Check Home loan EMI on the new Home loan calculator to calculate as per the applicable new formula to get exact EMI and per the new interest rates announced…
Home Loan Calculator
In this growing world, the Indian land value and the property market have grown tremendously over the past few years with buyers all across the country fetching different sources to invest in properties and lands. If you have found a good property that you would love to buy then in this financial state, the best and the wise option is to go for a home loan from a bank or a financial institution.
So basically, banks and other financial institutions will provide buyers with credit money as home loans for them to purchase their selected home and then repay the banks in EMI over the selected tenure period.
But before you do so, it is important for you to understand how does the new home loan EMI might affect your present financial freedom and in order to do so you can make use of Home loan EMI calculator which is a precise tool that can determine the EMI per month over your selected tenure of time.
In this way, this calculator will be able to identify the amount payable every month over the loan tenure period providing you insights and realistic options to think and understand even before you take on a home loan in the future.
What is a Home Loan EMI Calculator in SBI, HDFC, ICICI & Axis Bank
Home loan EMI calculator is nothing but a simple tool that will determine the EMI amount you need to pay for a bank or financial institution through whom you have opted for the home loan, and it will take into consideration the value of your home, then the interest rate per annum over the selected period of tenure then provide you with the EMI that is payable every month over the tenure period.
So, basically, it shows how much EMI per month you need to pay and also gives you estimated money you would have paid at the end of completion of home loan tenure providing you brief insights if the loan rate from the service selected is a good option or not.
So you might feel that calculating such EMI would be an easy task, but the prospect is that there are different variables that are taken into consideration while the home loan is calculated which cannot be processed manually, and even if you do it manually, it will eventually take time and it is not an error free process which is why even banks and financial institutions suggest you use Home loan emi calculator for this.
Considering the same, banks across Indian have already created their own home loan calculator for their users or anyone that is accessible for free online, and some of the most significant banking services that have provided this feature are SBI, HDFC, ICICI & Axis Bank.
Home Loan EMI Calculator Formula
We all understand that using a free home loan EMI calculator is an easy task but for someone who is willing to pay lakhs in rupees to buy their first house or take a loan to get a new home, and then, it would be more diligent to understand how does this formula actually works and that is why 99employee.com have explained below the home loan emi calculator formula along with the factors that define it as we see.
E = [P x R x (1+R) ^N] / [(1+R) ^N-1]
In the above formula you will be finding at the end the EMI amount payable which is defined by E
The other factors that are required to correctly identify the EMI are
- P is the principal amount which means the value of the home
- R stands for the rate of interest of the home loan
- N stands for the home loan tenure in years
Though we have provided you with the above formula and the factors, still it is advisable to use an online EMI calculator for a home loan to get accurate and error-free EMI amounts to be paid.
Home Loan EMI calculator with Prepayment
The term prepayment actually means when there is a case of a home loan being cleared before the tenure ends for the loan. In simple words, if you have paid the home loan on an EMI for the first 5 years and then you wish to prepay the rest 5 years from the total of 10 years then you need to use the home loan EMI calculator with prepayment to decide the remaining money to be paid in one go.
In such a case, it is more advisable to go over to the bank or the financial institutions where the loan has been opted and discuss with them the next steps to prepay and clear your present loan, but in normal cases, the prepayment amount can be calculated through the following method.
EMI Amount * Remaining Years in Tenure = Prepayment
There is no high interest rate or lower interest rate because the interest rate from the bank is already applied under the EMI amount.
What is a Home Loan Eligibility Calculator?
There is no such thing as an eligibility calculator for a home loan and it depends on your CIBIL score along with the financial stability of your profile. In case if you have a good CIBIL score over 750+ along with no big loans or EMI then most of the banks and financial institutions will be able to provide you with an home loan offer.
In case if you already have loans then you will receive home loan offers but there would be a higher interest rate in those cases.
Home Loan EMI Calculation
EMI stands for Equated Monthly Installment which means the monthly installment to be paid for a home loan over the selected period of tenure, and it is calculated by taking into consideration the principal amount of your home, tenure in annum, and the interest rate.
One of the questions most of the new home buyers would have is why is the total loan amount at the end of the complete tenure more than the principal amount of the home itself. And the reason for that is because there is an interest rate applied per annum over the selected period of tenure.