EMI – A word you have heard over and over again. What exactly is it? An EMI is an Equated Monthly Installment, which remains the same over the entire loan period though the interest and principal component is different in each EMI.

Interest Rates

There are various ways of calculating interest rates. Flat Interest Rate, Annual, Bi-annual, Monthly, Quarterly or Daily reducing balance method. Internal rate of return varies depending upon payment of EMI in advance or arrears.

Flat Rate:

The interest is calculated every year on the original principal amount without taking into account the repayments that have occurred.

Annual Reducing Balance:

An EMI using this technique is calculated by taking an Equated Annual Installment (EAI) and then divided by 12 to find the monthly EMI. The EAI is calculated assuming that the amount is payable at the end of the year, even though they are actually payable every month. For shorter tenure loans (up to 10 years), the differential may be as high as 2 percent more as compared to monthly reducing balance method.

Monthly Reducing Balance

This is the method that we use. This is the most scientific method as payments are made by customers in monthly installments. It recognizes the periodicity of payment and gives due credit to borrower for timely remittance. There is no hidden levy.

We have an EMI calculator tool available that will give you a reasonable idea of what you will get as an EMI. Unlike other EMI calculator tools, we have given you a range of options to choose and variations that you can try out on your own. For exact figures please drop in at any of our branches.

Products

 Fixed Rate Loans

This is the simplest type of home loan available. As the name itself suggests, the interest rates in these loans remain constant throughout the tenure of the loan. The rate of interest is typically higher than the current rate of interest. However, once the loan is taken, the rate tends to be fixed, with no changes unless the market rate changes drastically. Thus, you can plan for a fixed amount per month with no recalculation at any point of time. This is also the preferred option for customers, who are averse to interest rate risk.

Processing Fee:- 0.6% of the Loan Amount Requested
Admin Fee:- 0.7% of the Loan Sanctioned

 Variable Interest rate or Floating Rate Loans

In this scheme the interest rate is linked to the benchmark rate. However, the rate will be governed by the changes in the benchmark rate. If the benchmark rate goes up, so does your interest rate, and therefore, the EMI. Similarly, the interest rate will go down if the applicable benchmark rate goes down. Benchmarking is done by the company based on its interest rate experience and not necessarily with any / all changes in money market. Products on the annual are Step-Up, Step-Down and Flexi-Fix payment plan.

Processing Fee:- 0.6% of the Loan Amount Requested
Admin Fee:- 0.7% of the Loan Sanctioned

 NRI Home Loan Scheme

We have schemes specifically tailored for the needs of NRIs. Please contact our nearest branch for details. We are also planning to introduce exciting new products in the near future.

 Value Additions :-

• Free Insurance to Borrower against accidental death.
• Free Insurance of Property against fire and allied risk.
• No charges on part repayment of loan before end of tenure. There is no fixed number of part repayments that could be made over the tenure of loan.
• Monthly Installments are collected through post dated cheques. No cheques are banked in advance of due date.