Calculate Repco Home Finance EMI

The Repco Home Finance Limited is abbreviated as RHFL which is headquartered in Chennai, Tamil Nadu. It is a popular Home Loan financial institution which has its roots back in the year April 2000. This RHFL is registered with the National Housing Bank and it is currently operating with 106 branches and 36 satellite centers across the south and central India.

Repco Home Finance is committed to provide continual customer services along with products which are unique from other banks. RHFL is different from other banks as it provides various housing loan schemes for its customers designed on the basis of the financial requirements of the customers. Repco has a robust customer support initiative which makes it easier for the applicants to apply for a Home Loan which works best for them.

You can also Apply for 25 Lakh Home Loan

Calculating the equated monthly instalment (EMI) even before applying for a Home Loan is very important since it gives you an idea about the expenses that you are bound to make on a monthly basis. The EMI Calculator helps you to try different combinations of the Home Loan parameter and then gives you results of the calculated EMI which suits your financial requirements to the most.

The EMI is nothing but the function of the property value and the capacity to pay on your own for the Home Loan. The EMI Calculator helps you to ascertain the EMIs and then plan your finances accordingly so that you do not burden yourself with a financial crunch.

The EMI is an internal part of the Home Loan availed. It involves principal as well as interest components to be paid each month till the end of the stipulated tenure. Every month the EMIs are to be paid on a particular date which is fixed in advance till your Home Loan is completely repaid.

Results of RHFL Home Loan EMI Calculator at different tenures and amounts at 8.30% interest rate:

The above table shows that with the lowest home loan interest rate, the EMI differs on the basis of the Home Loan period which ranges from 15 years and 20 years. The EMI is higher when the Home Loan tenure is shorter and the EMI is lesser when the Home Loan tenure is higher.

The EMI includes the principal amount and the interest component. Even though the EMI stays constant, the proportion of interest and principal repayment will differ with every payment. With each EMI paid, the proportion of the principal amount repayment in the EMI keeps going higher and the interest component keeps decreasing. 

Purpose of Home Loan: The RHFL Home Loans can be utilised for various purposes like constructing or buying a new house, purchasing a plot, repairing/renovation/extension of the existing house.

Key Features

• RHFL Home Loans can be availed by both salaried employees and self-employed persons
• Loan to Value (LTV) ratio stands at maximum 85% for construction and 80% for the purchase of a residential property.
• There are special schemes and discounts for women applicants
• The rate of interest on home loan starts at 8.30%
• The Home Loan borrowers need to be minimum 21 years of age
• The bank collateral is the property that you are planning to build or purchase
• The Home Loan repayment tenure at Repco ranges from 5 years to 20 years

Processing Fees: The processing fee that is charged is 1% of the loan amount

Special Schemes:  There are special schemes for senior citizens, salaried, NRIs, women, and existing borrowers.

Some of the special schemes are:

• Dream Home Loan
• Repco Rural
• NRI Housing Loan
• Super Loan
• Home Makeover Loan
• Plot Loans
• Prosperity Loan
• Fifty Plus Loan
• New Horizon Loan
• CRE Loans

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The formula used by the EMI Calculator is:

P*r* (1+r)^n/([(1+r)^n]-1)

Here, for RHFL Home Loans:

P = Loan amount

r = Rate of interest/month, which starts at 8.30% at present

n = tenure in months, which can be maximum 240 months for RHFL Home Loans

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• The amount of the loan: The principal amount that is borrowed from the bank to fulfil the financial need is called the loan amount. The higher is the amount of loan, the higher is the EMI payable.
• Rate of interest: It is the rate at which the interest is applied on the principal amount of the loan borrowed. The higher is the rate of interest, the more is the EMI and it will increase the total cost of the loan. RHFL charges the interest starting at 8.30% on Home Loans.
• Type of loan opted: The EMI of the Home Loan depends on the type of loan availed as every scheme may involve different interest rate and tenure.
• Occupation: The interest rate also varies on the basis of the occupation of the applicant which will affect the EMI as well. The banks charge a higher interest rate for self-employed individuals when compared to the salaried ones.
• Loan tenure: Loan tenure is the duration in which you need to repay the Home Loan availed to the bank. The longer is the loan period the lower is the EMI to be paid to the bank on a monthly basis. RHFL offers the Home Loan for a maximum period of 20 years.
• Relationship with customers: RHFL offers different schemes and discounts for the existing customers in order to maintain a cordial relationship with them.

Additional Info: Also check AnyRoR Gujarat Land Record

• Calculate the loan amount to be borrowed: One of the first steps to take care when you decide to build or purchase a house is to work out the right amount of loan that you would need to borrow. You need to compute the total amount that you will take as a loan and the amount you are comfortable to pay as monthly EMI. These two aspects will help you to make the total financial planning that you need to do in the near future. This is the time when you start planning in order to manage your cash flows in a better way before applying for any sort of loan.
• Calculate the RHFL Home Loan eligibility: The RHFL Home Loan eligibility is based on the property's value and borrower's loan repayment capacity (based on their monthly income). RHFL provides a maximum LTV up to 85% of the value of the property. The remaining amount is to be arranged by the applicant.
• Review your current responsibilities and obligations: Before taking a Home Loan it is advised that you make sure that you evaluate and calculate your current monthly expenses which include any EMIs that you are already paying on any current loan. This will help you to estimate the amount of EMI that you can pay comfortably on a monthly basis and then you can decide the right Home Loan tenure that is suitable as per your financial requirements.
• The RHFL estimates the fixed income to obligations ratio in order to calculate the maximum EMI that you can service on the basis of your current income and monthly expenses. The RHFL applies a certain ratio to the income in order to estimate the monthly expenses and then it adds the other EMI obligations to compute the fixed obligations. The proportion of fixed income to calculated fixed obligations will provide your FOIR (Fixed Obligations to Income Ratio). The RHFL lends up to a maximum FOIR of 0.65.

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Usually a Home Loan EMI remains stable and fixed until the applicant requests for a change in the same. When it is changed, it should be approved from the RHFL loan department which is subject to loan eligibility conditions with some nominal charges applicable.

With the change in the rate of interest

• When the floating interest rate on your loan increases, RHFL will keep the EMI constant and increases the tenure of the loan, so that you pay the same EMIs. In case the rate of interest increases to a level that the newly revised Home Loan period is more than the maximum permitted limit by the bank, it increases your EMI amount.
• The Home Loan EMI will increase with every disbursement when the partly disbursed loans are availed under tranched EMI scheme.

With prepayment of the loan

• RHFL levies zero charges on the prepayment on floating rate Home Loans
• When there is a loan pre-payment made then the outstanding balance of your principal loan amount reduces. In such a situation you may either choose to keep the EMI same and reduce the period of the Home Loan or you can reduce the EMI and keep the loan duration same.

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When you wish to borrow a Home Loan from RHFL, the first thing that you should do is to calculate the EMI that you would be paying every month to repay your Home Loan.

Some of the benefits of computing the EMI are:

• In a situation when the EMI turns out to be higher than your monthly budget then you can apply for a lower loan amount that will fit into your monthly budget so that paying your EMIs is affordable and easy.
• On the basis of the EMI, you can also choose to prepay the Home Loan when you have surplus funds so as to ease your financial burden.
• It is always better that you know your EMI well in advance so that it will help you to plan your finances in a better way.

Additional Info: Also check SBI Home Loan EMI Calculator