The shortage of funds is a common problem for people who wish to build their own homes. In such cases, home loans seem to be the best option. While you take up a loan, you must also be aware of the regular EMIs that you will have to pay.

Here are a few important factors that can affect your home loans EMIs. Have a look at these points:
1. Fluctuation in interest rates: Fluctuation in interest rates can affect your EMIs both positively and negatively in accordance with the market. The interest may differ according to the change in the base rate or the MCLR decided by the RBI.
2. CIBIL score: CIBIL score is what makes the lender offer you lower interest rates. Most lenders typically prefer a score of not be less than 750. The credit score usually varies from 0.25% to 1.5%. The difference isn’t much but changes the total loan cost with considerable increases.
3. Repaying your Home Loan Principal Amount: Housing loans also provide their customers with the option of pre-payment. This leads to the reduction in the outstanding amount, which thereafter results in the reduction of EMI or repayment tenor. Although if you invest in any other financial schemes, and the interest earned here is more than that you save by pre-payment, then pre-payment on your home loan is non-profitable. Keep in mind that you must calculate your EMIs before you apply for repayments in advance. The use of an EMI calculator is advisable to avoid errors. Hope it will help you to know how to calculate home loan EMIs.