|
0
|
50L
|
100L
|
150L
|
200L
%
|
5
|
7.5
|
10
|
12.5
|
15
|
17.5
|
20
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0
|
5
|
10
|
15
|
20
|
25
|
30

Total EMI

49,919

Total Interest

69,80,559

Total Payments

1,19,80,559

Break-up of Loan Amount
Created with Highcharts 4.2.2 50,00,000 69,80,559 Total Interest Principal Loan Amount
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About Allahabad Bank

Allahabad Bank has the distinction of being one of the oldest banks in India. It has a history of existence since 1865. The credit for opening this bank goes to a group of Europeans who established a bank at the confluence city of Allahabad. Allahabad Bank was in the first lot of banks to be nationalised in July 1969. The predominantly North Indian bank has been merged with Indian Bank in the recent bank merger exercise. This merger will enable the bank to have a footprint in the southern part of the country with the help of the Indian Bank.

Over 150 years, Allahabad Bank has gone from strength to strength. It offers an array of deposit and loan products to its clients all over India.

Allahabad Bank Home Loan is one of the most popular loan products of the bank. The characteristics of Allahabad Bank Home Loan are its competitive rates of interest. Allahabad Bank offers high-quality technological services such as internet and mobile banking, EMI Calculators, and facilities to open accounts online.

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.

Allahabad Bank Home Loan EMI Calculator - How to Use It?

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 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 30 Lakhs
  • The rate of interest is 9%
  • The loan repayment tenure is 25 years

We shall use the calculator and find out the EMI.

  • The EMI works out to 25,176
  • The total interest payable on the loan for 25 years is 45,52,767
  • The entire repayment amounts to 75,52,767

Now, consider a moratorium period of 18 months.

  • The new EMI works out to 28,800
  • The interest payable now works out to 52,08,185
  • The interest for the moratorium period is 4,31,881
  • The total amount payable amounts to 86,40,066

Allahabad Bank Home Loan EMI Calculator - Factors That Affect the Calculation

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.

 

Rate of interest - 8.50% Rate of interest - 9.50%

 

20 Lakhs

30 Lakhs

20 Lakhs

30 Lakhs

10 years

24,797

37,196

25,355

38,003

15 years

19,695

29,542

20,285

30,428

20 years

17,356

26,035

17,995

26,992

25 years

16,105

24,157

16,784

25,176

Points to note:

  • For 10 years @ 8.50%, the EMI for 20 Lakhs is 24,797. It is higher at 37,196 for 30 Lakhs.
  • For 15 years @ 8.50%, the EMI for 20 Lakhs is 19,695, whereas it is more at 20,285 when the ROI is 9.00%.
  • For 10 years @ 8.50%, the EMI for 20 Lakhs is 24,797. It reduces to 16,105 for 25 years.

Alternate Ways of Calculating the Home Loan EMI

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

Allahabad Bank Home Loan EMI Calculator - Advantages

  • Estimate your upcoming Home Loan liability before you apply for the 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

Allahabad Home Loan EMI - Income Tax Benefits

Individuals can avail of benefits and concessions under the Income Tax Act for repaying their Home Loans. Sec 24 of the Act offers IT concessions up to 2 Lakhs on the interest repayment of Home Loans. Sec 80C provides IT benefits up to 1.50 Lakhs on the repayment of the principal part of the Home Loan. These benefits are available to joint accounts, as well.

Allahabad Bank Home Loan EMI - Factors Affecting the EMI Amount

  • 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.

Allahabad Bank Home Loan EMI Calculator - FAQs

What are the different types of calculators that Allahabad Bank offers on its website?

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 deposits with the bank.

What makes the Allahabad Bank Home Loan EMI Calculator unique?

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.

Is it better to pay the pre-EMI interest or to allow it to accumulate and add it to the principal loan amount?

The borrower will benefit if they pay the pre-EMI interest every month. It helps to save a considerable portion of interest.

How is the payment of pre-EMI interest beneficial to the borrower?

This example will help you understand the benefits of payment of pre-EMI interest:

Assume the Home Loan amount of 30 Lakhs @ 9% for 25 years

If the borrower pays moratorium period interest, the monthly EMI is around 25,176. The borrower ends up paying 75.52 Lakhs over the whole tenure of the loan. The interest for the moratorium period could be around 4 Lakhs. Thus, the total liability of the borrower is around 79.52 Lakhs.

If the borrower opts to accumulate the interest and add it to the principal amount, the EMI shoots up to 28,800. The total repayment, along with moratorium interest is around 86.40 Lakhs.

Thus, the borrower can save up to 7 Lakhs overall.

How does Allahabad Bank charge interest on the Home Loan?

Allahabad Bank charges interest on the daily reducing balances of the Home Loan. It is most beneficial to the customer.

Which category of borrowers opts for equated half-yearly or quarterly instalments?

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.

Will the EMI calculation change with a variation in the interest rate?

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.

How does the bank deal with the semi-fixed interest rate loans?

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.

Is the Home Loan EMI Calculator on the Allahabad Bank website accurate enough?

Yes, the Allahabad Bank Home Loan EMI Calculator is an accurate tool. If you provide the right information, you get accurate EMI calculation.

How can you determine your Home Loan eligibility using the Home Loan EMI Calculator?

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.