₹30 Lakh Home Loan EMI Calculator for Planned Repayment – How to Use
Before taking such an important financial decision, you may want to carefully consider certain factors such as your income and monthly expenses to assess how much EMI you can afford. EMI (Equated Monthly Instalment) is the monthly instalment amount for home loans and repayment, which remains fixed throughout the tenure.
A home loan EMI calculator is a handy tool for finding the right monthly instalment amount. With it, you can easily calculate the EMI payable and total interest amount for a home loan. You can change the interest rate and loan tenure to compare EMIs payable for home loans offered by different financial institutions.
Benefits Of Using ₹30 Lakh Home Loan EMI Calculator
- Can Assess Affordability – Purchasing a new home with a loan is an important financial decision of your life. Using an EMI calculator, you can find out if a given loan amount and tenure results in an EMI that you can afford to pay.
- Can Assess Repayment Capacity– Knowing the EMI amount is a crucial part of financial planning for a home loan. You can use this information to estimate the loan amount you can avail and assess your repayment capacity.
- It’s Easy To Use – It is an easy-to-use online tool that anyone can use to find out the payable EMIs. There is no need for complicated calculations that can result in mistakes.
- Get Loan Details And Breakup – The calculator will show a detailed breakup of the total cost of your loan and the amount to be repaid.
- Can Compare And Decide – You can compare loan offers of different financial institutions.
- Step 1: Enter the loan amount using the given slider or enter the value, for example, Rs. 30 lakh.
- Step 2: Use the slider or type in the home loan’s tenure, for example, 10 years.
- Step 3: Enter the interest rate charged by the financial institution, for example, 6.5%.
The EMI calculator will display the EMI payable as well as the total loan amount. You can also readjust any of these values to calculate again.
How Does The Home Loan EMI Calculator Work?
Calculating the home loan EMI on an online calculator is quite easy. You only have to type in the loan amount, tenure and interest rate in relevant fields. The EMI calculator uses the following formula to calculate the EMIs.
EMI = [P x R x (1 + R)^n] / [(1 + R)^n – 1]
Where,
- P is the principal amount (Rs. 30 lakh in this case)
- R is the rate of interest per month
- ‘n’ is the number of monthly instalments
Example:
Mr. Mehta has availed a ₹ 30 lakh home loan with a 7.5% interest rate and a tenure of 15 years. The monthly rate of interest would be 0.625%.
His EMI for the home loan is given below:
EMI = [Rs. 30,00,000 x 0.625 x (1 + 0.625)^180] / [(1 + 0.625)^180 – 1] = ₹ 27,810.
Thus, he will have to pay a monthly EMI of ₹ 27,810 for 15 years.
Factors Affecting Home Loan EMIs
The following factors have a direct influence on your home loan EMIs:
- Interest Rate: The home loan EMI is directly proportional to the rates of interest. If you have a home loan with floating interest rates, changes in the prevailing market rates will also have a positive or negative impact on your EMIs.
- Principal Amount: The loan amount you borrowed directly affects the home loan EMIs. Financial institutions consider factors such as your monthly salary, current age, credit score, work experience and existing liabilities to decide your loan eligibility.
- Tenure: Opting for a longer tenure makes your EMI more affordable but increases the loan’s cost. On the other hand, if one chooses a shorter tenure, he/she will have to pay higher EMIs. That said, the overall cost of borrowing will be lower.
- Prepayment: If you have surplus funds, you can choose to prepay your loan. This would lower the outstanding balance, which would lower the EMIs. Some financial institutions charge a penalty for prepayment or foreclosure.
- Shifting To A New Lender: You can transfer your existing loan to a new lender to take advantage of favourable interest rates and lower EMIs. Before transferring your loan, check the costs involved to make sure that you save money.
Also Read
- Flexible EMIs- Financial institutions like Navi offer flexible tenures of up to 25 years. This lets you choose an EMI that you can easily pay.
- Competitive interest rates: Home loan interest starts as low as 8.74% pa at Navi. The lowest interest rate is offered to eligible customers with good credit scores and stable income.
- Instant loan approval: You can apply for a loan through a completely paperless process. The approval time is much faster than traditional loan applications.
To fulfil your dream of buying a new house, download the Navi app and apply for a home loan!
Final Word
With a home loan of ₹30 lakh, you can construct a new independent house or purchase an apartment. Use the EMI calculator for informed and better financial planning. Navi offers home loans at competitive interest rates starting at 8.74% p.a. You can get financial assistance of up to Rs. 10 crore. These loans come with easy-to-fulfill eligibility criteria. Moreover, you can get approval almost instantly through a completely paperless process.
Home Loan Offers in Your Budget
FAQs
Ans: Home loan EMIs have different interest and principal components, with initial instalments having more interest and less principal components. The loan amortization schedule is a table detailing the breakup of these amounts along with respective dates.
Ans: Depending on the financial institution, there are several ways in which you can repay your home loan EMIs. You can send post-dated cheques or issue standing instructions to your bank to automatically pay the EMI amount on the due dates.
Ans: Sometimes, financial institutions disburse the home loan in stages. In such cases, you have to make repayments only after the final disbursement is complete. Till the full disbursement, you need to pay only the pre-EMIs, applicable on the partially disbursed loan.
Ans: Yes, the more you pay as a down payment, the less are the home loan EMIs. Financial institutions have requirements for the minimum down payment, but you can pay a higher amount to decrease your monthly burden.
Ans: Most financial institutions require you to furnish the following documents for a home loan:
• Proof of identity
• Proof of residential address
• Bank account statements
• Salary slips
• Form 16
• Latest income tax returns
• Property documents
Before you go…
Are you looking to buy that house you’ve been eyeing 🏠 and you need a loan of up to ₹5 crore. Install the Navi app now and get instant in-principle approval right away! Interest rates starting at 8.60% p.a.
Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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