Flexi EMI Home Loan
Often, young customers of home loan products get into a dilemma concerning their ability to service a home loan. Their concerns are legitimate as they have just started out on their careers and they cannot afford a large EMI to repay the loan. This is where we at Tata Capital come to your help with innovative plans to help you realize your dream of owning a home early in life. We offer you Flexi Home Loans which have an element of variability in the EMIs to be paid during the tenure of the loan.
What is Flexi EMI Home Loan ?
A flexi EMI home loan is a home loan that has flexible EMI options to repay the loan. For instance, if you are young and have started earning and hope to establish your career and earn more as you grow older, we offer you the Flexi EMI Home Loan. This loan allows you to increase your EMI every year to keep pace with your increased earnings. By this way, you could clear off the loan much faster than if you were to maintain a constant EMI set at the beginning of the tenure.
Is Flexi EMI Home Loan advantageous for me ?
A flexi EMI loan is a boon to borrowers who hope to increase their income every year. The benefits include
A flexi EMI loan throws up more viable options for a comfortable repayment of your home loan.
The following example shows how a flexible EMI option helps you to reduce the tenure as well as the interest paid
Terms of the Flexi EMI loan
|Loan amount||Rs. 10,00,000|
|Loan tenure||20 years|
|Mortgage interest rate||10%|
|Annual instalment incremental rate||5%|
In the above example, the following are the results
|Repayment Frequency |
Installment Amount in Rs
|Traditional Constant EMI in Rs |
|Step up EMI in Rs |
|Year 1 monthly EMI||9,650||9,650|
|Year 2 monthly EMI||9,650||10,133|
|Year 3 monthly EMI |
---and so on
|Total interest payable||13,14,445||8,04,678|
|Loan tenure||20 years||12 years|
From the above example, you can infer that
Thus, opting for a flexi EMI loan you can repay the loan much faster and at lower total home loan interest amount. As you can see from the example you can plan your EMI increase (at 5% in the example) based on your annual increment in salary if you are a salaried person. If you increase EMI every year by say 10%, then you can clear the loan in about 9 years.
Interested in applying for flexi EMI Home Loan ?
We at Tata Capital understand your need for minimizing expenses related to your home loan. We charge you minimal processing fees and charges. Our eligibility conditions are easy to meet. We also ensure our formalities are very simple and easy to conform to so that the process of availing a home loan is as easy as saying 1, 2, and 3.
Processing fees and charges inclusive of statutory levies
The elements of fees and charges depend on the particulars of the loan you opt for and include
Eligibility and documents
Our home loan eligibility criteria is easy to meet accompanied by standard documents based on whether you are a salaried individual or self-employed professional or self-employed non-professional, and they are
The documents required are
How to apply for Home Loan
If you satisfy our age eligibility condition applying for the home loan is quite simple and involves
Taking a Tata Capital home loan is as easy described above and what is more you can choose your own repayment schedule.