Concept of Home loan

For most of us, buying a house is like crossing one of life's most significant milestones. It Is indeed the biggest dream of Individuals in the contemporary world. The primary reason for this is the humungous investment one makes to buy a house property. For middle-class buyers, Home loan plays a vital role; as per recent RBI data, 63% of home buyers opt for housing loan to buy their dream homes. EMI amount is critical in deciding the loan’s eligibility and the property's affordability.

Whether you plan to buy a smaller or bigger home depends on the money you can pay from your savings and the EMI burden you can take.

The Price of one apartment starts at Rs 23.99 lacs at Eastern Park. One can easily book their home with a down payment of Rs 51000. Post this; you can apply for a home loan with any significant bank and pay the balance from the loan account quickly. Eastern Park also assists its customer in inputting loan applications across all central public and private banks.

Can I afford EMI to buy a home at Eastern Park?

To avoid distressing your finances, figuring out what percentage of your income or savings should go to paying EMI for your home is always necessary. Remember, the affordability factor always counts; you may not be able to pay very high EMIs due to financial constraints. Therefore, you must first realize the amount of EMI under your affordability range. Globally individuals go for EMIs, which equal 40%- 50% of their monthly net cash flows.

EMI amount depends on-

1. 1. Net income- Lenders don’t consider the gross income while calculating the EMI. They only take the cash component of the income which comes to the individual's bank account.
2. 2. Ability to pay- Lenders usually ensure that the EMI of the loan shouldn’t be more than 40%-50% of the monthly cash inflow. Also, lenders don’t consider any irregular incomes credited to the bank account while calculating loan eligibility
3. 3. Tenure of the loan- Higher the loan tenure lesser the EMI
4. 4. Loan amount- Higher the loan amount, higher the EMI
5. 5. Interest rate- Higher the Interest rate, higher the EMI
6. 6. Chance of Future cash inflow growth- Higher the probability of an increase in your monthly income cash flow, the higher the EMI amount you should pay

You can easily calculate the EMI of your prospective home online here.

Below is the tentative EMI schedule for purchasing a flat at The Eastern Park

As a matter of financial wisdom, one should only pay EMIs of less than 40%-50% of monthly cash inflow. While the combined EMIs of all your loans should be less than 45-50% of your total income, home liabilities should be within 35-40 % of the revenue.