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 online 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 720 per lakh at the rate of interest of 7.80%. 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 7.80% interest rate.
|Loan Amount||Loan Tenure|
|15 years||20 years||30 years|
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 7.80%
|5 years||10 years||15 years||30 years|
|EMI when loan amount is 1 lakh @ 7.80% interest rate||Rs. 2,018||Rs. 1,203||Rs. 944||Rs. 720|
|Total amount payable to bank (principal + interest)||Rs. 1,21,085||Rs. 1,44,328||Rs. 1,69,946||Rs. 2,59,153|
|Interest payable over the loan tenure||Rs. 21,085||Rs. 44,328||Rs. 69,946||Rs. 1,59,153|
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 720, but the total interest outgo will be Rs. 1,59,153. However, if you apply for the same amount for a tenure of 5 years, the EMI will be Rs. 2,018 but the overall interest will be Rs. 21,085. 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.
Additional Info: Also check Rs. 1 Crore Home Loan EMI
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 7.80% at present
n = tenure in months, which can be maximum 360 months for Bank of India Home Loans
Know in detail: Simple Interest Formula Calculation.
Additional Info: Also check 75 Lakh Home Loan EMI
Tip: Best Home Loan for Salaried Person before applying for a loan
Additional Info: Check 30 Lakh Home Loan EMI Apply Online.
Additional Info: Also check Pan Number for Banks
Some of the benefits of calculating EMI on the Home Loan prior to approaching the bank are as follows:
Additional Info: You can also avail Canfin Home Loan
Yes, you can apply for the joint Home Loan at Bank of India. Applying for the joint Home Loan with your spouse or any other eligible co-applicant will increase your repayment capacity and increase your Home Loan eligible too.
Yes. The bank offers Pradhan Mantri Awas Yojana (PMAY) based Home Loan.
The current 1 year Marginal Cost of Funds based Lending Rate (MCLR) of the Bank of India is 8.70% (as updated on 10.05.2019).
Yes. The Bank of India offers Home Loans to Non-Resident Indians (NRIs) as well as Persons of Indian Origin (PIOs).
Bank of India Home Loan interest is calculated on daily reducing balance basis, providing an added benefit to the customer as it leads to lower interest amount.
High Net worth Individuals (HNIs), Firms or Corporates for residential accommodation of their directors/partners are eligible for Star Diamond Home Loan provided that the applicants are earning minimum average gross income of 1 Crore or above during the last three years as per their audited balance sheet or ITR.
Star Diamond Home Loan is available in the following metros and major cities only:
Salaried applicants can avail a minimum of 5 Lakhs and other applicants can get a minimum of 10 Lakhs as loan amount under BOI Star Smart Home Loan.