Home Loan Overview:
A home loan, also known as a mortgage, is a financial arrangement that allows individuals to purchase a home without having to pay the entire cost upfront. Instead, the borrower obtains a loan from a bank or financial institution, which is secured by the property itself. The borrower then makes regular payments, known as Equated Monthly Instalments (EMIs), over a specified period.
Loan Amount: The total amount borrowed from the lender to purchase the home.
Interest Rate: The percentage charged by the lender on the loan amount. It contributes to the cost of borrowing.
Loan Tenure: The duration over which the loan is repaid. Longer tenures result in smaller EMIs but higher overall interest payments.
Equated Monthly Instalments (EMIs): Regular fixed payments made by the borrower to repay the loan, consisting of both principal and interest components.
Total Interest Paid: The cumulative amount paid as interest over the loan tenure.
Total Amount Repaid: The sum of the loan amount and total interest paid.
Using the Calculator:
To estimate your home loan details, enter the loan amount, interest rate, and tenure into the calculator. It will provide you with valuable insights, including your monthly EMI, total interest paid, and the overall amount repaid. This tool helps you make informed decisions about your home purchase and understand the financial commitment involved.