Muthoot Finance Home Loan EMI Calculator

The characteristics of Muthoot Finance Home Loan are as follows:

• Caters to all kinds of borrowers, including those who do not have any formal sources of income generation.
• The maximum amount of Home Loan is Rs. 50 Lakhs
• Rate of interest starts from 10.75%
• Repayment of the Home Loan is through EMI
• The maximum repayment tenure is 20 years

You can also Apply for Bank of India Home Loan and check EMI, Interest rates and Eligibility Online.

Muthoot Finance offers the following types of Home Loans:

• Floating rate Home Loans
• Fixed-rate Home Loans
• Combination rate Home Loans

The rate of interest on the Home Loan is linked to the Retail Prime Lending Rate of the company. The company charges interest on monthly reducing balances. The ideal mode of repayment of Muthoot Finance Home Loan is EMI. The company website has an EMI Calculator to facilitate customers.

You can also Calculate Rs. 5 Crore Home Loan EMI and compare interest rates with Top Banks. 

Muthoot Home Finance offers the facility of a Home Loan EMI Calculator. Using this calculator, customers can estimate their EMI easily. Using the calculator is simple. The customers need to enter the following necessary information in connection with their Home Loans.

• The loan repayment tenure in years
• The amount of Home Loan you need
• The rate of interest per annum

On entering this information, you get the following details:

• The EMI amount payable by you for the entire tenure of the loan
• The amortisation schedule showing the breakup of principal and interest repayment
• The table also provides details of the proportion of loan you repay every month

Check Best Home Loan Interest Rates starting @8.50% from different banks and NBFCs.

• Get the Home Loan EMI instantly by entering specific information about your loan
• Know your Home Loan repayment obligations before you apply for the loan
• Doing a reverse calculation helps you determine the maximum Home Loan that you can afford
• It becomes easy to plan your budget if you know your Home Loan and other EMIs
• This EMI Calculator can help calculate the EMI of any loan
• Get the facility of the Home Loan amortisation schedule. You become aware of the concept of the Home Loan EMI.

You can also check Loan EMI through ICICI Home Loan EMI Calculator.

Moratorium Period

Home Loans sanctioned for construction purposes come with a moratorium period that could extend up to 18 months. The disbursement happens in tranches depending on the requirements. The regular EMI repayment for such Home Loans commences one month after the date of the final payment (or the completion of the moratorium whichever is earlier).

Under such circumstances, the company charges interest on the amounts that are partially disbursed. This interest amount charged to the loan account before the start of the EMI is pre-EMI interest. Muthoot Home Finance insists that the borrower repay the pre-EMI interest as and when it is debited. However, the company can consider a request for capitalising the interest. This accumulation of interest can cause a change in the EMI.

Rate of Interest fluctuation

Muthoot Home Finance Home Loan interest rates depend on the Retail Prime Lending Rate of the company. This rate, in turn, links to market-related rates. Therefore, any change in the market rates can bring about a change in the RPLR, and thereby the applicable Home Loan interest rates. The Home Loan EMI can vary with every change in the interest rate. If the rates go up, the EMI can increase and vice versa.

PMAY Subsidy

Muthoot Home Finance is an active lender in PMAY. The EMI estimation in PMAY is different from that of the regular Home Loan accounts. All PMAY beneficiaries are eligible for Governmental support in the form of an upfront interest subsidy. The subsidy amount depends on the category of the borrower. The company applies to National Housing Bank for disbursement of PMAY subsidy. On receiving the same, it is credited to the Home Loan account. Therefore, the principal liability reduces drastically. It affects the EMI calculation.

Prepayment of Home Loan

Borrowers have the facility of prepaying their Home Loans. Prepaying the Home Loan results in a reduction of the principal portion of the loan. Usually, borrowers do not seek any modification in the EMI. However, the borrower is entitled to request the company to restructure the EMI after the prepayment. Under such circumstances, the EMI can change.

Muthoot Home Finance - EMI repayment - tax benefits

Home Loan repayments are eligible for income tax benefits. These concessions are available for both interest and principal amount repayments. Sec 80C of the IT Act offers income tax concessions up to Rs. 1.50 Lakhs on Home Loan principal amount repayments. Sec 24 of the Act deals with interest repayments. The maximum tax concession available under Sec 24 is Rs. 2 Lakhs per individual per annum.

You can opt for 35 Lakh Home Loan and Compare Interest Rates with Top Banks to calculate EMI.

The Home Loan is a long-term liability. Secondly, the amounts involved in a Home Loan are substantial. Hence, the ideal mode of repayment is EMI (equated monthly instalments) instead of the traditional EI (equated instalments). Many customers confuse between these two repayment modes and treat it the same. However, they are different from each other.

Equated Monthly Instalment Concept

EMI is the most popular repayment method. It comprises of two components, the principal repayment component and the interest constituent. Both these portions are variable. In the initial stages, the principal repayment is less. A glance at the Home Loan amortisation schedule shows that it can be as low as 5% to 10% of the EMI amount. As you continuously pay the EMIs on time, the principal repayment portion increases. However, the EMI remains constant throughout for a specific loan amount, ROI, and rate of interest.

Equated Instalments Concept

The equated instalment concept is different from EMI in the sense that the monthly instalment varies depending on the interest amount. The loan amount is divided by the repayment tenure (in months) to arrive at a constant figure constituting the principal repayment. Besides this amount, the borrower has to repay the interest component separately. Hence, it results in a higher liability in the initial stages.

Muthoot Home Finance Limited follows the EMI mode of repayment. The Home Loan EMI Calculator on the official website proves helpful to customers to determine their monthly repayment obligations.

You can also check Pan Number for All Banks for Home Loan.