The document discusses home loan interest rates and how increasing rates can negatively impact borrowers over time by increasing EMIs. It provides an example showing how a 1% increase in interest rate over 20 years of a Rs. 20 lakh loan significantly increases the interest portion and decreases the principal portion of each EMI payment. The document recommends that borrowers proactively pay additional principal amounts regularly to offset rising interest rates and keep the loan favorable for the borrower over the full term.

1. INTERSTING Home Loans Tired of increasing EMI’s of Home Loan & you think there is no respite ? ? “ INTEREST” ing Home Loans TO

6. Look at it this way… EMI = + Interest Principal

7. Example # 20-9-20 Loan of Rs.20lacs @ 9 % for 20 yrs EMI = 17,995/- EMI(17995)=INT(15000)+PR(2995)

8. Rate hike by 1% Loan of Rs.20lacs @ 10% for 20 yrs EMI = 17,995/- EMI(17995)=INT(16666)+PR(1329) DID YOU MAKE THE DIFFERENCE OUT ?

9. Another 1% rise Loan of Rs.20lacs @ 11% for 20 yrs EMI = 17,995/- EMI(17995)=INT(18333)+PR(-338) ?