Bank of India Home Loan EMI Calculator

An estimation of the Home Loan equated monthly instalment (EMI) gives you a clear idea to channelise your finances as per the monthly expenses. The EMI Calculator is of great help to determine the EMI amount you will have to pay against the Home Loan. The Bank of India Home Loan EMI Calculator is precise and instant as well.

It helps you to reduce the financial stress as you are aware of the EMI amount you will have to pay prior to applying for the Home Loan. In case the EMI amount is higher than the monthly budget, you can adjust the Home Loan amount to arrive at affordable EMI.

The borrower will have to enter important loan parameters such as loan amount, interest rate, and loan tenure to arrive at the monthly EMI.

The monthly fixed amount that a borrower pays for a fixed tenure towards the repayment of the loan is EMI. This amount is to be paid by the borrower on a fixed date every month.

The maximum Home Loan tenure at Bank of India is 30 years. The lowest EMI at Bank of India is 689 per lakh at the rate of interest of 7.35% Bank of India provides affordable Home Loan interest rate to encourage purchasing and owning of a house.

Results of Bank of India Home Loan EMI Calculator at different tenures and amounts at 7.35% interest rate.

The above table gives a clear idea of the importance of the Home Loan tenure. The EMI amount increases or decreases as per the Home Loan tenure. The longer the loan tenure, the lower your EMI will be even if the interest rate is the same. So if you apply for a Home Loan for a duration of 30 years, your monthly EMI will be less but your overall interest outgo will be more.

But if you apply for the Home Loan for a duration of 15 years the EMI amount will be high but the interest outgo will reduce. Thus, it is very important to carefully choose the right Home Loan tenure to meet your requirements.

The EMI is made of principal component and an interest component. With every EMI the borrower pays the principal amount gets reduced even if the EMI is constant. The proportion of principal and interest component changes with every EMI. The principal repayment increases and interest component reduces with the payment of each EMI against the Home Loan.

The below-mentioned table uses the MyMoneyMantra EMI Calculator to calculate the interest on the Bank of India Home Loan at various loan tenures. 

Assuming the Home Loan amount is 1 Lakh at the rate of interest of 7.35%

The above table gives a clear understanding of the EMI amount and Loan tenure. The interest outgo increases for the longest tenure Home Loans.

For example, if you apply for the Home Loan of 1 Lakh for a tenure of 30 years, the EMI will be 689, but the total interest outgo will be Rs. 1,48,030. However, if you apply for the same amount for a tenure of 5 years, the EMI will be Rs. 1,997 but the overall interest will be Rs. 19,800. The borrower should consider all the factors while deciding the Home Loan tenure. It is very important to choose the right Home Loan tenure to save considerable interest outgo.

 You can also Calculate Rs. 1 Crore Home Loan EMI and compare interest rates with Top Banks.

The formula used by the EMI calculator is P*r* (1+r)^n/([(1+r)^n]-1)

Here, for Bank of India Home Loans:

P = Loan amount which can go up to 5 Crores

r = Rate of interest/month, which starts at 8.45% at present

n = tenure in months, which can be maximum 360 months for Bank of India Home Loans

You can also know in detail about Simple Interest Formula Calculation.

• Loan amount: The Home Loan amount plays a vital role in determining the Home Loan EMI the borrower needs to pay to the bank each month till the complete payment of the Home Loan. The higher the loan amount the higher will be the EMI amount as well. Bank of India provides the Home Loan of up to Maximum 5 Crores.
• Interest rate: The rate of interest charged on the Home Loan amount has an impact on the EMI amount. The higher the rate of interest levied by the bank the higher the EMI amount will be. The minimum rate of interest on the Home Loan at Bank of India is 7.35% for women and 8.50% for other borrowers. It is important to study all the parameters and do complete research before finalising a lender for your Home Loan.
• Loan tenure: The Home Loan tenure is the period within which the borrower should repay the Home Loan in full. The Home Loan tenure is decided based on the borrower's age at the time of applying for the Home Loan. The maximum Home Loan tenure at Bank of India is 30 years. The longer your Home Loan tenure the lower the monthly EMI amount.
• Occupation of the borrower: Salaried individuals have an advantage of getting a comparatively lower interest rate of Home Loans as compared to self-employed individuals.
• Type of loan opted for: The different Home Loan interest rates are offered at Bank of India depending upon the type of loan a borrower is opting for such as a Home Loan with an overdraft facility, floating rate Home Loan or fixed rate Home Loan.
• Existing bank customers: Existing customers have an advantage over non-existing customers as the Bank of India offers special rates and discounts to its existing account holder taking into consideration their past relationship with a bank.

