|
0
|
50L
|
100L
|
150L
|
200L
%
|
5
|
7.5
|
10
|
12.5
|
15
|
17.5
|
20
|
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
Apply Online

About Bank of Maharashtra

Maharashtra has a reputation for being one of the most advanced states in the country in various fields. Banking is one sector in which Maharashtra has always been at the forefront. Bank of Maharashtra is a leading bank with a dominant presence in both rural and semi-urban areas in the state.

Established in 1935 at Pune, Bank of Maharashtra is a national-level bank with a distinctly regional flavour. This regional dominance was what tilted the scales in its favour during the recent merger exercise carried out by the Finance Minister. Bank of Maharashtra has branches outside Maharashtra, but it is restricted to the top towns and cities in India. The bank offers an exciting range of products and services. The Home Loan is one of the most attractive products provided by the bank. The competitive rates of interest and the high quality of customer service are two prominent reasons for its popularity.

Bank of Maharashtra Home Loan EMI Calculator

Bank of Maharashtra does not have a Home Loan EMI Calculator on its website. However, the bank provides an EMI chart that can help its borrowers to check out their EMI in advance. This chart is in the form of an MS Excel table that you can use to calculate the EMI.

Home Loan EMI Concept

EMI is the ideal mode of repayment for a Home Loan. It comprises of two variable aspects. One is the interest component, whereas the other variable component represents the principal amount repayment. This mode of payment is the best one for borrowers as it ensures uniform payment throughout the entire tenure of the loan. Other methods of payment, such as Equated Instalments (not to be confused with Equated Monthly Instalments), have a higher outgo in the initial months.

In the initial stage of repayment, the EMI has a high-interest repayment component. As you go deep into the repayment, you find that the principal repayment amount keeps on increasing gradually.

Bank of Maharashtra Home Loan Rate of Interest

Bank of Maharashtra has introduced the RLLR-linked rate of interest structure with effect from October 08, 2019. The RLLR for Bank of Maharashtra as on October 08, 2019 is 8.20%. The Home Loan interest rates are linked to the RLLR. Therefore, any change in the RLLR has a cascading effect on the Home Loan interest rates, as well.

The RLLR-linked interest rates are available to new borrowers alone. The existing borrowers come under the MCLR-linked rate structure. The rate of interest ranges from 1-year MCLR to 1-year MCLR + 0.20%. In absolute terms, it is 8.40% to 8.60%.

Bank of Maharashtra Home Loan EMI Calculation

Though the Bank of Maharashtra does not have an exclusive Home Loan EMI Calculator, the EMI chart on the website is good enough. It is easy to decipher the chart and arrive at the EMI.

The EMI chart is an interactive table that can deliver results for any interest rate range. It allows you to change the interest rate so that you get accurate readings.

The EMI chart works on the MS Excel formula for calculating the EMI. The formula is as follows:

EMI = PMT(rate, nper, pv)

  • PMT - MS Excel function for calculating EMI
  • Rate - the ROI applicable on the Home Loan (ROI/12)
  • NPER - stands for the number of months in the loan repayment schedule
  • PV = Principal loan amount

Using this chart is easy. The customers can change the principal amount and the rate of interest as per their requirement. This table explains it all:

Rate of Interest - 8.25%

Loan Amount

5 years

10 years

15 years

20 years

1 Lakh

2,040

1,227

970

852

The EMI calculation depends on the following three factors:

  • The Home Loan amount
  • The applicable rate of interest
  • The loan tenure

The factors that determine the calculation of the EMI

  • Loan amount
  • Rate of Interest
  • Loan repayment tenure

This calculation, based on the EMI chart will confirm the same:

Rate of Interest - 8.25%

Loan amount

5 years

10 years

15 years

20 years

1 Lakh

2,040

1,227

970

852

15 Lakhs

30,594

18,398

14,552

12,781

25 Lakhs

50,991

30,663

24,254

21,302

Rate of Interest - 8.50%

Loan amount

5 years

10 years

15 years

20 years

1 Lakh

2,052

1,240

985

868

15 Lakhs

30,775

18,598

14,771

13,017

25 Lakhs

51,291

30,996

24,618

21,696

  • As the loan amount increases from 1 Lakh to 25 Lakhs, the EMI increases proportionately
  • The EMI for the respective amounts @ 8.50% is more significant than that of those at 8.25%
  • As the tenure increases from 5 years to 20 years, the respective EMIs see a reduction

Alternatives to the Bank of Maharashtra Home Loan EMI Calculator

The Bank of Maharashtra EMI Calculator is unique because it is not like the conventional calculators you see elsewhere on the internet. It is in the form of a chart. Though different, this calculator is effective. However, borrowers who are not used to the functioning of the EMI chart can look up to alternative EMI Calculators.

