EMI stands for Equated Monthly Installment. Home Loan EMI is the monthly repayment of the principal amount and payment of the interest on the outstanding amount of your home loan. A longer loan tenure for your loan helps to reduce the EMI’s.
The formula to be used for calculating EMI is EMI = [P x R x (1+R)^N]/[(1+R)^N-1] where ‘P’ stants for loan amount or principal, ‘N’ is the number of instalments monthy and ‘R’ is the interest rate per month. Therefore, if the rate of interest per annum is 11%, then rate will be 11/(12 x 100).
In order to keep the process of Home Loan application quick and hassle free, we have made a list of verification documents. You need to submit the home loan application form along with the following documents,
- Age and Address proof.
- Income and Banking proof.
- Relationship Proof
- Identity and Signature proof.
- Educational Qualification proof.
- Employment certificate from the employer
- Copies of pay slips of last 6 months
- Latest Form 16 issued by employer Bank statements
- Copy of audited financial statements for the last 2 years
- Copy of partnership deed if it is a partnership firm or copy of memorandum of association and articles of association if it is a company
- Profit and loss account for the last few years
- Income tax assessment order