Home Loan for government employees
With Tata Capital, you can apply for a home loan for government employees in a few easy steps and get housing finance at competitive interest rates.
Disclaimer: The aforementioned values, calculations and results are for illustrative and informational purposes only and may vary basis various parameters laid down by Tata Capital.
When you take a home loan, you agree to repay the loan amount in Equated Monthly Instalments or EMIs. The EMIs that you need to pay for your home loan depend upon several factors, including loan amount, tenure, and home loan interest rate.
A home loan EMI calculator is a simple and effective tool that can help you evaluate the EMI amount that you need to pay every month to repay your home loan. You can use an online home loan EMI calculator to determine your housing loan EMIs within a few seconds. A housing loan EMI calculator is incredibly quick and easy to use.
To calculate your EMIs using a home loan calculator, you will need to enter your home loan principal amount, tenure, and rate of interest, and your house loan EMI will be displayed instantly. By using a house loan calculator, you will get an idea of the right loan amount and tenure so that you can pay your housing loan EMIs without straining your finances.
Using a home loan EMI calculator online is the easiest way to calculate home loan EMI. You can simply enter your home loan amount, loan tenure, and the applicable interest rate in a house loan calculator, and your housing loan EMI will be displayed instantly.
For example - For a principal home loan amount of Rs. 20,00,000 borrowed at an interest rate of 10% per annum and for a tenure of 10 years (which is 120 months); home loan EMI can be calculated as follows - [20,00,000 x 10 x (1+10)120]/ [(1+10)120-1], which is equal to Rs. 26,430 per month. .
You can also use the following mathematical formula to calculate your house loan EMI:
EMI = [P x r x (1+r) ^n]/[(1+r) ^n-1]
Wherein ‘P’ is the principal home loan amount, ‘r’ is the applicable home loan interest rate, and ‘n’ is the number of installments you need to pay or loan tenure in months.
House buying is a tedious and complex process that involves huge financial transactions. Although a home loan can help you buy a house with a small down payment, you still need to ensure that your home loan EMIs aren’t straining your monthly budget.
With a home loan EMI calculator, you can know your home loan EMIs in advance and select your home loan amount and tenure accordingly. With accurate EMI calculation, you can plan your budget in a way that your other monthly expenses aren’t affected.
A housing loan EMI calculator can therefore prove to be an essential financial tool that can help you with your house purchase.
A home loan calculator helps you know the EMIs that you need to pay for your home loan within a few seconds. Several
lending institutions offer home loan EMI calculators online to make your home buying process easier. Here are a few
benefits of using a home EMI calculator:
The home loan EMI is inversely related to the home loan tenure. It means that the higher the home loan tenure, the lower will be the EMI amount, and vice versa. Let us understand this with the help of an example - Consider three different principal amounts and three different tenures for the same interest rate of 8.75% per annum.
The table below depicts that home loan EMI reduces as the tenure increases.
Principal Amount | 10 years | 15 years | 20 years |
---|---|---|---|
Rs. 10,00,000 | Rs. 12,668 | Rs. 10,143 | Rs. 8,997 |
Rs. 20,00,000 | Rs. 25,335 | Rs. 20,285 | Rs. 17,995 |
Rs. 50,00,000 | Rs. 63,338 | Rs. 50,713 | Rs. 44,986 |
Your home loan EMI comprises the principal component and the interest component, wherein the home loan principal component is the amount that you’ve borrowed from the lender, and the interest component is the amount you need to pay over and above the principal loan amount. This interest amount is calculated based on a specified home loan interest rate for a fixed tenure.
In the initial months of the loan tenure, the interest component is significantly higher in home loan EMIs as compared to the principal component. Gradually the interest component keeps on decreasing, and in the latter months, home loan EMIs mainly comprise the principal component. However, the EMI amount remains constant during the entire loan tenure.
You can check out your home loan amortization schedule to understand how your EMIs are broken up over the tenure of your home loan.
A home loan amortization schedule is a table containing all details related to a home loan repayment. It begins with the details of the outstanding principal home loan amount, followed by the details of the scheduled payments or EMIs that the borrower will have to pay at fixed intervals.
Then, the total interest and the principal amount paid by the borrower are displayed. The last row of the amortization schedule shows the closing balance that will be carried forward to the next period.
