Home Loan EMI 2020
|Banks||Interest Rate||Lowest EMI/lakh|
|Private Bank||6.95%||Rs. 662|
|Axis Bank||7.75%||Rs. 716|
|Bank of Baroda||6.85%||Rs. 655|
|UCO Bank||7.85%||Rs. 720|
|United Bank of India||6.70%||Rs. 645|
|Punjab National Bank||8.85%||Rs. 794|
|Bank of Maharashtra||7.05%||Rs. 669|
About Home Loan EMI Calculator
A Home Loan EMI Calculator aids in the calculation of the payable EMI in advance. Systematic financial planning is required to pay off your home loans within the tenure period without causing a default. Assessing ones own repayment capability before opting for a housing loan is essential to avoid any financial mess. To aid you better, Dialabank offers you a free of cost Home Loan EMI Calculator. EMI stands for Equated Monthly Instalment, which is the monthly instalments that a borrower must pay in the form of repayments of the loan amount.
Dialabank’s Home Loan EMI Calculator is an easy-to-use online tool, which can be used anytime free of cost to calculate the monthly instalments that a borrower is liable to pay to its lender depending on the loan amount, interest rates prevailing and the tenure period of the loan.
What is Equated Monthly Instalment?
An Equated Monthly Instalment or EMI is a repayment method in which the borrower is liable to repay the principal amount and the interest, in equal instalments every month, to the lender until the end of the tenure period the loan. Knowing your EMI in advance with the help of a home loan EMI calculator helps to know the amount of money to be kept aside every month and to check if you can easily pay off the monthly instalments. Thus, an EMI payment includes both the interest and the principal amount of the loan. The EMI amount is dependent on the following major four factors:
- Loan amount borrowed: Input the desired loan amount that you wish to borrow.
- Loan tenure: Input the desired loan term in years you wish to avail of the loan.
- Interest Rates prevailing
- CIBIL score of the borrower
Benefits of Home Loan EMI Calculator
A home loan EMI Calculator serves the following purpose:
- Easy process: On entering the loan amount, interest rate, processing fee, and tenure, the entire EMI amount can be calculated easily.
- Helps in validating information: you can easily verify the repayment schedule the bank provides through an EMI calculator. The repayment table details from the calculator can help you verify this.
- It helps in calculating the loan affordability in advance
- The loan amount can be decided accordingly
- Assists in planning out the loan repayment
Click here to check the Home Loan Interest Rates 2020.
Influence of Home Loan Interest Rates on EMI Amount
When looking for a home loan, every borrower should first enquire about the interest rate. This is because the home loan interest rate is one of the significant factors that influences your EMI amount to be paid every month. Higher home loan rates increase the home loan EMI and reduce the ability to take on a more considerable loan amount and vice versa. Conversely, lower home loan interest rates increase the possibility of:
- prepay EMIs as much as possible
- take on a more significant home loan amount
- take up a top-up loan or a second loan
- reduce the loan tenure
The formula to determine home loan EMI amount
Home loan EMI Calculator works on the following simple formula:
EMI=[P x R x (1+R)^N]/[(1+R)^N-1]
EMI – Equated Monthly Instalment
P – Principal amount (the total amount borrowed as a loan)
R – the current rate of interest (interest rate should be monthly)
N – the number of EMIs to be paid till the completion of loan repayment (tenure should be in months)
How to Calculate Home Loan EMI Using Excel Sheet?
Using this formula might consume some time for a person, so the home loan eligibility criteria will instantly enable the same results instead of using the manual calculation. Of course, the same formula can also be included in the MS Excel sheet, but the home loan EMI calculator saves you time and effort.
Example: if you borrow ₹15,00,000 from the bank as a housing loan amount at 6.95% annual interest for a period of 10 years (i.e., 120 months), then EMI = ₹1500000* 0.00579 * (1 + 0.00579)120 / ((1 + 0.00579)120 – 1) = ₹17378. i.e., you will have to pay ₹17378 for 120 months to repay the entire loan amount. The total amount payable will be ₹13,493 * 120 = ₹2085317 that includes ₹ 585317 as interest toward the loan.
How to use Dialabank online home loan EMI calculator?
The steps to follow while calculating your home loan EMI amount are as follows:
- Click here to visit the EMI Calculator.
- Enter your loan information, including the total loan amount, rate of interest and tenure.
- Click on calculate.
- A detailed Payment Information will be calculated instantly, including your EMI amount, Total payable amount, and Total interest rate payable by the end of the tenure.
Components of a Home Loan EMI Calculator?
The Home Loan EMI Calculator depicts the following 3 components:
- Home Loan EMI: is the total amount that a borrower is liable to pay in the form of EMI every month to its lender until the loan tenure. This amount helps both the lender and the borrower evaluate the affordability and repayment capacity of the borrower.
