Saraswat Bank Home Loan EMI Calculator

Saraswat Co-operative Bank Ltd. (popularly known as Saraswat Bank), is an urban co-operative bank operating since 1918. The roots of the bank lie in the state of Maharashtra. It is the first co-operative bank to offer merchant banking services. The bank also received a license to carry out a foreign exchange business in the year 1979.

The bank offers services that are technically supported while keeping the tradition alive as the bank intends to give the best of both worlds to its customers. The bank offers an array of retail products and services, and Saraswat Bank Home Loan is one such retail product.

You can now cherish your dream of owning a home with Saraswat Bank's Vastu Siddhi Home Loan. The bank offers the loan at a competitive interest with flexible repayment options.

The bank offers various types of Home Loans. They are:

• Vastu Siddhi Home Loan
• NRI Home Loan
• Home Loan Top Up

You can also apply for Saraswat Bank Loan Against Property Online and check eligibility, interest rates and necessary documents required.

The lowest EMI for Saraswat Bank Home Loan is Rs. 874 per lakh (for 20-year tenure @ 8.60% rate of interest) as on date.

The table below will give details of EMI for different loan amounts for different tenures at 8.60% rate of interest and  9.20% rate of interest:

With the table showing EMI for two different interest rates, you can get an idea that even a small difference of 0.25% in the rate of interest can have a great impact on the cost of the loan if the tenure is longer. You would have paid more than double the actual loan borrowed if you have chosen a longer tenure.

The features of Saraswat Bank Home Loans are mentioned below:

1. Vastu Siddhi Home Loan

A pre-sanctioned car loan will be granted for all Vastu Siddhi Home Loan customers. This facility is available for customers who avail of a minimum Home Loan of 50 Lakhs and have a net take-home salary of 30,000 after providing for all the commitments, including the Home Loan EMI. The maximum loan permitted will be 6 Lakhs.

Also, a pre-sanctioned credit card will be provided for Vastu Siddhi Home Loan customers. The credit limits set will be as follows:

• For a Home Loan up to 25 Lakhs: 50,000
• For a Home Loan above 25 Lakhs and up to 50 Lakhs: 1 Lakh
• For a Home Loan above 50 Lakhs and up to 70 Lakhs: 2 Lakhs

2. Home Loan for NRIs

The features of Home Loan for NRIs will be similar to the Home Loan provided for resident Indians, but with a few additional conditions as detailed below:

• Non-Resident Indians and Persons of Indian Origin are eligible for the loan
• In addition to the security by way of equitable mortgage of the property acquired with the loan, a lien on other assets of the borrower will be stipulated on a case to case basis, if required.
• The interest on the Home Loan will be as per the guidelines of RBI from time to time
• The repayment for the loan should be made by inward remittances through normal banking channels. The repayment can also be done through funds available in NRE/NRO accounts or through the rental income of the property. Close relatives of the borrower, as defined under Section 6 of the Companies Act 1956, are allowed to make the repayment of the EMI along with other charges through their local account.

3. Home Loan Top-up

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

EMI Calculator is a financial tool that is user-friendly and enables calculation of EMI with three inputs, i.e., loan amount, loan tenure, and rate of interest. It saves you the effort to calculate the EMI manually, which is a very strenuous and time-consuming process. Also, you may not get the exact EMI on manual calculation as there are chances of making mistakes.

The formula adopted to calculate EMI is:

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

P stands for Principal

R stands for rate of interest

N stands for the loan tenure

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EMIs that are fixed at the time of availing a loan do not remain constant throughout the repayment tenure. There are various factors that amount to the fluctuation in the EMI.

• Change in rate of interest: If you have opted for a floating rate of interest, the EMI will change as and when there is a change in the rate of interest. If the rate of interest is higher, then the EMI will be higher. If there is a decrease in the rate of interest, then there will be a decline in the EMI level.

If you have opted for a fixed rate of interest, then the EMI will change when the rate of interest is reset over a period of time that differs from bank to bank.

If you have opted for a combination of fixed and floating rates of interest, the Rate of Interest on Home Loan will be fixed initially and then it is converted to floating after a pre-set period. When the transition happens, the EMI automatically will change.

• Prepayment of the loan amount: When you make a prepayment for the Home Loan, the principal amount reduces correspondingly. You can then either opt for a reset in the EMI or opt for lowering the tenure of the loan. If you intend to balance your monthly budget, then you can go for an EMI reset, else you can opt for reducing the tenure.
• Change in tenure: Sometimes, you would want to go for a change in the loan tenure. Assume that you have opted for a shorter tenure initially based on your affordability at the time of availing the loan and later, due to other commitments, you may not be able to pay the same EMI. If you negotiate with your bank for the change in tenure, there will a change in the EMI as well.

When you opt for a change in loan tenure along with the balance transfer, then the EMI will automatically change.

• Step-up EMIs: In step-up EMIs, initially the EMIs will be kept low and will increase periodically through the tenure of the loan.

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While deciding the right EMI, the basic things you have to consider are your affordability and the compliance of EMI to the Net Monthly Income ratio.

• You make a list of all your present commitments and assess the residual amount available to provide for the Home Loan EMI.
• Once you have the affordable amount, use the EMI Calculator and try several variations till you arrive at the interest and the loan amount that would match your affordable amount.
• If you have any additional sources of income, like the rent, dividends, and deposit interest, include these while arriving at the affordable amount.
• The loan amount is based on the value of the project. There will be a percentage of margin set for which you will have to provide.
• You should have an idea of how you would arrange for the margin amount before applying for the loan. If you are able to make a higher down payment, you can reduce the loan amount and the EMI.
• Choose tenure based on the loan amount and your age. If income from all the sources will enable you for a higher monthly payout, choose the shortest tenure that will match the available funds to provide for the EMI.
• If you need a higher amount and your income is not sufficient for the kind of amount, then your family members with regular income and a good score can be co-borrowers for the loan and their income will be considered to arrive at the Home Loan Eligibility.

In a nutshell, you try various options to choose an EMI that will not put you into a financial crisis later in your life.

Additional Info: Also check SBI Home Loan EMI Calculator