Allahabad Bank Home Loan EMI Calculator

Calculating the Home Loan EMI is a tricky task. As it is, the manual formula for calculating the EMI can be challenging to decipher. Besides, Home Loan accounts come with features like a moratorium, upfront subsidies, and semi-fixed rates of interest. It makes it all the more challenging for anyone to calculate the Home Loan EMI accurately. Therefore, the Home Loan EMI Calculator tool becomes a handy instrument.

Allahabad Bank has a unique Home Loan EMI Calculator on its webpage. The speciality of this Home Loan EMI Calculator is that it is useful for calculating the EMI in moratorium-based loans, as well. Not many Home Loan EMI Calculators offer this facility.

Additional Info: Also check Rs. 1 Crore Home Loan EMI

Using the Allahabad Bank Home Loan EMI Calculator is a straightforward process. The customer has to enter the following data:

• The Home Loan amount
• The rate of interest per annum
• The loan repayment tenure in years

This data should be enough to give you the EMI amount. Apart from the EMI amount, this calculator provides you details of total interest payable for the whole tenure of the loan. It also includes information about the total amount payable inclusive of interest.

This calculator has a unique feature. It helps you to calculate the EMI amount if there is a moratorium period in the Home Loan. If there is no holiday period, customers can keep this field blank. However, if the bank stipulates a moratorium, this calculator accounts for the moratorium, as well. It calculates the EMI accordingly. It also calculates the interest for the moratorium separately.

This facility of calculating the home loan interest for the moratorium period and adding it to the principal loan amount for calculating the EMI distinguishes this tool from the others.

This example will clear the air.

• Assume the loan amount to be Rs. 30 Lakhs
• The rate of interest is 8.50%
• The loan repayment tenure is 25 years

We shall use the calculator and find out the EMI.

• The EMI works out to Rs. 24,157
• The total interest payable on the loan for 25 years is 42,47,044.
• The entire repayment amounts to 72,47,044

Additional Info: Also check 75 Lakh Home Loan EMI

The EMI calculation depends on three variable factors:

• The loan amount - The more the amount, the larger is the EMI
• Rate of Interest - The higher the rate, the bigger is the EMI
• Loan tenure - The longer the period, the smaller the EMI

This table will explain things better.

Points to note:

• For 10 years @ 8.50%, the EMI for 20 Lakhs is Rs. 24,797. It is higher at Rs. 37,196 for 30 Lakhs.
• For 15 years @ 8.50%, the EMI for 20 Lakhs is Rs. 19,695, whereas it is more at Rs. 29,542 when the ROI is 8.50%.

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Home Loan EMI Calculators are available at various third-party websites. One such EMI Calculator is also available on our site, MyMoneyMantra.com. The calculator works on the same principles. It requires the necessary information like loan amount, rate of interest (ROI), and loan tenure. This calculator is similar to the one available on the Allahabad Bank website, as it enables the customer to calculate the total interest and amount payable over the complete tenure of the loan. However, the EMI Calculator with MyMoneyMantra does not have provisions for calculating EMI with the involvement of a moratorium.

The Traditional Method

Nowadays, you have EMI Calculators to make it easy for the customers to determine their Home Loan EMI. However, one should know the old-fashioned way to calculate the EMI.

The formula is EMI = [PR(1+R)^N] / [(1+R)^N-1] where,

• P denotes the principal loan amount
• R represents the rate of interest in months
• N signifies the number of months (loan tenure)

MS Excel Tables

Using MS Excel tables to calculate Home Loan EMI is easy. The following formula should do the trick:

EMI = PMT(rate, nper, pv)

• PMT - Formula function for EMI
• Rate - ROI per month
• NPER - Loan tenure in months
• PV - Loan amount

Know in detail: Simple Interest Formula Calculation.

• Estimate your upcoming Home Loan liability before you apply for Allahabad Bank Home Loan
• Knowing your future monthly obligations can help you plan your budget better
• The EMI Calculator can help to enhance your eligibility, as well
• Check and confirm whether the banks have stipulated the accurate EMI
• Know the interest and principal repayment breakup for the whole tenure of the loan
• Estimate the moratorium period interest
• Calculate EMI after accounting for the moratorium period

• PMAY subsidy: Allahabad Bank is a premier lending institution under PMAY. The beneficiaries under PMAY qualify for a Government grant or an upfront interest subsidy. This amount is credited to the loan account immediately. As the principal loan amount reduces by the amount of subsidy, it affects the EMI accordingly.
• Floating rate of interest: Allahabad Bank offers floating rates of interest on Home Loans. The RLLR and MCLR-linked rates of interest vary along with the market-linked rates. Thus, every rise or fall in the ROI beings about a corresponding change in the EMI. Allahabad Bank chooses to maintain the EMI as constant while altering the loan tenure.
• Default in payment of EMI: The EMI Calculator estimates the EMI by assuming that the borrower will be regular in the repayment of the EMI. Any default in the repayment attracts a penalty. It increases the liability of the borrower. The borrower should clear the pending instalments along with the penal interest. If they do not do so, it affects the interest component, and thereby, the EMI.
• Part prepayment: When you have surplus funds at your disposal, you can make a part prepayment. This payment can bring down the overall loan liability considerably. Borrowers have the option to request the bank to alter their EMI accordingly for the residual tenure.
• Moratorium period: Generally, the banks stipulate moratorium period for Home Loans sanctioned for construction purposes. The moratorium can extend up to 18 months. The bank expects the borrower to service the interest during the moratorium period. This servicing of the interest is known as pre-EMI interest servicing. Borrowers can accumulate the interest and repay them along with the Home Loan principal. Under such circumstances, the EMI is calculated on the principal loan amount and the moratorium period interest together.

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