Calculating your Equated Monthly Instalments (EMIs) is one of the most integral part when deciding on a home loan. One of the easiest and simplest ways to do so is using an online home loan EMI calculator. BankBazaar's home loan EMI calculator is one such tool which is extremely helpful in calculating the monthly instalments to be made against your housing loan. The automized system provides both the EMI and the amortization schedule for your loan. The amortization schedule is a table indicating how much of your monthly instalments are being contributed towards the principal and interest component of your home.
As of 23 Apr 2019, the rate of interest applicable to Indiabulls home loans ranges between 8.70% p.a. and 11.20% p.a. depending on the type of home loan you are opting for. While the interest rate associated with fixed rate home loans ranges from 9.25% p.a. to 11.20% p.a., the effective rate of interest for floating rate home loans falls between 8.70% p.a. and 11.00% p.a. While the rate of interest associated with Indiabulls floating rate housing loans for others ranges between 8.75% p.a. and 11.00% p.a., women borrowers can avail the same at reduced rates ranging from 8.70% to 10.95%.
The processing fee associated with Indiabulls home loans as of 23 Apr 2019 is as follows:
|Loan Slab||Processing Fee|
|Up to Rs.30 lakh||Up to Rs.10,000*|
|Above Rs.30.01 lakh and up to Rs.3 crore||Up to 0.50%*|
|Above Rs.3 crore||0.50% to 1.00%*|
The above fees are exclusive of taxes and any surcharges applicable will be added.
You can avail an Indiabulls home loan starting from Rs.2 lakh and up to Rs.3 crore for a maximum loan tenure of 30 years.
Let us assume that you are looking to avail a home loan of Rs.20 lakh from Indiabulls Housing Finance Limited spread over a tenure of 30 years. Suppose the interest rate offered by the bank is 9.00% and the processing fee levied on your loan is 1.00% of the principal I.e., Rs.20,000. Once you key in the required inputs on the BankBazaar Home Loan EMI Calculator, click on ‘Calculate’.
The EMI calculated on your home loan is Rs.16,092. The break-up of the total amount payable during the entire loan tenure will be:
|Total interest due||Rs.37,93,283|
|Total Amount Payable||Rs.58,13,283|
The amortization schedule illustrating your debt repayments over a period of 30 years from March 2019 to February 2049 will look something like this.
|Year||Principal Amount Paid (A)||Interest Amount Paid (B)||Total Amount Paid (A + B)||Outstanding Loan Balance|
Though choosing a short-term or long-term tenure is ultimately your decision, there are a few important aspects you must consider before opting for one.
Age:One of the important factors that home loan lenders consider while deciding your home loan tenure is your age. The older you are, the shorter home loan tenure you will have to opt for as you will only have a short span of time to repay your home loan before retirement. However, you can always make your son/daughter as a co-applicant who is also the co-owner of the property when you are closing in on your retirement after which the bank/NBFC will consider extending the tenure of your loan based on your child’s age.
On the other hand, if you are in your 20s or 30s, you can always consider opting for longer home loan tenures, as you would have enough time to repay your loan debt without affecting your finances.
Income: Your monthly income is again another important factor on which you can decide on choosing between a short-term or long-term home loan. If you are having a high monthly income with no other ongoing loans, you can consider opting for a home loan with a shorter tenure. You could be able to pay higher Equated Monthly Instalments (EMIs) taking your monthly salary into consideration to get rid of the burden of your home loan sooner. However, it would be wise to ensure that your personal finances before opting for a tenure as the monthly instalments can consume a huge portion of your income if not careful.
Similarly, if you are having a low income, you can consider choosing a home loan with longer tenures as it would ensure that the EMIs do not impact your personal finances during the period.
Rate of Interest: The interest rate associated with your home loan is nothing but cost of credit you would be paying for the loan. The longer your tenure, the higher the rate of interest will be. This will eventually result in you paying higher EMIs during the tenure. This is where an online home loan EMI calculator comes in handy. Not only will the EMI calculator provide the monthly instalments you will have to make against your home loan but also an amortization schedule which illustrates how much of your EMI is being put into the interest and principal components of your home loan.
1. What is the function of a Home Loan EMI Calculator?
A Home Loan EMI Calculator computes the monthly instalments you will have to make against the home loan based on various parameters such as the principal, loan tenure and the rate of interest associated with the home loan.
2. How is Home Loan EMI calculated?
In order to calculate the EMI on the home loan, you should know the rate of interest, loan tenure and the principal amount being borrowed.
The formula to calculate EMIs on home loans is:
r: The rate of interest applicable on your home loan
n: Number of monthly instalments
3. What is Home Loan Amortisation Table?
The Amortization Schedule or Table is a detailed table illustrating how your Equated Monthly Instalments (EMIs) are being made towards your home loan. The table also shows how much of EMIs are being lined up towards the interest component and principal component on an annual as well as monthly basis.
4. Can I make partial prepayments on Home Loan EMIs?
Yes, you can make partial pre-payments on your home loan. Partial payments on your loan will help you in bringing down the outstanding principal amount which in turn will lower your home loan EMIs or the loan tenure.
5. Can I avail tax benefits by getting home loan on EMI?
Yes, you are eligible for tax deductions on your home loan. As per Section 24B of The Income Tax Act, you can avail tax benefits up to Rs.2 lakh on the interest component of your home loan. Similarly, under Section 80C of The Income Tax Act, you can claim tax deductions up to Rs.1.5 lakh on principal repayment of your home loan.
6. What is Pre-EMI?
Pre-EMI in the interest paid on the partially disbursed loan amount and prior to the start of the regular EMI. The actual EMI only starts once the entire loan amount is disbursed until which only Pre-EMI is applicable.
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