Hme loan EMI
SOME ASPECTS OF AN EMI Check out outlines of significant aspects of an EMI and its components Home loans are repaid through equated monthly instalments (EMIs). An EMI consists of both interest and principal amounts.The EMIs remain constant over the tenure of the loan. The loan amount plus the interest for the loan tenure divided by the tenure of the loan (in months) gives you the EMI. The amount of EMI to be paid depends on various factors, which include the amount of loan, tenure of loan, rate of interest and mode of calculation of interest. Normally, a home loan is repaid over a number of EMIs spread over a number of years. In the case of floating rate loans, the EMIs will increase when the interest rate goes up and is reduced when the interest rate comes down. The interest and principal loan components in the EMIs may vary from month to month. In the initial period, as the loan amount out standing is more, the interest component i...