- Payment Breakup: The second important component of the EMI calculation result is the breakdown of the total amount that borrowers will be paying to their lenders in the form of small details, like principal amount, processing fee amount and the interest amount.
- Amortization Schedule: While paying an EMI amount every month, the EMI is divided into 2 main parts, i.e. the Principal amount and the interest rate. The percentage of EMI going towards the respective two components is an amortization schedule.
The amortization schedule contains all the necessary information related to home loan repayments, such as loan amount, a period of scheduled payments and outstanding balance. Financial institutions prepare the amortization schedule by employing systematic complex mathematical calculations and formulae. Thus, a home loan EMI calculator gives a detailed breakup of the entire EMI amount.
Flexible and Fixed Home Loan EMIs
|Fixed Interest Rate||Floating Interest Rate|
|Higher Interest Rate||Lower Interest Rate|
|Not affected by financial market conditions||Affected by changes in the financial market|
|Fixed EMIs||EMIs change as per interest rate or MCLR|
|Budget planning possible||Difficult to budget or manage financials|
Partly Disbursed Loan: In the case of partly disbursed housing loans, the pre-EMIs will eventually increase with each disbursement during the loan tenure.Flexible EMIs: If you have opted for step-up or step-down property loans, then you may get an option to top for a flexible EMI, and there will be a change in your loan EMIs with time. If you have opted for step-up loans, your EMI will gradually increase over the loan repayment tenure. Whereas in the case of step-down loans, your EMIs will decrease with time. Usually, your home loan EMIs are a fixed amount. But under certain circumstances, it can change into flexibility. Some of these instances are:
- Loan Prepayment: You can either choose to reduce the EMI for the same loan tenure or reduce the loan tenure and keep the EMIs constant by paying off a certain amount of your loan amount in the form of prepayment.
- A rise in the floating interest rate: With a change in the repo rate, the floating rate of interest also changes. If the floating rate increases, the lender will increase the loan tenure while keeping your EMI the same. But, if the new tenure exceeds the maximum period permitted, then the bank may increase your EMI.
- Also, visit eligibility criteria for home loans at Dialabank.
Home Loan Pre-EMI
Some of the lenders disburse the loan amount in stages. In such situations, you will have to start paying your EMI amount only when you get the final amount from the lender, and the whole loan has been disbursed. Until the whole amount is disbursed, you will have to pay only the interest applicable to the partly disbursed amounts. This is termed pre-EMI. Once the complete loan is disbursed, the borrower will be required to pay complete EMIs on the entire amount.
Factors Affecting Your Home Loan EMI?
Your monthly EMIs are affected by several factors that decide your EMI amount every month. Some of these factors are:
- Principal: The principal is the total loan amount that you initially borrowed from the lender. The higher the loan amount is, the higher will be the EMI amount.
- Interest Rate: The interest rate is what rate your lender charges for your loan amount. It shows you the cost of your loan and differs from one bank to another. A lower interest rate can help you lower your EMI amount.
- Prepayments: As mentioned earlier, making prepayments on your property loan can help you reduce the outstanding principal. This, in turn, reduces your interest charges. And both together contribute to lowering your EMIs if you prefer to keep the tenure constant.
- Tenure: The time you take to repay the amount you borrow is called tenure or the loan period. The tenure is inversely proportional to your EMI. The longer the loan tenure, the lower your EMI amount gets. Various factors like your age determine the loan tenure at the time of borrowing and your retirement age. The longest loan tenure offered by banks in India is around 30 years.
- Processing Fee: This value is a percentage of your loan amount or a pre-determined fee charged by the lender. It is the fee that the bank charges to process your loan application. This amount is usually payable at the time of filling the loan application.
- Also, check the documents required for a home loan.
