Home Loan Interest calculation Querry

POSTED BY Donald Dsouza ON March 5, 2013 2:38 pm COMMENTS (8)

Hi

I am planning for home loan to buy a property. We have identified the property and made the 20% down payment. We purchased the property under pre-launch offer.  My queries are as below

1. I need to pay 2.5L once in two months. I need pay like this till 2.5 years.  I am planning for home loan and wants to start the EMI immediatly. Please let me know how the interest rate is calculated on homeloan and what is the benifits

8 replies on this article “Home Loan Interest calculation Querry”

  1. Venkat says:

    I would like to understand the interest calculation for my Home loan and also Rate of Interest for the month of May.
    Will the interest amount calculated on the amount Rs.29,31,665.00 from 30-April-2015 to 31-May-201.
    I have paid Rs.45000/- on 10-May-2015
    It will be partly calculated from 30-04-2015 to 15-05-2015 for the amount Rs.29,31,665.00 and/Plus 16-05-2015 to 31-05-2015 for the amount Rs.28,86,665.00
    Can you please clarify on this query

  2. Dear Donald, based upon the amortization sheet, you can prepare your own loan sheet. The excess amount paid by you in the form of regular EMI (in place of pre EMI interest), ‘ll be considered as principal repayment & the same ‘ll be adjusted to wards the part disbursed loan. Sample this – Your loan amount is 30L Rs. & there is a part disbursal of 10l Rs. & the PRE EMI interest is say 8500 Rs. (roughly @ 9.95%) But you are paying full EMi of say 2900 Rs. the excess amount of 20500 Rs. paid by you ‘ll be adjusted towards the disbursed loan amount & for next month, the outstanding loan amount ‘ll be 979500 Rs. & accordingly the interest ‘ll be charged on it & more principal amount ‘ll be adjusted.

    thanks

    Ashal

  3. Donald Dsouza says:

    Hi Ashal

    I have went through the Loan Amortization excel sheet and it gives the break up for principal and interest for whole loan loan amount. As I am going for Construction based loan in this case if I pay the EMI immediately how it will be calculated?

  4. Dear Donald, the calculation is already there in your PC. Please open loan amortization template in your exl sheet & calculate on your own.

    Thanks

    Ashal

  5. Donald Dsouza says:

    Thanks Ashal

    Is there any link which I can use for the calculation(principal + interest) and I can see monthly basis(principal + interest)?

  6. Dear Donald, if you start immediately, you ‘ll be paying principal amount even during waiting for possession period so your loan ‘ll be over early & thus you ‘ll be able to save interest outgo over the period of loan. if you opt to pay only Pre EMI, the interest outgo ‘ll be higher in total.

    Thanks

    Ashal

  7. Donald Dsouza says:

    Hi Ashal

    I am not looking on the tax benefit angel. I am looking on whether to start the EMI immediately or after the possession. If I start the EMI immediately and its benefits

  8. Dear Donald, the interest ‘ll be calculated on the disbursed amount till date. For example, if you have used 5L Rs. out of a loan amount of 20L Rs. the interest ‘ll be charged on 5L Rs. only. Regarding the benefits, are you asking for Tax benefits? If yes is your answer, please read past discussions here in the forum. So much info is there already.

    Thanks

    Ashal

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