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INTERSTING Home Loans

Tired of increasing EMI’s of Home Loan & you think there is no

respite ? ?

“INTEREST”ing Home Loans

TO

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You always thought your loan to be a…

Investments. Hedge against Assets. Payable through Increments. Perceived Valuations of market

rate. Comparative Lifestyle

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And it always Resulted in..

Ever changing Market Scenario which is not in your favor.

Lesser closing balance in S/B A/c. Repetitive Head Ache. Higher Commitments at Office. Lesser Involvements at Home. Fatigued and Stressed.

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Basics of a HOME LOAN

Principal = Loan Amount – (1) Interest = ROI x Principal – (2) Principal + Interest = EMI (1) (2)

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Home Loan Composition

P r i n c i p a l

Period Of Loan

Rate of Interest

Collaterals

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EMI =

Look at it this way…

+Interest

Principal

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Loan of Rs.20lacs @ 9 % for 20 yrsEMI = 17,995/-

EMI(17995)=INT(15000)+PR(2995)

Example # 20-9-20

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Loan of Rs.20lacs @ 10% for 20 yrsEMI = 17,995/-

EMI(17995)=INT(16666)+PR(1329)

Rate hike by 1%

DID YOU MAKE THE DIFFERENCE OUT ?

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Loan of Rs.20lacs @ 11% for 20 yrsEMI = 17,995/-

EMI(17995)=INT(18333)+PR(-338)

Another 1% rise

?

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Economic Scenario

Ratio’s of RBI leads to change in Base Rate or RPLR.

It results an increase in Interest component in EMI amount.

Leads to increase in Tenure or Forced Principal payments.

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You Implement..

Pay additional Principal regularly on bi-annual or annual basis.

This makes the EMI = Principal + Interest equation always in your favor.

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They Execute Generally banks increase the

tenure if permissible. Else they will increase the EMI

amount if permissible. Only Alternative left is Forced

Principal payments.

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For any otherhelp/suggestion/consultation on the topic…

Contact Jayesh @ +91 9879 5153 68 homefininc@gmail.com