Home loans are a boon for people who want to own a house. It is a secured loan, and thereby has a long repayment tenor. Many financial institutions offer lower interest rates and maximum tenor for home loans which benefits an individual in the long run.
Read along to know the maximum home loan tenor and how home loan EMI calculator helps an individual.
What is the maximum tenor for home loan?
The maximum tenure for home loan is 30 years which an individual can pay through monthly installments. However, the tenor of a home loan plays a vital role when choosing a loan and the overall interest payable. Long-term loans help in paying smaller Equated Monthly Instalments (EMI) but it increases the interest amount overall.
Since RBI increased the repo rate due to inflation, it has increased the interest rate on home loans. So choosing a home loan with a longer tenor will benefit the individual in the long run as the EMI will be reduced. However, one can save on the interest by prepayment and lumpsum return of the loan amount.
How does a housing loan EMI calculator help a borrower?
A home loan EMI calculator helps an individual in the following ways:
- Precise and fast calculations
Online housing loan EMI calculator provides precise and quick results while calculating the monthly instalments. Furthermore, an individual can choose a home loan which will suit him/her by checking different values of loan amount and tenor.
- Prepayment and managing finance
Using an EMI calculator will benefit a borrower as he/she can do prepayment of the loan amount. This way borrowers can manage their finances and it will benefit them in the long run. In addition to that, an individual can choose the right time to make a prepayment, which will reduce the tenor eventually.
In India, some financial organisations provide pre-approved offers on home loan and loan against property to their existing customers. Such offers accelerate the loan application process. Interested individuals can check out these pre-approved offers on the organisation’s website by filling in their name and contact details.
The maximum tenor for home loan benefits an individual to pay less monthly installments and manage their finance accordingly. Thereby, an individual can check some of the reputed financial institutions when applying for a home loan and choose the one most befitting them.