Shubham Housing Finance Home Loan EMI Calculator

Shubham Housing Development Finance Company is a private mortgage lender providing Home Loans to individuals with informal income. The first Indian organisation to outdo the conventional document-based underwriting, the company with its customised credit program initiated the process of issuing Home Loans to individuals without any income proof. Today the company enjoys a strong pan India presence. It operates in 73 cities located in 9 Indian states and has a total number of 84 branches.

Housing Loan is the core business of Shubham Housing Finance. With more than  2,500 crore disbursed as Shubham Housing Finance Home Loans, the company has helped over 35,000 Indian households who are outside the formal tabulated income circle. The company provides a wide array of financing solutions for purchase, construction, and extension of the property. The Home Loans offered by the company range between 9.90% to 16% p.a.

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

Shubham Housing Finance issues Home Loans under two heads. The applicants can apply for the most appropriate Home Loan scheme depending upon their personal requirements:

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

The borrower is required to pay back a fixed amount every month. This monthly payment is the EMI, which is ascertained through a mathematical calculation using three parameters - principal amount, loan tenure, and rate of interest. The EMI schedule makes the Home Loan applicant aware of the amount of outflow that will be incurred every month to repay the loan.

The below table depicts the EMI schedule of Shubham Housing Finance Home Loan. The table shows the EMI amount for different Home Loan quantum and durations. The rate of interest remains static at 9.90% p.a.

The above table highlights the importance of tenure of Home Loan. As seen, the EMI amount is significantly high in shorter durations and keeps on reducing as the Home Loan term increases for the same loan amounts.

However, opting for a low EMI is only one side of the coin. The EMI constitutes of two components - principal and interest. The break-up of the EMI value actually depicts the cost of the loan. As the loan tenure increases, the Interest Rate on Home Loan increases significantly, making the Home Loan expensive.

Shown below is the EMI break-up table of Shubham Housing Finance. The table is prepared for a Home Loan amount of 1 Lakh at the rate of interest of 9.90% p.a.

The above table shows the division of principal and interest for a Re. 1 Lakh Home Loan. As the loan term increases, the interest chunk on the Home Loan increases considerably, making the Home Loan expensive. So it is very important to balance between loan term and EMI payable.

For example, the EMI per Lakh for a 10 year Home Loan is 1,316, which drops considerably to 958 per Lakh for a 20 year Home Loan. However, with an interest of 9.90% p.a. on the Home Loan, the amount of interest paid over 10 years is 57,917 as against 1,30,017 over 20 years. As the interest part is only an expense, longer loan duration makes the Home Loan expensive.

You can also Calculate Rs. 1 Crore Home Loan EMI and compare interest rates with Top Banks. 

The Home Loan EMI is a result of three variables - principal amount, Home Loan tenure, and rate of interest charged by the lending institution. Any change in the three will cause a change in the EMI. However, there also exist additional factors that have a direct impact on these variables.

The most common factors have been listed below:

• Loan amount: The principal amount of the Home Loan is crucial for EMI valuation. Higher the amount of Home Loan applied for, higher will be the EMI. The maximum amount of Home Loan allowed by Shubham Housing Finance is 50 Lakhs.
• Interest rate: The interest rate charged by the lending institution has a direct bearing on the EMI amount. A higher interest rate will result in a higher EMI. Shubham Housing Finance offers Home Loan ranging between 9.90% to 16%. The rate charged for the Home Loan will depend upon the applicant's profile.
• Loan term: The duration of the Home Loan has an inverse relation with the EMI. As the number of years over which the loan will be repaid increases, the EMI amount dips for the same amount of principal amount. Shubham Housing Finance has a maximum loan repayment term of 20 years for purchase and construction and property and 10 years for loans availed for repair and renovation of an existing property.
• Applicant's profile: Shubham Housing Finance sanctions Home Loans to individuals who do not have a formal income record. As the Home Loan is given without any income proof, the bank will closely scrutinize the applicant's work profile before sanctioning the loan, and thus the rate of interest will vary accordingly.
• Purpose of Home Loan: Shubham Housing Finance offers Home Loan under two categories - Home Loan and Home Improvement Loan. The rate of interest, loan tenure, and principal amount allowed for each scheme is different. Thus, a direct impact is seen on the EMI value.
• Credit score: Although the applicant wanting to apply for a Shubham Housing Finance Home Loan is not required to furnish income details and supportive documents, the applicant must certainly have an active bank account. A good banking record and credit score will help the applicant get a high loan value at the minimum rate of interest.

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

EMI is to be paid every month, over a long period of time. So, it is important that the additional burden can be comfortably accommodated with no financial stress.

However, it is also important that the EMI should not be too low as it will increase the loan duration, making it expensive. Here are guidelines that will help you reach the ideal amount of EMI:

• Evaluate the Home Loan: The principal amount will attract interest. So higher the principal, higher will be the interest and resultant EMI. An estimation of the principal value is important before applying for the loan. This is possible only when you make a careful selection of the property. Check your loan eligibility and apply accordingly.
• Consider current liabilities: Before taking on a new liability, it is important that you clearly assess and evaluate your current liabilities. Your Home Loan EMI payout should fit your budget without harming routine expenditure and without depleting your emergency reserves.
• Opt for the right term: The Home Loan tenure plays a crucial role. Loans with shorter terms are considerably less expensive but have a higher EMI and vice-versa. The interest outflow is highest for long terms, making the loan very expensive. So carefully assess the principal-interest ratio and EMI value before deciding the Home Loan term.
• Check eligibility: Amount of Home Loan depends upon applicant's profile. So use the loan eligibility checker to gauge the amount of Home Loan one is entitled for. Applicants can increase the eligible limit by adding co-applicants.
• Know your FIOR ratio: FOIR or the Fixed Obligations to Income Ratio enables the lending institution to gauge the repayment capacity of the applicant. It is ascertaining using current income and current expenditure. Ideally, EMIs payable on all loans, including the current one, should not be more than 50% of the income.

You can also check Loan EMI through Loan Against Property EMI Calculator

The Home Loan EMI does not change unless requested for. Home Loans issued on floating rates of interest can adjust the increase or decrease in the total payable value against the loan tenure without making changes to the EMI. However, in cases where the borrower will attain the maximum age before the loan is liquidated, the tenure is kept unchanged, and the EMI amount is recalculated.

You can also check Loan EMI through SBI Home Loan EMI Calculator

Shubham Housing Finance allows its Home Loan borrowers to prepay Home Loans. Upon every lump sum prepayment of the principal amount, the outstanding principal amount is reduced. The borrower then has an option to continue with the same EMI, but a reduced loan term or pay the remaining Home Loan with a recalculated EMI over the original loan tenure.

You can also check Loan EMI through Compound Interest Rate Calculator