Piramal Capital & Housing Finance Home Loan EMI calculator

What is an EMI?

EMI in loan stands for Equated Monthly Installment. EMI is a fixed amount to be paid by the borrower to the lending institution every month or every quarter (as decided on loan terms). EMI includes the principal to be repaid and the corresponding interest for the same. The amount to be paid as EMI is decided by the lender before disbursing the loan to the borrower. It is calculated based on the rate of interest fixed for the loan plan.

EMI calculator assists in calculation of installments to be paid for the loan taken. The calculator uses information such as the amount borrowed, rate of interest and tenure of loan in order to calculate the EMI. It is an easy-to-use tool and is helpful in financial planning for the borrower.

Why should I use EMI calculator for Piramal housing loan?

EMI calculator gives a fair amount of understanding of the EMI due every month. You should use EMI calculator when you are planning to opt for a home loan with Piramal. Input different tenure values each time you use the calculator to find the period of tenure that would suit best for you. For example, input loan tenure as 10 years, 15 years, 20 years, 25 years to find out the EMI to be paid based on the tenure. You can then choose the tenure for which you can pay the EMI without any hassle. It is essential that the EMI be well within the monthly repayment capacity of the borrower. Banks and NBFCs check for the repayment ability of the loan applicant in order to sanction the loan. Also, EMI calculator is an important tool to determine the EMI to be paid so the borrower can plan finances accordingly.

How does the Fincity EMI calculator work?

You can use Fincity EMI calculator online to check your EMI for Piramal home loan. Enter the details – loan amount, tenure of loan, and, interest rate (as mentioned in the home loan plan). As a result, the EMI calculator shows principal amount, amount of interest, total amount that is payable, and the monthly EMI for the same.

How to use Piramal home loan EMI calculator?

Step 1 – Enter amount of home loan that you want to apply.

Step 2 – Input the rate of interest as mentioned for the home loan plan you’re considering.

Step 3 – Input the tenure you want for the home loan.

Step 4 – EMI calculator shows the output with the monthly EMI. Other results displayed are principal amount, total interest to be paid, and total amount payable to PCHF.

Step 5 – Use the EMI calculator to enter a higher or lower loan tenure than the earlier chosen period and check for the change in EMI. Choose the loan tenure in which the EMI is most suitable for payment.

Calculate Piramal home loan EMI

Use the below table to get a quick understanding of the different amounts you’d have to pay monthly (as EMI) for different loan tenures. As you can see, the longer the tenure, the lower the monthly EMI, and vice versa. However, it’s important to keep in mind that while the monthly payment might be lower, you will end up paying a larger overall amount for a longer tenure.

Example: If the Principal (amount borrowed) is Rs.10 lakh, and rate of interest is 9.65%

How to reduce your EMI on Piramal home loan?

Follow best practices for EMI repayment

• Pay your EMI dues on time

It is essential to pay EMI on time. Any delay or default will result in a charge. Also, loan defaults lead to lowering your credit score. Maintaining high credit scores always is important for the current loan and to apply for future loans. If in case you are not able to pay your EMI on time due to job loss or any such severe reason, you can put across the reason to your bank manager and receive a maximum time off of six months to not pay any EMI. Post 6 months you can resume your EMI payments at the same terms and rate as decided earlier.

• Pick the credit to be paid off first

If you have more than one loan to be repaid, be it a home loan, credit card or personal loan, pick the credit that you want to pay off first. Choose the credit that has the highest rate of interest among the loan you have to repay and pay that off first. Loans taken through credit cards usually carry the highest rate of interest. Interest varies based on the tenure for the credit card. It might be tempting to repay the loan with the longest tenure, but saving up on the interest by paying off credit card dues is worth saving the penalty.

• Check on the credit card dues

If you rely on credit card and have to repay a huge sum for the same, contact your bank and convert your credit card dues into EMIs – basically pay off your credit card dues with a personal loan. This makes it easy to repay in small sums without worrying about the additional penalty interests that you will have to pay when you miss a credit card payment.

• Include all charges to calculate EMI

Apart from the rate of interest to be paid for the loan taken, include all other charges/fees that are levied on the home loan. If you default/miss an EMI, consider the additional charges that you will have to bear for it. Pay off the EMI that will be heavy on the pocket if not paid on time.

Follow best practices for credit behavior

• On-time payment of EMI

Paying EMI on time as agreed with the lending institution displays responsible credit behavior. When EMI payments are not made on time, it negatively affects the credit score of an individual. Therefore, it is advisable to pay the due in full and on time for the credit card due and any loans taken.

• Do not miss payment of EMI

When you miss an EMI, it is noted as a default. Each default on payment is noted in the credit history of an individual. This brings down the credit score and is also viewed in negative light when an individual approaches banks for future borrowings. Credit score is one of the most important criteria while determining loan eligibility for your future loans. Hence, it is important to consistently maintain high CIBIL scores and avoid mistakes that bring down the credit score. Do have a check on your credit score regularly. If you find any discrepancy in it, report it to the authorities immediately for correction and changes.

• Create an emergency fund

There are times when expenses are higher than the income. In such times, emergency funds bail an individual out of the situation. When there are no emergency funds on which the individual can rely, one turns to borrowing. This leads to increased debt and banks do not favor borrowers who rely too much on credit. Over-dependency on credit displays credit hungry behavior and reduces the CIBIL score.

• Create a mix of borrowings

Create a mix of secured loans and unsecured loans. Getting only home loan, personal loan and credit card usage creates too much of unsecured loan balance. This makes the lending institutions like banks and NBFCs wary of lending credit. Create a healthy mix of car loan, loan against jewelry along with home loan and credit card to have a mix of secured and unsecured loans.

