Mahindra Finance Home Loan EMI Calculator

Some of the attractive features of Mahindra Finance Home Loan are as follows:

• Extensive network with a Mahindra Finance outlet, present in every second village in the country
• Easy processing
• Flexible repayment options
• Prompt service
• Loans available for all housing purposes
• Competitive rates of interest
• Facility to apply online
• Calculate your eligibility and EMI online

Additional Info: Also check Mahindra Finance Personal Loan

• Mahindra Finance Home Loan interest rates start from 9.00% for the floating rate of interest Home Loans.

Additional Info: Looking for 25 Lakh Home Loan? Check EMI & Apply.

The EMI calculation comprises of a complicated formula. It accounts for various factors. There are three variables to contend with, such as:

• The principal loan amount approved by the company
• The rate of interest applicable to the Home Loan
• The loan repayment tenure

The formula is as enumerated below:

EMI = [PR(1+R)^N] / [(1+R)^N-1] where P, R, and N constitute the principal loan amount, the ROI, and the loan repayment period.

Though the formula appears intimidating, it is easy to calculate the EMI using a readymade EMI Calculator. Mahindra Finance offers the facility of such an EMI Calculator on its website. The calculator is easy to use. The customer has to input the three variables, and the system does the calculation within no time.

Factors That Affect the EMI Calculation

The EMI calculation depends on the following three variables:

• Loan amount - Higher the loan amount, the more significant is the EMI payable
• Rate of interest (ROI) - As the ROI goes up, so does the EMI
• Loan repayment period - In inverse proportion to the EMI

Inference:

• The increase in the rate of interest from 11.50% to 12% entails the enhancement of the EMI at every step.
• As the principal loan amount increases from 10 Lakhs to 15 Lakhs and 20 Lakhs, the EMI increases proportionately.
• The extension of the tenure has a reverse effect. As we move from 10 years to 15 and 20 years, the EMI reduces.

Additional Info: Looking for 10 Lakh Home Loan? Check EMI & Apply.

• It does not take more than a few seconds to Calculate the Home Loan EMI
• Knowing your Home Loan repayment obligations in advance is useful as it helps to manage your budget well.
• Being aware of the Home Loan EMI can bring a sense of financial discipline
• It becomes easy to recalculate the EMI in the event of interest rate fluctuations
• One can use this EMI Calculator for calculating the EMI of other loans, as well

Additional Info: Also check HDFC Home Loan EMI Calculator

Interest rate fluctuations

Mahindra Finance offers Home Loans at fixed and floating rates of interest. The floating rates of interest are linked to the Prime Lending Rate of Mahindra Finance. As the PLR changes, so do the rate of interest on Home Loans. As the ROI is a crucial feature of the EMI calculation, a difference in the ROI will bring a corresponding change in the EMI amount.

Moratorium Period

The concept of EMI is such that it commences after the final disbursement of the loan. In the case of finance for properties under construction, the disbursement happens in tranches. Hence, the company grants a moratorium or holiday period for servicing the EMI. This period could stretch up to 18 or even 24 months. Generally, financing companies insist on the servicing of the interest every month before the commencement of the regular EMI. At times, they also allow capitalisation of the interest. Under such circumstances, the principal loan amount increases, thereby bringing about a change in the EMI.

PMAY Subsidy

PMAY beneficiaries are entitled to interest subsidy from the Government. This Government grant is an upfront subsidy. It is credited to the loan account immediately on receipt from the Government. The credit of upfront PMAY Subsidy reduces the principal loan amount considerably. The loan amount has a significant role to play in the estimation of the EMI. As the loan amount reduces, so does the EMI.

Additional Info: Also Apply Home Renovation Loan

MyMoneyMantra.com has an identical EMI Calculator on its webpage. It provides accurate EMI results. Using the calculator is also easy.

• Access the MyMoneyMantra website
• Go to Financial Tools > EMI Calculator
• Enter the loan amount, ROI, and loan tenure correctly
• Click on 'Calculate' to get your Home Loan EMI

Besides the EMI, this calculator offers details of total interest payable on the loan amount for the entire loan tenure.

Additional Info: Also check Pan Number for Banks

Housing is a priority issue in India. The Government has announced income tax benefits to individuals for repaying their Home Loan instalments. The benefits are available for both interest repayment and principal amount repayment.

Sec 80C of the IT Act entitles individuals to claim tax benefits up to 1.50 Lakhs on the repayment of the principal portion of the Home Loan.

Sec 24 of the IT Act allows individuals to get benefits up to 2 Lakhs on the repayment of the interest component of the Home Loan.

Additional Info: You can also Check AnyRoR Gujarat Land Record