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  • Canara Bank Home Loan EMI Calculator

    Knowing your EMI is an important part of applying for a home loan. It can help you compare various loans and see which one is the most advantageous to you. BankBazaar’s Home Loan EMI Calculator gives you a way of knowing how your loan repayments are to be done. The amortisation table gives you the individual principal and interest portions of your EMI as well.

    Read on to find out how you can make the most of this tool while applying for your Canara Bank Housing Loan.

    What is amortisation?

    This is a financial term used to describe the process in which your loan will be repaid over the tenure you have chosen. It shows you your EMI and also gives you the breakup of the interest and principal components for each month. This way you will be able to find out how much interest you will pay in total over the period of your loan.

    Canara Bank Housing Loan Interest Rates

    As of 24 Apr 2019, Canara Bank charges the following interest rates for its home loans - 8.75% p.a. to 9.4% p.a. for general customers and between 8.7% p.a. and 9.35% p.a. for women. The Canara Home Loan Plus (term loan) carries an interest rate of 11.45% p.a.

    Canara Bank Housing Loan processing fee

    The bank charges you a processing fee of 0.5% of your loan. This is, however, subject to a minimum of Rs.1,500 and a maximum of Rs.10,000.

    Canara Bank Housing Loan amount and Tenure

    The bank offers you a property loan of up to Rs.3 crore. The maximum tenure you can choose is 30 years.

    Amortisation of your Canara Bank Housing Loan

    If you want to know how your loan from Canara Bank will amortise over a period of 10 years, take a look at the following illustration. We’re assuming a few details for this purpose:

    Loan amount: Rs.10 lakh

    Interest rate: 8.9%

    Tenure: 10 years

    Processing fee: Rs.5,000 (10,00,000 x 0.5%)

    EMI: Rs.12,614

    The table given below shows you the repayment schedule:

    Year Principal Paid - A (Rs.) Interest Paid - B (Rs.) Total Payment - A+B (Rs.) Outstanding Loan Balance (Rs.)
    2019 53,736 72,397 1,26,133 9,46,262
    2020 69,952 81,409 1,51,361 8,76,310
    2021 76,439 74,923 1,51,362 7,99,871
    2022 83,529 67,837 1,51,366 7,16,344
    2023 91,272 60,091 1,51,363 6,25,073
    2024 99,733 51,627 1,51,360 5,25,339
    2025 1,08,981 42,380 1,51,361 4,16,358
    2026 1,19,086 32,273 1,51,359 2,97,271
    2027 1,30,130 21,234 1,51,364 1,67,143
    2028 1,42,194 9,169 1,51,363 24,949
    2029 24,949 278 25,227 0

    Note: The figures in the table may vary from the actual figures given by the bank in case the bank charges certain other fees as well.

    Should you choose a long or short loan tenure?

    The period of your loan determines how long you have to repay what you owe to the bank. Some people prefer a short tenure of say 5 to 10 years while others may prefer a longer term of about 20 to 30 years. Your tenure usually depends on how much money you will be able to put aside every month to pay your EMI.

    For example, in the above illustration, the repayments come up to around Rs.1.5 lakh per year for the next 10 years. This is around Rs.12,600 every month. If this is within your budget, a 10-year period will be sufficient for you. If not, choose a longer tenure of say 15 years and pay a lower EMI. But always remember that the longer your loan period, the more interest you will pay.

    Factors affecting Canara Bank Housing Loan EMI

    Let’s take a look at the main factors that have an effect on your monthly repayments:

    • Principal: The amount that you initially borrow has a direct impact on the monthly instalments. Since the principal is directly proportional to your EMI, the higher the principal, the higher your EMI will be.
    • Interest Rate: The rate at which the lender or the bank offers the loan to you plays an important role in determining the EMIs. Interest rate and EMIs are directly proportional to one another. If the interest rate goes up, the monthly repayment amounts will also increase.
    • Tenure of Loan: The loan tenure also plays a very important role in the determination of the home loan EMIs. If the tenure is shorter, you will have to pay higher EMIs every month. However, the total interest amount that you pay in the long run will go down if the tenure is shorter.

    Canara Bank Housing Loan EMI Calculator FAQs

    1. What do I get from calculating my Canara Bank loan EMI?

    Calculating your monthly payments when you take a housing loan from Canara Bank can help you in a number of ways, some of which include:

    • You can have better control and clarity over your monthly expenses budget. By knowing exactly how much to pay every month, you can structure the rest of your expenses around it.
    • The principal-interest ratio will give you an idea of how much your loan will cost. That is, you get to know how much interest you will have to pay.
    • BankBazaar’s tool also allows you to include prepayment details to show you your repayment schedule.

    2. How do part payments or prepayments help in the long run?

    When you infuse your loan account with additional payments, it reduces the outstanding principal amount, which in turn reduces the interest charges. This is because the interest is charged on a reducing balance method. This will help you clear the loan a lot quicker.

    3. Do all EMI calculators function in the same way?

    Yes, every EMI calculator that uses the principal amount, interest rate, and tenure for calculation works in the same manner. BankBazaar’s calculator also gives you the amortisation details so that you know how much of each EMI goes towards repaying the principal and how much is charged as interest.

    4. Why are the interest charges in the amortisation table higher during the initial months of the loan?

    Since the interest rate is applied on the basis of “reducing balance” principle, the interest charges are slightly higher during the initial phase since the principal outstanding is higher. As this amount reduces, the incidence of interest also comes down proportionately.

    5. Is the result displayed accurately?

    While every EMI calculator works based on the given inputs, there may be a slight difference in the result due to the inclusion of other fees and charges by the lender.

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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