Budgeting tips for managing money

• Assess your current financial situation

Unless you are aware of your current financial situation, it is not possible to take the reins of your finances. Write down all the assets (include gross income) and liabilities. Make sure your income/cash in hand is weighing higher than the liabilities.

• Budgeting

Formulate a budget by listing down all your expenses and income. Cut down on any unnecessary expenses so there is more room for savings. Even the smallest amount of money that is saved every month turns out to be a huge amount when saved throughout the year.

• Create an emergency fund

Having an emergency fund to fall back on helps in avoiding to borrow. This reduces your likability to borrow from banks and NBFCs thus reducing your dependency on credit. Also, having an emergency fund brings with it a peace of mind to be able to manage tough situations without having to worry about the monetary aspect.

• Get an insurance

Anything that requires huge expenditure for repair needs to be insured. This ensures that you don’t have to borrow funds when you have to purchase a new expensive item. Life insurance, health insurance and vehicle insurance should be taken for all. Insurance cover is an investment you make today, so it protects you in the coming time.  

Standing instructions method of EMI payment

StandingInstruction (SI) method of EMI payment is where the borrower gives standing instruction to the bank to auto-debit account in order to make EMI payments. SI is given when a home loan customer has a savings account with the same bank. Instruction is given to the bank to automatically debit funds for EMI payment every month from the savings account of the borrower. The date in which the funds have to be debited month-on-month is specified.

SI method of repayment for home loan is the easiest way to make sure one does not miss an EMI payment. Borrower has to ensure that there are sufficient funds in the savings account for the EMI payment to go through without any hassle.

Choosing a lower amount of loan

When you choose to build, purchase or refurbish a residential property with a home loan, take into account the fact that loans need to be repaid. Therefore, opt for a loan that you will be able to repay without any hassle. Choose the amount of loan based on your needs. The lower the amount of loan you apply for, the lesser is the rate of interest and so is the overall sum to repayment the home loan.

Choosing a longer loan tenure

While using the Home Loan EMI calculator, try out different loan tenures. Choose the tenure that suits the best based out of the EMI that you can pay to the lender. Choose longer loan tenures so the amount of EMI is reduced. The less the EMI amount, the lesser the worry to repay or default on payment.

Check EMIs on different amounts of loan

Getting an idea of the EMI you will have to pay for your home loan plan before you avail the loan makes it easier to plan finances. Get to know the EMI for different loan amounts and loan tenures of 10 years, 15 years, 20 years and 25 years. The rate of interest for the loan plan is 9.65% per annum as you can see in the table.

What are the penalty charges for non-payment of Piramal Home Loan EMI?

If you miss an EMI payment to the lender, a penalty is charged. Penalty is nothing but a late payment fee that is charged by the financial institution on the borrower. 2% per month on the EMI amount is levied as penalty by PCHF for delay in payment of home loan. This begins from the month of the default till the date the EMI due is paid.

Piramal Home Loan EMI Calculator FAQ

1. Does Piramal home loan rate of interest change?

If you have taken the home loan plan with a fixed rate of interest, there is no change in the EMI structure of your Piramal home loan. If your Piramal home loan plan is under floating rate of interest, it will change every time the repo rate changes. This change will happen on the first month of every quarter.

2. If I make a pre-payment, will my Piramal home loan EMI change?

When you make a pre-payment of your Piramal home loan, the principal to be repaid reduces. As a result, the borrower is given the option to either reduce the EMI amount or the loan tenure.

3. Should I reduce my EMI or my loan tenure when I make a pre-payment of Piramal home loan?

If you reduce the amount of EMI, your loan tenure will remain the same. Whereas, when you reduce your loan tenure, you will be able to save up on the interest paid for longer loan tenure. Opting for reduced loan tenure is a wise option as the loan will be repaid faster with a lesser interest.

4. Why is it important to use Piramal Home Loan EMI calculator before applying for the home loan?

When you calculate your EMI with the help of the EMI calculator, you get an idea of the amount to be paid each month. If it falls higher than your budgeted expenditure, you could opt for longer loan tenure or lesser home loan to make sure you don’t default on EMI payment.

5. How should I use the Piramal home loan EMI calculator?

Input details such as amount of loan to be borrowed, rate of interest for the home loan plan and tenure of the loan to see the EMI as output.

6. How can I pay my Piramal home loan EMI online?

You can pay your Piramal home loan EMI online using the net banking account provided to you by Piramal at the time of sanctioning the housing loan. Login to your net banking account and pay your EMI via debit/credit card or savings account.

7. Is there any relaxation in Piramal home loan repayment schedule?

Piramal offers EMI relaxation for under-construction property and property that has a clause for ‘possession at a later date’. But this has to be discussed by the home loan applicant with the Piramal representative when Piramal issues an offer letter to include payment relaxation to be included in the offer letter T&C.

8. What is the maximum home loan tenure offered by Piramal?

Piramal offers a maximum of 30 years for repayment of home loan.

*Fluctuating variable information represented here – contingent upon regulatory and market factors like all forms of amounts, variables, rates, percentages, tenures, products, fees, criteria, links, references, Sections of Acts, etc. – are subject to change in events like – revision/addition of RBI guidelines, revision of policies at the bank level, new information becoming available, etc. – and consequently the views and opinions shared here are of the writer’s inference of the most recently updated information as understood from authentic and reliable sources on the internet at the time of writing. Readers are advised that all end-case forms of amounts, variables, rates, percentages, tenures, products, criteria, fees, references, advice, etc. are contingent on external factors that are subject to change over time.