Are you planning to purchase a new house with a Rs. 50 lakh home loan?
You may want to do some financial planning before taking such an important decision in your life. The EMI calculator for home loans is a simple and easy-to-use tool that will help you calculate the monthly EMI (Equated Monthly Instalment).
All you need to do is enter a few values, such as your preferred loan amount and duration of the loan. This calculator will then tell you the payable EMI, the total interest and principal amount.
Now, let’s find out how one can use an EMI calculator for home loans.
Rate of Interest (P.a)
Loan Tenure (Years)
Follow the simple steps to use this tool:
Step 1: Enter the loan amount (for example, Rs. 50 lakh).
Step 2: Fill in your home loan tenure (up to 30 years).
Step 3: Enter the interest rate of your home loan. You can find this information on the website’s home loan product page.
Step 4: Click on ‘Calculate’ to get the EMI payable and the total amount payable.
Step 5: You can readjust any of the above values to calculate EMI again.
Here are some benefits of using Navi’s EMI calculator for home loans:
But, where can you get such a high-value loan?
Navi offers home loans at competitive interest rates starting at 8.39% p.a. You can get home loans of up to Rs. 10 crore with additional features such as on spot approval, flexible EMIs and LTV of up to 90%. Download the Navi app to get approval for your dream loan in just 5 minutes.
A home loan EMI calculator calculates monthly instalments based on the principal amount, interest rate and tenure of the loan. It uses the compound interest formula to determine the home loan EMI. This is given below:
EMI = [P *R *(1+R)^n]/[(1+R)^n-1]
P is the principal amount (total borrowings)
R is the interest rate per month
n is the loan tenure in months
Let us take the following example to see how this formula works.
Mrs Sharma took a Rs. 50 lakh home loan from a financial institution. It carried a 7.5% interest rate p.a (or 0.625% per month) and tenure of 15 years (180 months).
According to the above formula, her EMI for the loan would be —
EMI = [50,00,000*0.00625*(1+0.00625)^180]/[(1+0.00625)^180-1] = Rs. 46,351
Therefore, she would have to pay Rs. 46,351 as a monthly instalment for her home loan.
Interest is what you will pay for your borrowing, and it differs from one financial institution to another. With floating interest rates, your EMIs will change depending on changes in the international market and RBI policies.
This is the loan amount you have availed from the financial institution. The higher the loan amount, the higher will be the EMIs payable.
It is the time period over which you have to repay the loan and is determined by your age at the time of borrowing. EMIs decrease with an increase in tenure, but the overall interest burden increases, making it more expensive.
Some financial institutions charge nominal or no fees for prepayment and foreclosure. If you have surplus funds, you can prepay part of your loan to reduce the outstanding balance and EMIs.
You can choose to shift your home loan to a different financial institution to enjoy better interest rates. This could reduce your debt burden if you can get a favourable deal.
Take a look at the following table to know which financial institutions are offering the best rates for home loans.
|Lending Institutions||Interest Rates Starting From (per annum)|
|Navi Home Loans||8.39% onwards|
|Kotak Mahindra Bank||7.50% onwards|
|Axis Bank||7.60% onwards|
|Yes Bank||8.95% onwards|
|ICICI Bank||7.60% onwards|
|HDFC Bank||7.55% onwards|
|Bank of Baroda||7.45% onwards|
|Bank of India||7.40% onwards|
|LIC Housing Finance||7.50% onwards|
|Federal Bank||8.55% onwards|
|Union Bank of India||7.40% onwards|
|Reliance Home Finance||9.75% onwards|
Before making the decision to apply for a Rs. 50 lakh home loan, you may want to do some financial planning. Navi’s home loan EMI calculator is a convenient tool for the purpose; it allows you to avoid the hassles of manual calculations. You can use it anytime and anywhere to make an informed financial decision.
Ans: Home loan amortization is the process of reducing debt over the loan tenure with regular payments. Amortization schedule refers to a table providing a break-up of the interest and principal components of the loan over the repayment period.
Ans: Though home loan EMIs remain fixed, the interest and principal components vary throughout the loan repayment period. Generally, initial repayments contribute more towards the interest component, while later instalments go towards the principal. The amortization schedule provides the corresponding balance of each component.
Ans: For high-value loans (such as Rs. 50 lakh home loan), you should make sure that your loan EMI is not too high (40% or below) compared to your monthly income. Other factors that decide your loan eligibility include your credit score and regular expenses.
Ans: Yes, borrowers can transfer the balance of their existing home loans to a different lender to enjoy lower interest rates. However, before getting a balance transfer, ensure that your overall saving from better rates is more than the additional costs involved in the balance transfer.
Ans: Most financial institutions require the following documents for a home loan:
1. Age proof (Aadhaar, voter ID card, PAN card etc.)
2. Proof of residential address (Aadhaar, passport, telephone/electricity bill)
3. Identity proof (voter ID, PAN card, passport, driving license)
4. Proof of income
5. Property documents
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.
|Home Loan Interest Rate||Home Loan EMI Calculator||Home Loan Tax Benefits|
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