Home Loan EMI Calculation per Lakh for All Banks
|SBI Home Loan EMI||₹ 662||6.95%|
|HDFC Home Loan EMI||₹ 662||6.95%|
|Private Home Loan EMI||₹ 662||6.95%|
|Axis Home Loan EMI||₹ 716||7.75%|
|LIC Home Loan EMI||₹ 659||6.90%|
|CBI Home Loan EMI||₹ 655||6.85%|
|BoI Home Loan EMI||₹ 655||6.85%|
|BoB Home Loan EMI||₹ 655||6.85%|
|Canara Home Loan EMI||₹ 659||6.90%|
|Bank of Maharashtra Home Loan EMI||₹ 669||7.05%|
|Union Bank Home Loan EMI||₹ 672||7.10%|
|DBS Bank Home Loan EMI||₹ 686||7.30%|
|Kotak Home Loan EMI||₹ 692||7.40%|
|IOB Home Loan EMI||₹ 696||7.45%|
|Citibank Home Loan EMI||₹ 699||7.50%|
|South Indian Bank Home Loan EMI||₹ 713||7.70%|
|IDBI Home Loan EMI||₹ 720||7.80%|
|UCO Home Loan EMI||₹ 723||7.85%|
|HSBC Home Loan EMI||₹ 730||7.95%|
|UBI Home Loan EMI||₹ 645||6.70%|
|IDFC First Home Loan EMI||₹ 734||8.00%|
|Federal Home Loan EMI||₹ 744||8.15%|
|Karur Vysya Home Loan EMI||₹ 748||8.20%|
|Dhanalakshmi Bank Home Loan EMI||₹ 751||8.25%|
|Karnataka Bank Home Loan EMI||₹ 758||8.35%|
|Tata Capital Home Loan EMI||₹ 769||8.50%|
|Tamilnad Mercantile Bank||₹ 780||8.65%|
|IIFL Home Loan EMI||₹ 783||8.70%|
|Bandhan Bank Home Loan EMI||₹ 787||8.75%|
|PNB Housing Loan EMI||₹ 794||8.85%|
|Standard Chartered Home Loan EMI||₹ 795||8.86%|
|DHFL Home Loan EMI||₹ 841||9.50%|
What are the Tax Benefits of Paying Home Loan EMIs?
Borrowers can claim certain taxes benefits on availing of a home loan. The government offers certain tax reliefs via the Income Tax Act, 1961, on the EMIs you pay every year. Some of the main exemptions are as follows:
- Section 80C: under which you can claim a tax deduction of up to ₹ 1.5 lakh on the entire principal amounts per year paid towards your property loan.
- Section 24: Under this section, you can claim a deduction of up to ₹ 2 lakh only on the interest component you pay every year.
- Section 80EE: Under this section, you can claim an additional interest amount of up to ₹ 50,000 per year on the loan amount. This is in addition to the exemptions mentioned in Sections 80C and 24.
News on Home Loan EMI Calculator
Private Bank has lowered its home loan interest rates to 6.75 per cent.
For May, Private Bank cut home loan rates to draw more borrowers. The interest rates on new home loans begin at 6.75 per cent. As a result, home loan borrowers will benefit from the new home loan rates.
Bajaj Home Finance has lowered the interest rates on its Top Up loans.
Top-up loan rates at Bajaj Home Finance have been reduced to 8%. The new rates will take effect on May 10, 2021.
Axis Bank lowered its balance transfer rates on home loans to 6.70 per cent.
To entice home loan borrowers, Axis Bank lowered its balance transfer prices. The new rates begin at 6.70 per cent and go up from there. The new rates will take effect on May 1, 2021.
FAQs About Home Loan EMI Calculator
✅ How will banks decide my home loan eligibility?
The home loan eligibility will be determined on the basis of your income and repayment capacity. Other important requirements include your age, qualification, number of dependents, your spouse’s income (if any), assets & liabilities, savings history and the stability & continuity of occupation.
✅ When will my Home Loan EMIs payment start?
Payment of EMI’s begins subsequent to the month in which disbursement of the loan is done. For loans for under-construction properties, EMI usually starts after the total home loan amount is disbursed. Still, the customers can themselves choose to begin their EMI’s repayment as soon as they avail of their first disbursement. For resale cases, the lender makes the whole loan amount is disbursed in one go. Thus the EMI on the whole loan amount can start from the month of disbursement.
✅ What is the maximum amount I can avail myself of in a Home Loan?
A range of 75 to 90% of the property cost is what you can avail of as a home loan. In the case of construction, home improvement and home extension loans, 75 to 90% of the construction/improvement/extension estimate can be funded. Your eligibility will define the home loan amount. Thus, use the home loan EMI calculator to calculate your payable amount in advance.
✅ Are different home loans available for women?
Yes, certain lenders like HDFC Home loan offer lower home loan interest rates for women as compared to the general rates prevailing. However, women have to be an owner or a co-owner in the property to enjoy low-interest rates for which the home loan will be availed.
✅ How can I repay my home loan?
Various lenders offer different modes for repayment of the home loan. For example, you may issue standing instructions to your banker to pay the instalments through ECS (Electronic Clearing System), opt for direct deduction of monthly instalments by your employer or issue post-dated cheques from your salary account or use a cheque payment mode. To allow you a better approach and avoid any financial crisis, use the home loan EMI calculator.
✅ How does the Home Loan EMI Calculator work?
The home loan EMI Calculator includes an automatic formula that calculates the entire EMI amount using the loan principal amount, interest rate, and tenure period.