Shubham Housing Development Finance Company is a private mortgage lender providing Home Loans to individuals with informal income. The first Indian organisation to outdo the conventional document-based underwriting, the company with its customised credit program initiated the process of issuing Home Loans to individuals without any income proof. Today the company enjoys a strong pan India presence. It operates in 73 cities located in 9 Indian states and has a total number of 84 branches.
Housing Loan is the core business of Shubham Housing Finance. With more than 2,500 crore disbursed as Shubham Housing Finance Home Loans, the company has helped over 35,000 Indian households who are outside the formal tabulated income circle. The company provides a wide array of financing solutions for purchase, construction, and extension of the property. The Home Loans offered by the company range between 11.90% to 16% p.a.
Additional Info: Looking for 25 Lakh Home Loan? Check EMI & Apply.
Shubham Housing Finance issues Home Loans under two heads. The applicants can apply for the most appropriate Home Loan scheme depending upon their personal requirements:
|Product Name||Shubham Housing Finance - Home Loans||Shubham Housing Finance - Home Improvement Loans|
|Purpose||Purchase, construction, and extension of the property.||Renovate, refurnish, and repair the existing property.|
|Loan amount||Up to 20 Lakhs ( 50 Lakhs for some cities)||Up to 10,00,000|
|Interest rate||11.90% and 13.80% p.a||17% and 18% p.a|
|Tenure||20 years||10 years|
|Processing charges||Up to 3% of the loan amount||Up to 3% of the loan amount|
|Age criteria||Individual must be at least 21 years of age when applying for the loan, but should not be more than 65 years of age at the time of maturity of the loan.||Individual must be at least 21 years of age when applying for the loan, but should not be more than 65 years of age at the time of maturity of the loan.|
Additional Info: Also check DDA Housing Scheme
EMI is the Equated Monthly Instalment that the borrower is required to pay in order to repay a Home Loan. The EMI amount is paid every month for the entire term of the Home Loan. EMI consists of two components - principal and interest. The EMI is paid on a pre-determined fixed date.
Additional Info: Looking for 10 Lakh Home Loan? Check EMI & Apply.
The borrower is required to pay back a fixed amount every month. This monthly payment is the EMI, which is ascertained through a mathematical calculation using three parameters - principal amount, loan tenure, and rate of interest. The EMI schedule makes the Home Loan applicant aware of the amount of outflow that will be incurred every month to repay the loan.
The below table depicts the EMI schedule of Shubham Housing Finance Home Loan. The table shows the EMI amount for different Home Loan quantum and durations. The rate of interest remains static at 11.90% p.a.
The above table highlights the importance of tenure of Home Loan. As seen, the EMI amount is significantly high in shorter durations and keeps on reducing as the Home Loan term increases for the same loan amounts.
However, opting for a low EMI is only one side of the coin. The EMI constitutes of two components - principal and interest. The break-up of the EMI value actually depicts the cost of the loan. As the loan tenure increases, the Interest Rate on Home Loan increases significantly, making the Home Loan expensive.
Shown below is the EMI break-up table of Shubham Housing Finance. The table is prepared for a Home Loan amount of 1 Lakh at the rate of interest of 11.90% p.a.
|10 years||15 years||20 years|
|EMI per Lakh||Rs. 1,429||Rs. 1,194||Rs. 1,094|
|Total amount repayable to bank (P+I)||Rs. 1,71,472||Rs. 2,14,874||Rs. 2,62,589|
|Total interest paid over the loan tenure||Rs. 71,472||Rs. 1,14,874||Rs. 1,62,589|
|Principal to Interest Break-Up||54.7 : 45.3||42.8 : 57.2||34.5 : 65.5|
The above table shows the division of principal and interest for a Re. 1 Lakh Home Loan. As the loan term increases, the interest chunk on the Home Loan increases considerably, making the Home Loan expensive. So it is very important to balance between loan term and EMI payable.
For example, the EMI per Lakh for a 10 year Home Loan is 1,429, which drops considerably to 1,194 per Lakh for a 20 year Home Loan. However, with an interest of 11.90% p.a. on the Home Loan, the amount of interest paid over 10 years is 71,472 as against 1,62,589 over 20 years. As the interest part is only an expense, longer loan duration makes the Home Loan expensive.
Additional Info: Also check HDFC Home Loan EMI Calculator
EMI Calculator is a tool that uses the mathematical formula to clearly ascertain the EMI amount that is required to be paid by the borrower for a stated principal amount, loan tenure, and rate of interest.
The mathematical formula used to calculate a Home Loan EMI is:
[P x R x (1+R)^N] / [(1+R)^N-1]
P = Principal loan amount
R = Rate of interest
N = Loan tenure in months
For Shubham Housing Finance Home Loan, the values for each are:
P = Maximum up to 50 Lakhs
R = 13.5% to 18%
N = the maximum loan tenure is 20 years, i.e., 240 months
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The Shubham Housing Finance Home Loan EMI Calculator on MyMoneyMantra is helpful and beneficial in numerous ways. These include:
Additional Info: Also Check LRD Loan
The Home Loan EMI is a result of three variables - principal amount, Home Loan tenure, and rate of interest charged by the lending institution. Any change in the three will cause a change in the EMI. However, there also exist additional factors that have a direct impact on these variables.
The most common factors have been listed below:
Additional Info: Also check ICICI Home Loan EMI Calculator
EMI is to be paid every month, over a long period of time. So, it is important that the additional burden can be comfortably accommodated with no financial stress.
However, it is also important that the EMI should not be too low as it will increase the loan duration, making it expensive. Here are guidelines that will help you reach the ideal amount of EMI:
Additional Info: Also check Pradhan Mantri Awas Yojana
The Home Loan EMI does not change unless requested for. Home Loans issued on floating rates of interest can adjust the increase or decrease in the total payable value against the loan tenure without making changes to the EMI. However, in cases where the borrower will attain the maximum age before the loan is liquidated, the tenure is kept unchanged, and the EMI amount is recalculated.
Additional Info: Also check SBI Home Loan EMI Calculator
Shubham Housing Finance allows its Home Loan borrowers to prepay Home Loans. Upon every lump sum prepayment of the principal amount, the outstanding principal amount is reduced. The borrower then has an option to continue with the same EMI, but a reduced loan term or pay the remaining Home Loan with a recalculated EMI over the original loan tenure.
Additional Info: Also check Rs. 80 Lakh Home Loan EMI
Applicants applying for Shubham Housing Finance Home Loan must fulfill the following conditions:
The applicant can apply for a Shubham Housing Finance Home Loan to:
Shubham Housing Finance Home Loan is available at a rate of interest, starting from 11.90% p.a. whereas the interest rate for the Home Improvement Loan starts at 17%.