• Decide the Home Loan amount you need to borrow: An estimation of Home Loan amount prior to applying for the Home Loan is a must. It gives a clear idea to the borrower about the amount they are eligible for. The Home Loan amount is determined based on the property value and repayment capacity of the borrower. It is advised to opt for minimal Home Loan amount it is a long term loan. The bank does not finance the entire property. The LTV depends upon the market value of your property and your eligibility. You will need to fund the property with the available funds.
• Take into consideration all your current obligations: Before taking a loan it is advisable to do an evaluation of your current monthly expenses including any EMI obligations that you have on your current loans. The assessment will help you to estimate the amount of EMI you can pay comfortably after taking into account other obligations. Once you arrive at the EMI you can service, you can also decide on the right loan tenure.
• Calculate your Bank of India Home Loan eligibility: The Home Loan offered by Bank of India is based on the assessment of the property value as well as repayment capacity of the borrower. The repayment capacity of the borrower is analysed on the basis of their monthly income. The LTV of up to 80% is provided by the Bank of India on the Home Loan. The rest 20% has to be arranged by the borrower from their own sources.
• Fixed Income to Obligation Ratio (FOIR) is one of the most important parameters that determine the maximum EMI a borrower can pay against the Home Loan. All the current obligations such as EMI, credit card payments, etc. are taken into account along with the fixed income of the borrower to determine FOIR. The proportion of fixed obligations to income gives FOIR. The FOIR helps Bank of India to assess the eligible Home Loan amount. The minimum FOIR of 0.65 is must to be eligible for the Home Loan at Bank of India. Paying the short-term loans with high EMI can also help the borrower to increase the FOIR.

You can also Check the Features and Benefits of LRD Loan.

• The EMI on the Home Loan does not change unless the borrower request for the same. In such case, a nominal charge may be levied by the bank on a change of EMI request.
• Due to some conditions if the rate of interest on the Home Loan increases, the bank will also have to increase the rate of interest. The bank will keep EMI constant but increase the Home Loan tenure. But if the Home Loan tenure is beyond the permissible limit the bank may have to increase the Home Loan EMI as well.
• In the case of partly disbursed loans under tranched EMI scheme, the EMI will increase with each preceding loan disbursement.

Check Best Home Loan Interest Rates starting @7.15% from different banks and NBFCs.

• The borrower can opt for prepayment of the Home Loan under floating rate scheme.
• In case the borrower makes a prepayment on the outstanding principal amount. The Home Loan amount reduces and the borrower can choose to either keep the EMI constant or reduce the Home Loan tenure. This will help the borrower to pay the loan faster. The borrower can also opt to keep the loan tenure as it is and reduce the EMI amount.

You can also check Home Loan EMI through Loan Prepayment Calculator

Some of the benefits of calculating EMI on the Home Loan prior to approaching the bank are as follows:

• If the EMI amount is more than your monthly budget, you can choose the lower Home Loan amount for affordable monthly EMI.
• Knowing the EMI well in advance will help you to plan the finances accordingly and reduce the financial stress.
• On the basis of the EMI amount, you can decide on making the prepayment of the Home Loan.

You can also check Loan EMI through SBI Home Loan EMI Calculator.