Home Loan

Buying a home is a major financial decision, and most people rely on a home loan to fulfill this dream. A home loan EMI (Equated Monthly Installment) is the fixed amount you pay to the lender every month to repay your loan. It includes both principal and interest and continues until the loan is fully repaid.

Key Factors Affecting EMI

1. Loan Amount: Higher the loan, higher the EMI.
2. Interest Rate: Fixed or floating interest rates affect the EMI amount.
3. Loan Tenure: Longer tenure reduces EMI but increases total interest paid.
4. Down Payment: A higher down payment lowers the loan amount, reducing EMI.

Choosing the Right EMI Plan

• Lower EMI & Higher Tenure: Suitable for those who prefer lower monthly payments but will pay more interest over time.
• Higher EMI & Shorter Tenure: Helps save on interest and clear the loan faster.

Tips to Reduce Home Loan EMI

✔ Make a Higher Down Payment – Reduces loan amount and EMI burden.
✔ Opt for a Longer Tenure – Lowers EMI but increases total interest.
✔ Consider Loan Prepayment – Reduces outstanding principal and interest burden.
✔ Compare Interest Rates – Choose lenders offering lower rates.