{"id":5433,"date":"2023-08-28T17:18:12","date_gmt":"2023-08-28T17:18:12","guid":{"rendered":"\/blog\/?p=5433"},"modified":"2024-07-01T10:42:07","modified_gmt":"2024-07-01T05:12:07","slug":"lower-emis-come-at-a-cost-do-you-know-it","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-home\/lower-emis-come-at-a-cost-do-you-know-it\/","title":{"rendered":"Lower EMIs Come at a Cost. Do you Know it?"},"content":{"rendered":"\n

You might think that there is something wrong here. How come we are\ntelling you that lower EMIs are something to be careful of? Isn\u2019t it?<\/p>\n\n\n\n

But in general, you need to be careful when you borrow. And more so when\nyour EMIs are lower. It\u2019s possible that you are missing out something\nimportant.<\/p>\n\n\n\n

So what is it that is so important?<\/p>\n\n\n\n

Let\u2019s take a small example to help you understand it.<\/p>\n\n\n\n

Suppose you purchase a house that costs a total of Rs 40 lacs. Of this,\nthe lender will only give you loan for 80% of the cost and rest has to be\nprovided by you as downpayment. So the loan you will get is about Rs 32 lacs.<\/p>\n\n\n\n

Now the interest rate being charged is 9%.<\/p>\n\n\n\n

Since you prefer low EMIs, your lender has told you that you can opt for\na very long tenure loan and it will reduce the EMI. So you have decided to go\nin for 25-year tenure.<\/p>\n\n\n\n

So for 25-year tenor, your home loan<\/a> EMI is Rs 26,854.<\/p>\n\n\n\n

Additional Read:<\/strong> Top 5 factors that affect your home loan EMI <\/a><\/p>\n\n\n\n

But let\u2019s see what you EMI would have been, if you had taken a loan for\nshorter tenure. Calculations show that EMIs will be as follows:<\/p>\n\n\n\n