This article will help you to know more about the Home Loan terms and procedures in India.
Major Steps in the Bank Home Loan
The two major steps in home loan process are
- Approval of the loan
- Disbursement of the Home loan – This is when you will get the loan amount approved to you.
Fees for the Home Loan
You need to pay two types of fees
- Processing fee
- Administration fee
What is EMI ?
You have to pay back the loan in equated monthly installments also known as EMI in short. This EMI comprises of principal and interest. Your EMI commences from the month following the month in which you take full disbursement. Eg. If he home loan is fully disbursed to you in February then the EMI will start from next month, March. EMIs are usually paid by post dated cheques.
You need to pay a simple interest on the portion of the home loan before final disbursement is done, known as Pre-EMI.
This interest is known as pre-EMI interest. Pre-EMI payments should be done by the last day monthly.
Amortisation schedule is a table showing the reduction of your loan amount by monthly installments. This table shows you the breakup of every EMI towards repayment of interest and your outstanding principal of home loan
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- Home Loan Pros and Cons Benefits Risks of House Loan
- Home Loan Terms in India
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