If you wish to own a home but do not have enough funds to do the same, then home loan is a great option for you. It is a very common loan as so many people avail this loan from various banks and NBFCs in India. You can use the amount for building your dream house. For you, it is a fixed asset and also for your children and so on. To understand the amount to pay monthly as repayment, you need to know how much equated monthly instalment (EMI) you have to pay.
You can calculate this amount manually, however, it is time-taking to do so by own, and you may even land up making calculation mistake. To do away with such hassle, we have our own free-to-use EMI calculator for home loan. Loanbaba provides all the information about Home Loan EMI Calculator. The loan has a fixed repayment duration in which you have to pay the amount back along with interest and other charges as per the discretion of the lender.
The calculator calculates the EMI is real time and tells you the instalment amount in just a second, thus doing away with troubles of manual calculation. You can use this tool over and again on our website, without having to create an account on the site. The online EMI calculator home loan will help you plan your finances in a wise manner by telling you the interest payout, principal amount, and the total instalment to be paid.
Home Loan is a blessing for people with no houses of their own. This loan helps to fulfil this dream. Getting this loan is not difficult but to pay the instalments and calculate the interest that needs to be paid is somehow difficult for people. The lender be it bank or any financial company helps you to have idea about this but you need to be very clear about the total payment and EMIs before availing the loan as you will need to pay the amount for such a long duration. Like noting the EMI, you need to also check for your loan eligibility, for which you can use our home loan eligibility calculator as well.
The tenure of this loan can be up to 15 years or more. The lender calculates the EMI on the basis of amount of the loan, tenure and interest rate. You must know about all these variables for calculating the EMI. The very first and main variable is the amount of the loan. For instance, let's say the total amount is fifty lakh rupees. This amount will play a major role while calculating the EMI. The next crucial variable for calculating the instalment is interest rate. The lender fixes this rate according to its discretion. It will calculate the instalment as per this rate. Generally the rates for this loan start from 10.15%.
Other important variable is the amount of the interest that the borrower has to pay to the lender. The next variable is the loan's tenure which is the time duration in which the borrower has to repay the amount. For instance, if the tenure of the loan is twenty years then the borrower will pay the amount in instalments for next twenty years.
To understand the pattern of repayment, you can utilize the loan EMI calculator, and enter details such as loan to be borrowed, fees, interest rates, other liabilities etc. In case you want to repay the loan before the term ends, then you can also calculate the exact amount you have to pay to the balance period. The calculator notifies you immediately about the repayment schedule and helps you take decision about the loan and financer.
Calculating the instalment is essential not just for home loan but for each loan you avail. This helps in having an idea of your expenses in a month. Salaried people get fixed amount so they need to do preplanning about their monthly expenses. People in business should also have an idea about the instalment to know the expenses they need to bear each month instead of the fact that their income is not fixed. Thus, calculating EMI is very essential in all aspects.
Below mentioned are important question about Home loan and housing loan EMI:
Formula to Calculate the EMI of Home Loan: A very simple formula is applied for calculating the instalment that is given below:
EMI = P.i.(1+i)^n / {(1+i)^n & ndash; 1},
Here,
P is amount of the loan
I is Interest rate
N is loan's tenure
The EMI can be calculated easily by applying this formula.
At loanbaba.com, you can get calculator for loan EMI calculation based on banks. Some of the examples are SBI home loan EMI calculator, HDFC home loan EMI calculator etc. However, the generic calculator will also work similarly on our website.
In case of late payments, additional charge will apply on repayment along with the decided EMI for the month. Different banks have different fee and penalties for delayed payment. You can compare home loan offers by financial institutions and charges applied to understand the conditions regarding late payments.
By doing part repayment, the borrower can reduce the repayment duration. He /she needs to repay a part of the loan in advance which decreases the amount of the loan and interest amount. It has no effect on the EMI. The EMI is not reduced but the duration is lowered. It is a long term loan, thus if the borrower is able, he/she can pay a large part of the total amount that is payable anytime during the tenure. As a result, the principal amount gets decreased and then the interest is calculated based on the decreased principal amount. So in this way the tenure also gets reduced.