|Month||Starting Balance||EMI||Interest rate||Principal contribution||Interest contribution||Ending Balance|
If you find that your existing lending institution has charged you a higher home loan interest rate or the terms and conditions regarding the tenure of the house loan availed are largely inflexible, you can opt for a Home Loan Balance Transfer facility at Finserv MARKETS.
With lending institutions such as the PNB Housing Finance, you get access to benefits such as lower EMI payments, and flexibility in terms and agreements of the loan. And the key highlight of Finserv MARKETS customer-friendly services is the Home Loan Transfer EMI calculator. Just fill in a few details in this online calculator, and you get to know your EMI payments instantly.
To use the Home Loan Transfer EMI calculator, follow the steps given below:
Enter the outstanding loan amount.
Enter the desired tenure in months.
Enter the expected rate of interest.
You can now see EMI payable along with the amortization schedule.
Your home loan EMI will be calculated on the basis of the outstanding amount taken over by the PNB. Along with the principal outstanding, the interest amount, as per the applicability rate will be added to the EMI payment. Here, you must keep in mind that during the initial years of the loan, a large chunk of the EMI payment consists of interest payments. As the loan approaches its maturity years, the interest component decreases, while the principal component is increased by the lending institution.
As a borrower, you have the option of availing the loan balance transfer either at fixed or floating rates of interest. The fixed-rate, also known as Margin Cost of Fund based Lending Rate (MCLR) is an internal benchmark below which financial institutions cannot provide loans. This rate is fixed by the institutions themselves, after taking into account operating costs, Cash Reserve Ratio (CRR), labour costs etc. The fixed rates can be revised on an annual or half-yearly basis. Typically, Home Loan Balance Transfer at fixed interest rates requires a higher interest payment.
On the other hand, opting for a Home Loan Balance Transfer based on floating rates of interest is directly contingent upon the Repo Rates. Repo rates are the rates at which the Reserve Bank of India (RBI) lends to banks. So these are also known as Repo Linked Lending Rates (RRLR). This is calculated by adding the Effective Interest Rate (EIR), which is the minimum rate set by the RBI, with the Markup, which is the margin charged by banks. Various macroeconomic variables affect the Repo rates, which in turn, influence the floating rate interest rates on home loans balance transfer. Opting for floating rate interest rates can allow you to avail the balance transfer facility at relatively cheaper rates of interest.
The foremost benefit of using PNB Home Loan Transfer calculator is that you can calculate the EMI amount instantly. It also allows for considerable ease and convenience. If you are inclined not to use the online calculator and instead calculate it using the complicated mathematical formula, here is the method: EMI=[Px R x (1+R)/\N]/ [(1+R)/\N-1]. Here, P stands for the outstanding principal amount, N represents the number of monthly instalments and R is the rate of interest. Confused about the calculations? Simply, use the Home Loan Balance Transfer EMI calculator and arrive at the exact figures.
Now that you know that using the PNB Home Loan Transfer calculator is easy as well as free from manual errors, here’s a look at some more benefits:
There are multiple factors which can affect your Home Loan Balance Transfer EMIs. Here’s a look:
CIBIL score: If you have an average CIBIL score of around 650, you will have to pay higher EMIs. This is because of the higher interest rate being charged.
Income: Having a higher income will allow you to avail lower interest rates and lower EMIs.
Outstanding loan amount: Typically, a higher loan amount will require higher EMIs and vice-versa.
Tenure: If you opt for a longer tenure, your Home Loan Balance Transfer EMIs will become more affordable.
With PNB Home Loan Balance Transfer you get access to unbeatable features such as affordable interest rates and flexible repayment tenures. You don’t require any guarantor and the application for a balance transfer is processed in a quick and hassle-free manner. You are also not required to undergo the cumbersome documentation process. What’s more, you have to pay nominal processing charges and the entire process is without any hidden costs.
You can set standing instructions to your bank to deduct the EMI automatically. Otherwise, you can transfer the EMI on the stipulated date through internet banking, credit/debit card or other forms of digital payment. You can also deposit cheques. Alternatively, you can call the PNB toll free number: 18001208800. You will then receive a payment link on your registered e-mail id or mobile number. You can then use digital payment modes for making EMI payments.
You can reduce your interest rate by the following ways:
Opting for a longer tenure.
Negotiating the service terms.
Making home loan prepayments.
Opting for floating rate interest rate.
You can check your loan status by calling the toll free number: 18001208800. You can also call the tolled number: 0120-249000 or landline number: 011-28044907. You can also send an email at email@example.com to reach their customer care division.
As opposed to full EMI payments, pre-equated monthly instalments, also known as Pre-EMI, refers to EMIs that only comprise only the interest component of your home loan. This option can be availed when your house is under construction. Post completion of your house, the financial institution will ask for full EMI payments. The pre equated monthly instalments are not considered a part of your home loan tenure. The purpose is to reduce your financial burden because your house is still being constructed and not in your possession.