Home Loan EMI Calculator
What is home loan EMI calculator?
The home loan EMI calculator can help you know the exact EMI amount you would pay every month to help you plan your cash flow.
The EMI or equated monthly instalment is the amount that includes a part of the principal amount and interest on the principal amount outstanding. Here the principal amount is the home loan amount you want to borrow.
The proportion of the principal amount and interest in the EMI keeps changing. In the beginning, you will pay more towards the interest than towards the principal amount. Later, it is the other way around.
Using a common mathematical formula banks and financial institutions calculate the EMI, and therefore, the amortization schedule given by them are similar for a certain amount of loan, interest and tenure.
Factors Affecting Housing Loan EMI
Principle - The amount you borrow from the lender is referred to as the principle. It is proportionate to your EMIs, i.e., the lower the principal, the lower the EMIs. Your monthly payments will be smaller, and vice versa.
Interest rate- The interest rate is the amount that the lender charges you for the loan. It is also proportionate to the amount owed on your mortgage.
Tenor- The tenor is the length of time you have to repay your mortgage. The tenor of your loan is inversely related to the EMIs, therefore the lower the EMIs, the longer the tenor. Keep in mind that a longer tenor means a greater interest outgo.
Calculate your Home Loan EMI?
The online calculator given is an easy-to-use tool to help you plan your home loan EMI. It processes the basic details you provide based on the assumptions.
Therefore, the results generated solely and completely depend on the information provided by you. IDFC FIRST Bank does not guarantee accuracy, completeness or correctness of any details provided therein.
What are the Benefits of Home Loan EMI Calculator?
There are many advantages of using the EMI calculation tool provided by BankBazaar. They are listed below:
Easy process: You only have to enter the loan amount, interest rate, processing fee (if available), and tenure. No complicated calculations or difficult mathematics. The actual computation will be taken care of by the calculator.
Get the breakup of the finance charges: This tool helps you understand the financial charges such as total interest payable, and processing fee value associated with your EMI.
**Comparing loan offers:**You can use the loan calculator to compare loan offers from various banks. The results will show you the total cost of each loan along with their respective EMIs. This will help you narrow down on the most feasible option.
Choosing the right tenure: Knowing your EMI also helps you choose the right tenure of the loan. If you can afford to pay a higher EMI, you can choose a shorter loan period and pay off your loan at the earliest. Otherwise, you can pay a more comfortable EMI and extend your loan period.
Helps in validating information: If you are negotiating a housing loan deal with a bank, you can verify the repayment schedule it provides. The repayment table details from the calculator can help you verify this. Do keep in mind that the numbers may sometimes differ. This is because lenders may also include certain other fees and charges in your EMI calculation.
Helps with loan management: Sometimes, while paying your EMIs, you may have some extra funds to make prepayments. If you want to revisit the financials and see how prepayments can help to pay off the loan before the term ends, the home loan EMI calculator can help you do that.
Who can apply for a Home Loan?
- Salaried Individuals
- Self-employed person with a source of continuous verifiable income
What documents are required to get a Home Loan?
- Duly filled application form
- Age proof
- Residence proof (passport, driving license, any other certificate from Statutory Authority)
- Salary-slips
- Form 16
- Bank statements