Home loans are being offered by all the major banks and non-banking financial companies in India. These loans are available to all who have a regular source of income, are citizens of India, and are businessmen, self-employed, or salaried individuals, among others. The online home loan calculator will definitely help you find and know the exact Equated Monthly Instalment or EMI that you will be paying every month to repay the whole home loan amount.
Home Loan Calculator To Know The EMI
As we know, home loans are often of quite larger value and may be repaired in 10, 20, or even 30 years, making them one of the longest tenure loans in India. During this period of time, the borrower pays the EMI to the lender or financial company every month. As we can find it obvious, the longer the tenure of the loan, the lower the EMI amount will be. Home loans are being offered at both floating and fixed interest rates. Floating interest rates may vary during the repayment tenure as they are linked to the market. When a home loan has a fixed interest rate, the EMI amount remains the same throughout the repayment tenure. Floating interest rates are usually lesser when compared to fixed interest rates. Because the financial market remains stable in the long run (for instance 20 or 30 years) a home loan with a floating interest rates remains a viable and more affordable option.
You will have to put in the principal amount, interest rate, and a number of months you will pay the EMIs in the online home loan calculator boxes to know the exact EMI you will be paying each month to the lender company. The formula for that is described below.
EMI = [P x R x (1+R)^n] ÷ [(1+R)^n-1]
P= Principal amount
R= Interest rate (for instance if the interest rate is 24% per annum, for the month it will be 24/12=2%)
N=total number of monthly installments (for instance 60 for a loan to be repaid in 5 years)
EMI= actual monthly installment that the borrower pays to the bank each month.
Additional Read: How Loan EMI Calculator Helps In Selecting Best Home Loan Option
Home Loan Calculator To Know The EMI
As we know, home loans are often of quite larger value and may be repaired in 10, 20, or even 30 years, making them one of the longest tenure loans in India. During this period of time, the borrower pays the EMI to the lender or financial company every month. As we can find it obvious, the longer the tenure of the loan, the lower the EMI amount will be. Home loans are being offered at both floating and fixed interest rates. Floating interest rates may vary during the repayment tenure as they are linked to the market. When a home loan has a fixed interest rate, the EMI amount remains the same throughout the repayment tenure. Floating interest rates are usually lesser when compared to fixed interest rates. Because the financial market remains stable in the long run (for instance 20 or 30 years) a home loan with a floating interest rates remains a viable and more affordable option.
You will have to put in the principal amount, interest rate, and a number of months you will pay the EMIs in the online home loan calculator boxes to know the exact EMI you will be paying each month to the lender company. The formula for that is described below.
EMI = [P x R x (1+R)^n] ÷ [(1+R)^n-1]
P= Principal amount
R= Interest rate (for instance if the interest rate is 24% per annum, for the month it will be 24/12=2%)
N=total number of monthly installments (for instance 60 for a loan to be repaid in 5 years)
EMI= actual monthly installment that the borrower pays to the bank each month.
Additional Read: How Loan EMI Calculator Helps In Selecting Best Home Loan Option
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