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:
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.
We shall use the calculator and find out the EMI.
Additional Info: Also check 75 Lakh Home Loan EMI
The EMI calculation depends on three variable factors:
This table will explain things better.
|Rate of interest - 8.50%|
|Rs. 20 Lakhs||Rs. 30 Lakhs|
|10 years||Rs. 24,797||Rs. 37,196|
|15 years||Rs. 19,695||Rs. 29,542|
|20 years||Rs. 17,356||Rs. 26,035|
|25 years||Rs. 16,105||Rs. 24,157|
Points to note:
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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,
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)
Know in detail: Simple Interest Formula Calculation.
Additional Info: Also Check LRD Loan
Allahabad Bank offers two types of calculators for the convenience of its customers:
Home Loan EMI Calculator to enable easy calculation of their Home Loan EMI Deposit calculator to help customers determine the maturity value of their fixed deposit with the bank.
Allahabad Bank Home Loan EMI Calculator is unique because it accounts for the moratorium factor. Usually, banks insist on the customers to service the pre-EMI interest during the moratorium period. The customers can also request the bank to accumulate the moratorium and add it to their Home Loan accounts. Under such circumstances, the EMI calculation is a different one. Allahabad Bank Home Loan EMI Calculator enables this type of calculation, as well.
The borrower will benefit if they pay the pre-EMI interest every month. It helps to save a considerable portion of interest.
Allahabad Bank charges interest on the daily reducing balances of the Home Loan. It is most beneficial to the customer.
The bank fixes EMI because the borrowers receive their income/salary every month. However, farmers and other agriculturists do not earn a monthly income. Their income generation coincides with the harvesting season that can be quarterly, half-yearly, or even yearly. Such categories of borrowers do not prefer EMI.
Allahabad Bank prefers to vary the loan tenure by maintaining the EMI as constant. However, circumstances can arise when the bank might have to change the EMI, as well. This process can cause the bank to use the EMI Calculator again to determine the new EMI.
The semi-fixed interest rate Home Loans have a fixed rate of interest for a specific period, after which it changes to a floating nature. The calculation of the EMI for the fixed tenure is straightforward. The bank has to recalculate the EMI when the floating rate of interest takes over. The EMI Calculator should be handy to cater to such circumstances.
Yes, the Allahabad Bank Home Loan EMI Calculator is an accurate tool. If you provide the right information, you get accurate EMI calculation.
The Home Loan EMI Calculator determines the Home Loan repayment liability for the borrower. Thus, you are aware of your monthly obligations for a specific amount of loan at the contracted rate of interest and tenure. If you can afford a higher EMI, you can do a reverse calculation to arrive at the maximum loan amount, depending on your affordability.