EMI Calculator For Home Loans Of Up To Rs. 50 Lakh

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.

How to Use Navi’s EMI Calculator for Home Loans?

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.

Also Read – How To Choose Banks/ NBFCs For Home Loans?

Benefits of Using EMI Calculator for Rs. 50 Lakh Home Loans

Here are some benefits of using Navi’s EMI calculator for home loans:

• Calculation of home loan EMIs involves complex formulas that are easy to get wrong. The EMI calculator saves you from the hassles of such complex calculations and provides accurate results. 
• A home loan is a long-term financial commitment that becomes a part of your monthly expense for years. Thus, having a snapshot of monthly EMI payments will help you make an informed decision.
• You can use this calculator to figure out the right tenure for your loan. With a high-value loan (for example, a Rs. 50 lakh home loan), you can choose a longer tenure to make the EMIs affordable. On the other hand, if your income is high enough, you can choose a shorter tenure to repay at the earliest.

But, where can you get such a high-value loan?

Also Read – How To Calculate Home Loan Eligibility For Non Resident Indians?

Navi offers home loans at competitive interest rates starting at 6.46% 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.

How Does Home Loan EMI Calculator Work?

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] 

Where,

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.

What Factors Affect EMIs of Your Home Loan?

Interest rates

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. 

Principal amount

This is the loan amount you have availed from the financial institution. The higher the loan amount, the higher will be the EMIs payable.

Tenure

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.

Prepayment facilities

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. 

Financial institution

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. 

Interest Rates for Rs. 50 Lakh Home Loan

Take a look at the following table to know which financial institutions are offering the best rates for home loans.

Name of the Financial Institution	Home Loan Interest Rates Starting at
Union Bank of India	6.40%
Bank of Maharashtra	6.40%
HSBC Bank	6.45%
Navi	6.46%
Bank of Baroda	6.50%
Kotak Mahindra Bank	6.55%
State Bank of India	6.70%
Yes Bank	6.70%
HDFC Bank	6.70%
Axis Bank	6.75%

Final Word

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.   

Frequently Asked Questions

What is an amortization schedule for a home loan? 

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.   

 How do the interest and principal components of an EMI vary?

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.

 How can you increase your eligibility for high-value loans?

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. 

 Can borrowers decrease their loan burden by shifting to another lender?

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.

What documents are usually required to apply for a home loan?

Most financial institutions require the following documents for a home loan:

• Age proof (Aadhaar, voter ID card, PAN card etc.)
• Proof of residential address (Aadhaar, passport, telephone/electricity bill)
• Identity proof (voter ID, PAN card, passport, driving license) 
• Proof of income 
• Property documents

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