Considering that you have taken a home loan for Rs. 50,00,000 for 20 years at a 10% interest rate, this is what your annual amortization schedule will look like:
Year | Opening Balance | EMI*12 | Interest paid yearly | Principal paid yearly | Closing Balance |
---|---|---|---|---|---|
1 | 50,00,000 | 5,79,013 | 4,96,276 | 82,737 | 49,17,263 |
2 | 49,17,263 | 5,79,013 | 4,87,612 | 91,401 | 48,25,863 |
3 | 48,25,863 | 5,79,013 | 4,78,042 | 1,00,971 | 47,24,891 |
4 | 47,24,891 | 5,79,013 | 4,67,469 | 1,11,544 | 46,13,347 |
5 | 46,13,347 | 5,79,013 | 4,55,788 | 1,23,225 | 44,90,122 |
6 | 44,90,122 | 5,79,013 | 4,42,885 | 1,36,128 | 43,53,994 |
7 | 43,53,994 | 5,79,013 | 4,28,631 | 1,50,382 | 42,03,612 |
8 | 42,03,612 | 5,79,013 | 4,12,884 | 1,66,129 | 40,37,483 |
9 | 40,37,483 | 5,79,013 | 3,95,488 | 1,83,525 | 38,53,958 |
10 | 38,53,958 | 5,79,013 | 3,76,270 | 2,02,742 | 36,51,216 |
11 | 36,51,216 | 5,79,013 | 3,55,041 | 2,23,972 | 34,27,243 |
12 | 34,27,243 | 5,79,013 | 3,31,588 | 2,47,425 | 31,79,818 |
13 | 31,79,818 | 5,79,013 | 3,05,679 | 2,73,334 | 29,06,484 |
14 | 29,06,484 | 5,79,013 | 2,77,058 | 3,01,955 | 26,04,529 |
15 | 26,04,529 | 5,79,013 | 2,45,439 | 3,33,574 | 22,70,955 |
16 | 22,70,955 | 5,79,013 | 2,10,509 | 3,68,504 | 19,02,451 |
17 | 19,02,451 | 5,79,013 | 1,71,922 | 4,07,091 | 14,95,361 |
18 | 14,95,361 | 5,79,013 | 1,29,215 | 4,49,718 | 10,45,642 |
19 | 10,45,642 | 5,79,013 | 82,203 | 4,96,810 | 5,48,832 |
20 | 5,48,832 | 5,79,013 | 30,181 | 5,48,832 | 0 |
Missing to pay the EMI for your home loan can result in a late payment fee of 1% to 2% of the due EMI amount. If you do not pay your EMI for up to 90 days, you may become a Non-Performing Asset (NPA) and receive legal notice. In addition to this, your credit score may also be affected.
Remember to use the home loan EMI calculator and pick an EMI amount you can comfortably pay to avoid penalties and hassles later.
Yes, you can pay your home loan EMI early. This is known as prepayment or foreclosure. However, you will have to pay the prepayment and foreclosure charges, as applicable.
You can choose any date for your home loan EMI. However, it can help to stick to a date close to when you receive your salary every month. This helps ensure that you pay your EMIs on time. For instance, if you receive your salary on the 1st, you can pick the EMI date for the 5th.
If you pay more than the fixed EMI for your home loan, the extra money will be considered a prepayment on the loan. The excess amount will be deducted from your principal amount, and your subsequent EMIs will be adjusted accordingly. You may also pay prepayment charges depending on the excess amount paid. It is advised to refer to the home loan amortization schedule or use a home loan EMI calculator to understand your EMIs and avoid over or underpaying.
The EMI can be altered if your credit score improves or if you prepay a part of the loan. You can also opt for a step-up/step-down EMI plan where you pay lower/higher EMIs in the initial stages of your tenure and gradually increase/decrease over time. A home loan EMI calculator can help you understand these options and their impact on your finances.
Yes, floating interest rates can impact the EMI every month. Floating interest rates can fluctuate based on market conditions. Floating interest rate home loans are linked to the Reserve Bank of India’s (RBI) repo rate hikes, which may change over time. Make sure to use a home loan EMI calculator when deciding on a fixed and floating-rate home loan to make an informed decision.
Yes, you can choose from part or full prepayment of your home loan to pay your home loan more quickly. However, you would have to pay the prepayment charges on your home loan. Make sure to use the home loan EMI calculator to understand the impact of these charges on your EMIs.
Home loans with longer terms have consequently lower EMIs as the amount gets divided into several years. If you wish to pay a lower EMI, you can choose a long loan tenor. You can see the actual costs of your EMIs depending on your choice of home loan tenor on the home loan EMI calculator.
Yes, you can make online payments for your home loan. You can link your bank account and set up automatic payments to ensure timely payment of your EMIs. You can also make payments through other payment modes, such as debit cards, Unified Payments Interface (UPI), etc.
If you are unable to pay the home loan EMI on time, you may be given a grace period, also known as the home loan moratorium period. You do not have to make any payments during this time. However, your repayment history, credit score, loan amount, tenure, and other similar factors determine whether or not you qualify for a grace period. It is advised to pick a loan amount and tenor using the home loan EMI calculator that seamlessly fits into your budget to avoid such a situation in the future.
You may be able to change the frequency of your home loan EMIs, depending on the duration and amount of your loan. It is best to discuss this at the time of loan application. It is also advised to use the home loan EMI calculator before selecting a payment frequency to understand its long-term impact on your finances.