Calculate EMI that you have in mind, contact us for more information!
How the EMI is worked out
An EMI is a fixed monthly payment covering both interest and repayment of the principal. Three things decide it: the amount you borrow, the annual interest rate, and the tenure in months or years. Early in the loan most of each instalment is interest; towards the end most of it is principal, even though the payment itself does not change.
That is why tenure moves the monthly figure so much more than people expect. Stretching a loan from fifteen years to twenty brings the instalment down noticeably, but adds five more years of interest to the total. The calculator above shows both numbers — the monthly payment and the total interest — and the second is the one worth comparing between offers.
What the calculator does not include
The figure above is the loan repayment alone. Buying a property carries costs that no lender includes in the EMI and most banks will not finance:
- Stamp duty and registration charges, payable from your own funds
- Your own down payment, since lenders fund a percentage of the valuation rather than the full price
- Processing and legal fees charged by the lender
- Maintenance or development charges levied by the project
Our guide to calculating stamp duty explains how that one is worked out in Andhra Pradesh and Telangana, and it is usually the largest of the four.
A point worth knowing about the valuation
Banks assess a property themselves rather than lending against the price you agreed. If their valuation comes in below that price, they lend against the lower figure and the difference falls to you. It is worth asking early which lenders have already approved the project you are buying into — an approved project is normally faster to process, because the bank has vetted the title and approvals once already for everyone buying there.
If you would like help working through the numbers on a specific plot or apartment, talk to our team. You can also browse current ventures in Kurnool or Hyderabad to get a realistic figure to put into the calculator.