EMI for a Home Loan
Your EMI for a Loan -This blog is about EMI for a home loan. Your EMI for a Loan What is Home Loan EMI? 1. Home Loan EMI is the amount that is paid to the lender for the purpose of repayment of the borrowed loan to finance your home. 2. At the time of availing a home loan, EMI is calculated by your lending institution based on the borrowed amount, sanctioned rate of interest and loan tenure. How is a Home Loan EMI calculated? 1. Home loan EMI is calculated by banks on the basis of principal, interest to be paid and tenure. 2. In the initial years of the loan, a major portion of the EMI comprises of interest payable since the principal amount is large. 3. As the loan matures, the interest component decreases while the principal component gradually increases. Your EMI for a Loan of Rs.1 lakh Tenure 5 Years 10 Years 15 Years