Shriram Housing Finance Home Loan EMI Calculator

Shriram Housing Finance Limited is one of the few non-banking companies to provide technical services of the highest order. The official webpage of Shriram Housing Finance Limited offers access to different calculators to facilitate the calculation of EMI and loan eligibility.

• Home Loan Eligibility Calculator: Your Home Loan eligibility depends on your repaying capacity. NBFCs like Shriram Housing Finance Limited are flexible when it comes to determining Home Loan eligibility. Customers can gauge their eligibility by using these Home Loan eligibility calculators. The primary factors responsible for determining your repaying capacity are your income and existing liabilities. Entering this data into the Home Loan eligibility calculator helps to gauge the amount of Home Loan you qualify to get.
• Home Loan EMI Calculator: This calculator helps you to calculate the Home Loan EMI. Managing your house budget is a crucial aspect of life. Therefore, you need to know your loan repayment obligations. You can determine your Home Loan EMI by submitting the details of your Home Loan.

Using this calculator to understand your Home Loan EMI is elementary. Customers have to submit the minimum data about their Home Loans to determine their Home Loan EMI.

• The loan amount is a crucial aspect
• The rate of interest on the Home Loan
• The loan repayment tenure

On submitting these three variables, this calculator helps to determine your EMI. It can help plan your home budget better.

Additional Info: Also check DDA Housing Scheme

Shriram Housing Finance Limited calculated Home Loan interest on the reducing balance method. The ideal repayment method is always the EMI. The repayment of the EMI ensures servicing of the interest as well as a portion of the principal amount.

The Home Loan EMI comprises of two variable components, the interest repayment, and the principal amount repayment part. Any credit into the loan account initially goes towards reducing the interest. The balance amount is appropriated against the repayment of the principal loan outstanding.

In the initial stages of Shriram Housing Finance Home Loan repayment, the interest component will be high because of the higher principal loan amount. As you keep repaying the interest and part of the principal loan, it goes on reducing. Thus, you find that the principal repayment is spread across the entire loan tenure. However, the repayment of the EMI ensures that you pay the monthly interest amount in full every month.

Points to Note

• The EMI is in direct proportion to the loan amount and the rate of interest. As the loan amount increases, the EMI increases proportionately. Similar is the case with the rate of interest.
• The loan tenure and the EMI are in inverse proportion with each other. The longer the mandate, the lesser is the EMI.

Many customers confuse between the two terms, equated instalments and equated monthly payments. They are two different concepts.

• Equated Instalments: In this mode of repayment, the principal amount is divided into equal instalments depending on the loan tenure. If the loan amount is 10 Lakhs and the repayment period is 10 years, the principal repayment portion is 1 Lakh per year or 8,333 per year. Apart from the principal amount, the borrower has to pay interest. This interest is a variable amount that reduces every month. As a result, the equated instalment amount will vary every month. It will reduce monthly.
• Equated monthly instalments: In this concept, the monthly repayment amount remains constant, whereas the interest and the principal repayment amount will vary.

Both these methods of repayment have their pros and cons.

Benefits

• Equated instalments: The borrower repays a higher amount of principal loan every month. Hence, the overall interest liability reduces considerably.
• Equated monthly instalments: The monthly outflow for the borrower remains constant, thereby not affecting the budget of the customer.

Drawbacks

• Equated instalments: The monthly repayment amount varies in descending order. Hence, the borrower ends up paying higher amounts in the initial stages of repayment.
• Equated monthly instalments: As the monthly repayment amount remains constant, the borrower ends up paying a higher amount throughout the entire tenure of the loan.

• Calculate your EMI in advance to ensure that you can afford to pay it
• It also helps you in determining your eligibility
• You get an idea about the amount of EMI you have to pay for the Home Loan. Accordingly, you can adjust your budget.
• Knowing your EMI ensures that you are aware of the surplus funds on hand after the deduction of your EMI.
• The EMI Calculator helps to countercheck whether the financial institution is making the appropriate demand.

Additional Info: ICICI Bank Home Loan Customer Care Number

We have seen above that your income and other financial obligations affect your repaying capacity. Similarly, many factors affect your Home Loan EMI, as well.

• The loan amount: You calculate your Home Loan EMI on the amount of loan you avail. The more the loan, the higher is the EMI.
• The rate of interest: Your Home Loan interest is a critical factor that decides the EMI. A higher rate of interest results in a more significant EMI and vice versa.
• The loan repayment period: The loan tenure is in indirect proportion to your EMI. Thus, you have a lower EMI for an extended mandate and a higher one for a shorter repayment period.
• PMAY subsidy: PMAY borrowers are eligible to get an upfront interest subsidy from the Government. This subsidy is credited to the Home Loan immediately on its receipt. It results in a reduction in the principal loan amount. Hence, it affects the EMI calculation.

Shriram Housing Finance offers a fixed rate of interest as well as floating rates on Home Loans. It also has a Home Loan product with variable interest rates where the rate remains fixed for a specific period. Subsequently, it shifts to a floating rate of interest mode. Under such circumstances, the method of calculation of EMI is different.

• A fixed-rate of interest: As there is no change in the interest rate, the Home Loan EMI does not vary for the entire loan tenure.
• Floating rate of interest: The floating rate of interest connects with the market rates. Hence, the rates can fluctuate up and down. Accordingly, the EMI increases or decreases.
• Variable-rate of interest: Here, the rate of interest is fixed for a specific period. The EMI remains fixed during this tenure. Subsequently, the rate of interest switches to a floating mode. Thus, the Company recalculates the EMI accordingly.

Shriram Housing Finance permits the prepayment of the Home Loan. Under such circumstances, borrowers pay lumpsum amounts in advance, thereby reducing the principal liability considerably. Therefore, the EMIs for the residual period can change, provided the borrower submits a request to the Company.

Additional Info: Also check Documents Required For Home Loan