Home Loan Basics: EMI, Down Payment and Interest Explained
Understand the key home-loan concepts that influence your total cost before committing to a property purchase.
Down Payment
The down payment is the portion you fund without borrowing. A larger down payment can reduce the loan amount but should not leave you without adequate liquidity.
EMI
Your equated monthly instalment generally reflects principal and interest. The payment depends on loan amount, rate and tenure.
Interest Rate
Compare the type of rate, reset terms, fees and total repayment rather than looking only at the advertised rate.
Tenure
A longer tenure can reduce the monthly payment but may increase total interest paid. Consider your cash flow and long-term financial goals.
Borrow Responsibly
Obtain offers from regulated lenders, read the sanction terms and assess affordability under less favorable scenarios before choosing a loan.
