What is home loan EMI

When you’re buying a new house or apartment, you are likely to take a home loan. EMI is a common term when you go for home loans by banks such as columbia bank aberdeen or any other bank. Below, you will find some valuable information about EMI.

What is an EMI

Equated Monthly Installment or EMI is the mode that facilitates monthly repayment of loans. EMI includes both interest and principal. EMI is calculated by dividing the amount of money disbursed by the number of planned repayment months. EMI-based repayment begins from the month following the time when the amount is fully disbursed to you.

Columbia Bank
1154 NJ-34, Aberdeen Township
NJ 07747, United States
Phone: +1 732-203-9880

The annual documents that are issued by banks after EMI payments

 Ideally, every bank provides you with a statement showing the total principal and interest that is to be repaid the following year. This statement helps you not only plan your expenses but also as a document aiding in a tax deduction. 

Other than this statement, banks also issue a statement at the end of the year. This statement states the amount of money actually repaid. This statement, too, will aid in taking tax benefits.

How low EMIs help

When considering taking home loans, you should always look for offers that require you to pay the lowest EMI. This is because, with low EMIs, you can enjoy your property just as much without having to put monthly pressure on yourself.

A tenure of about 20 years seems good enough for a home loan. However, make sure that the offer you choose will not charge you early repayment charges. This way, you will not have the compulsion of repaying too much every month, but if you have enough surplus, you can repay as early as you like.


EMI is an important factor to consider while considering potential loan offers. It is the way of repayment of bank loans.