With the help of a home loan, it is now possible for many aspirant homeowners to successfully achieve their dream home. The income of a homeowner really matters when taking a home loan. But, along with that many factors also influence your home loan EMI. EMI or equated monthly installment is the monthly amount that a borrower has to repay to the lender towards their home loan.
Let us see the top 5 factors that influence your home loan EMI.
Factors That Influence Your Home Loan EMI
● Income Of An Applicant:
The first main important factor that impacts the home loan EMI is the income of an applicant. Usually, 40% to 50% of your monthly income can be used as EMI. As the income level rises, the EMI amount also gets increased. If a person has a higher income slab, the lender opts for a higher percentage of his monthly income. But, the EMI criteria for a salaried person will be different from self-employed professionals. For self-employed professionals, the gross receipts are considered instead of tax receipts, for deciding the home loan eligibility.
● Impact Of Existing Loans:
The lenders deduct your other EMIs from your present amount to know your EMI to calculate your home loan. Your home loan amount also depends on this amount. That’s why it is important to repay the existing EMI first, to improve the chances of home loan eligibility.
● Age And Remaining Years Of Service:
Home loans can provide tenures of up to 20 years. Your age and remaining service years also impact your home loan EMI.
● Availability Of Co-borrowers:
If you can add someone as a co-applicant, then you have higher chances of eligibility for a home loan EMI. PNB Housing and other bankers will also include the amount of all the co-applicants to decide the amount repayable for EMI. All the joint owners of a property are considered as co-borrowers though they have a separate income. A person who is not a joint-owner of a property can also become a co-borrower.
● Tenure Of The Home Loan:
Your home loan EMI also depends on the tenure you choose. With a constant income, a longer home loan tenure provides a higher EMI. If you have surplus funds, then repay your home loan EMI either partially or fully.
● Credit Score Or CIBIL Score:
A credit score shows your creditworthiness. When the credit score is higher, your chances of loan availability are higher. The lenders like PNB Housing view you as a reliable borrower with better financial practices, reduced risk, and your ability to repay EMI.
● Processing Fees And Additional Charges:
Other hidden charges such as processing fees also impact your home loan EMI and increase the cost of home loan EMI.
Conclusion
Many things including type and location of your property, economic indicators, personal credit scores and credit history will play a crucial role in the availability of interest rates. Assessing these factors will help you take the best EMI for your home loans.
PNB Housing lets you know your home loan EMI and enjoy your eligibility and stability during loan terms.
