EMI is the sum of money that you as a borrower will pay your lender to clear your outstanding loan. These payments are made every month on a date that is stipulated by your bank till such time that the loan has been completely repaid. The three things that go into the calculation of an EMI are:
The amount of the loan
The rate of interest
The tenure of loan
The most popular method of computation is that of ‘monthly reducing loans’. In the monthly reducing cycle, the principal is reduced with every EMI and the interest is calculated on the balance outstanding. The majority of the retails such as Home loans, auto loans and personal loans are computed on a monthly reducing basis.
Kindly be informed that an increase in the tenure of the loan will lead to an increase in interest rates and therefore, the interest component of your loan. As a borrower, you should try and pay as much of EMI as possible and shorten the tenure of the loan.
Down Payment is the commitment a buyer makes to enter into a home loan agreement with your lender. Always, a range of 15-30 % of the value of the property one intends to purchase is always acceptable. The more money you can put aside for a down payment the better it is since it will result in a shorter tenure of a loan and easier EMIs.
This basically refers to why you need the loan. Is it for Construction, purchase, extension or improvement of residential & commercial properties? And where is the location of the property? This information is key in getting started.
Most home shoppers find a lender based on a recommendation from a friend or real estate agent, but that won’t guarantee you’ll get the best rate or the best service. Homes in Uganda does research on mortgage professionals in Uganda and thus shares with you the best advise and the best rates.
Homes in Uganda is creating a mortgage marketplace that encourages transparency on all levels and for all eligible Ugandans.
There is no greater joy than having a roof over your head that you can call your own home. You have worked hard to save for your down payment and putting your papers in order to get your home loan sanctioned. But the fact is that your test has only begun, for you will be servicing your mortgage for a good number of years now and that is indeed a huge responsibility. A home loan is a debt like any other and the sooner it is closed the better it will be for you. Lets help you with some key moves:
Partial pre-payment of loans– This is one of the easiest ways to reduce your debt burden. Every time you get a bonus, a cash gift from family or friends or any other gains as a result of investments made in the past, direct them towards making pre-payments on your home loan. All banks allow a certain number of prepayments in a year without any extra cost.
Switching to a bank offering better interest rates- If you find that you are stuck in a higher band of interest for a long period of time compared to the current market rates, you can consider switching your loan to a bank which offers you a loan at a better rate of interest.
Increase your EMI outflow-You will end up paying off your debt faster if you can consider the option of increasing your EMI outflow. You can consider this option if you get a pay hike or redirect funds from an endowment plan towards this end.
Customers can enjoy a flexible repayment tenure of up to 30 years.
An extensive range of specially crafted home loan products & solutions like home extension loans, automated repayment of EMI and home improvement loan
Quick and efficient loan processing with door-step service
Absolutely no hidden charges and completely transparent process
Extensive branch network for loan servicing and availing, anywhere across the country
Now Move to the Next Step
Mortgages don’t have to be difficult. Get pre‑approved for a mortgage or Loan is a great way to show Lenders that you’re a serious and credible buyer. Go here, check out our verified lenders, determine how much mortgage or loan that you and then answer a few questions to find a local lender in minutes who can help you get pre-approved.
DISCLAIMER: The loan amount, interest rate, eligibility, tenure, EMI and special offers are at the sole discretion of the Bank involved. Loan offers may vary depending on your credit profile and the other criteria defined by each bank. As homes in uganda, we only connect you to our affiliate banks.