Having gone through the factors that can influence the home loan rate, you may feel there isn’t much you can do about them. Yet, fortunately, you can. Given below are a few simple yet effective tips that can help decrease the EMI burden on your shoulders.

In an initial couple of years of the house loan, you would spend further on interest and much less on principle. Thus, making prepayments on your house loan will gradually reduce your remaining principal, lowering your interest rate.

With the option of repaying your loan in as many as 30 years, home loans are long-term commitments. But when you choose a shorter term, you can keep the interest accumulation in control.

A score over 800 is regarded to be a good score and can greatly help in reflecting your creditworthiness.

After taking the loan, if you feel you are in a better position to clear the EMIs you can always go for an EMI revision.

Before making your decision, make sure you do your homework and research on the best home loan interest rates deals that are available in the market.

Bonus Tip: Make use of the Piramal Finance Home Loan EMI calculator to finalize the EMI amount that suits your budget.

Our Home Loan EMI calculator enables homebuyers to calculate the monthly payment required to settle their Line Of credit. While using the house loan EMI estimator, simply enter the amount owed, the interest rate, and the repayment period. The estimator will end up displaying the overall interest paid and the estimated EMI.

A house loan interest rate is the cost levied to a customer by us for the expenditure of the principal amount. Your month-to-month EMI on the home loan is determined by the lending rates on the loan. The longer the home loan repayment tenure, the higher the interest amount.

We determine the home loan amount you’re eligible for by considering mainly your repayment capability and income. Other factors that we also consider are your qualification, age, spouse’s income (if any), number of dependents, continuity of occupation, and credit history.

The current home loan interest rate at Piramal Finance starts from 9.5% per annum. On average, home loans are charged at this standard interest rate.

If there is a predictable decrease in the interest rates, then a fixed rate may not be suitable. However, on the other hand, floating rates are susceptible to market volatility and thus, come with the risk of an increased interest accumulation.

In such a scenario, as a home loan borrower, you need to decide on your suitability. The fixed housing loan interest rate is generally about 1% to 2.5% more than the floating rate. However, you have the option to switch from one type to another during the tenure of your loan.

Use the Formula:
If you are good at the traditional ways of calculation, you can use the given formula to calculate the EMI on your home loan:
P*R*((1+R)^n)/(1-(1+R)^n)
Here, P stands for Principal loan amount
R is the Rate of interest
n is the Tenure of the loan (in months)