on month till the end of the tenure. With this, you will be able to understand at what stage the prepayments have to be made, and you can plan your finances accordingly.
• You can inculcate the discipline of managing your finances to provide for the EMI every month without fail and avoid repercussions of EMI missouts.
• You can use the IDBI Home Loan Calculator Excel several times to compare the EMI with different rates and choose the best deal.

Additional Info: You can also Check Banglarbhumi West Bengal Land Record

From the above chart, you can see how the EMI varies with the Home Loan Rate of Interest and amount. The rate of interest mentioned in the chart is the starting rate, i.e., the best rate offered for applicants who have a good Credit Score, high income, are employed with reputed institutions and are assured of a regular income. If you should know the eligible rate of interest applicable to your credentials, you will have to visit the nearest bank branch to get the information. Compare the interest rates and other charges before you decide to avail of the home loan.

The three major factors that influence the EMI of IDBI Home Loan are:

Loan Amount: IDBI bank provides a home loan up to 90% of the property value provided the other factors like the credit score and income are as per the eligibility. Even if you are eligible for a higher amount as per the parameters required to decide the eligibility, you should have enough disposable income to provide for the EMI that is required to service the eligible loan amount. The loan amount is a crucial factor to decide the EMI. The higher the loan amount, the higher will be the EMI.

Additional Info: Also check SBI Home Loan EMI Calculator

Rate of Interest: The EMI will vary as per the applicable rate of interest. If availed on a floating rate of interest, the EMI will be lower if the interest is low and will be higher if the rate of interest is high. It technically depends on the method of interest application. In a flat rate interest method, the rate of interest will be applied on the originally sanctioned loan and not on reducing the balance.

Prepayment, if made, will reduce the principal outstanding but will not reduce the cost of the loan as the interest is applied on the original amount, and the EMI will remain constant. Whereas if the reducing balance method is applied for interest calculation, prepayments can reduce the cost of the loan, and the EMI can be rescheduled if desired.

Tenure: Tenure is another crucial factor. If you opt for the maximum repayment period, the EMI will be the lowest but will increase the cost of the loan. To increase your eligibility, if you have opted for a higher tenure initially, you can reduce the tenure by making prepayments and closing the account before maturity.

Additional Info: Also check HDFC Home Loan EMI Calculator