One such EMI Calculator is available on the MyMoneyMantra website. Unlike the Bank of Maharashtra EMI chart, this calculator is full-fledged. Customers have to input the following details to get the EMI instantly:

  • The housing loan amount
  • The rate of interest
  • The repayment period in months

Using the calculator is easy:

  • Access the MyMoneyMantra website
  • Go to Financial Tools
  • Select EMI Calculator
  • Enter the details as listed above
  • Click on the ''Calculate'' option
  • Get your EMI instantly

Besides the EMI, this calculator provides the following additional data:

  • The total interest amounts payable by the borrower over the entire tenure
  • The total amount due from the borrower including the principal amount and the interest

Bank of Maharashtra Home Loan EMI Calculator - Benefits

  • The Bank of Maharashtra EMI chart helps you know your EMI obligation
  • It is an interactive chart that helps find your EMI over a range of loan amount, rate of interest (ROI), and loan tenure.
  • Knowing your EMI obligation helps the customer to arrive at a reasonable loan affordability level.
  • It helps to draw and maintain your budget

Factors That Affect the EMI of the Home Loan

Apart from the basic requirements like loan amount, rate of interest, and loan tenure, the following factors affect the EMI of your Home Loan:

  • Fluctuations in the rate of interest

    Bank of Maharashtra offers RLLR-linked ROI on Home Loans. The ROI depends on the RLLR that in turn, is linked to the repo rate. As the repo rate changes, the Home Loan interest rates change, as well. Those Home Loans linked to the MCLR also witness a change in the ROI whenever the MCLR is reset. As the ROI goes up, so does the EMI, and vice versa.

  • Moratorium on Home Loans

    Bank of Maharashtra has different Home Loan schemes on offer, one of which is for constructing homes or purchasing houses under construction. These loans do not have a one-time disbursement schedule. The disbursement is in tranches spread over an extended period. The regular EMI for such Home Loans does not commence immediately. They start one month after the payment of the final instalment of the loan. Until that time, the bank charges interest on the disbursed amount and capitalises it. This interest charges by the bank during the moratorium period is the pre-EMI interest. Due to capitalisation of the interest, there is a change in the Home Loan EMI.

  • Part Prepayment

    Part prepayment of the Home Loan reduces the Home Loan liability considerably. As the customer pays a lumpsum amount in advance, they can request the bank to recalculate the EMI and spread it evenly over the residual tenure. Under such circumstances, the banks can accede to the requests on a case-to-case basis.

  • PMAY Subsidy

    All PMAY beneficiaries are eligible for an upfront interest subsidy in their loan accounts. This grant is credited to the Home Loan accounts immediately on receiving the same from the Government department. As a result, the principal outstanding amount reduces considerably. Therefore, the EMI reduces accordingly. This example will help understand the situation better.

Category EWS LIG MIG-I MIG-II

Loan Amount

7 Lakhs

9 Lakhs

15 Lakhs

25 Lakhs

EMI before subsidy

5,964

7,669

12,781

21,302

Maximum eligible grant

2.67 Lakhs

2.67 Lakhs

2.35 Lakhs

2.30 Lakhs

Principal amount after the credit of support

4.33 Lakhs

6.33 Lakhs

12.65 Lakhs

22.70 Lakhs

EMI after subsidy

3,689

5,394

10,779

19,342

Assumptions

  • Rate of interest on Home Loan = 8.25%
  • Loan repayment tenure = 240 months

Bank of Maharashtra Home Loan EMI Calculator - FAQs

How does the Bank of Maharashtra Home Loan EMI Calculator perform in comparison to its peers?

Performance-wise, there is nothing wrong with the Bank of Maharashtra Home Loan EMI Chart. Using this chart, it is perfectly capable of calculating the EMI for any loan amount, ROI, or loan tenure up to 240 months. The figures are accurate to the fourth decimal point. Hence, this chart is a perfect Home Loan EMI Calculator in many ways.

Is it a user-friendly Home Loan EMI Calculator?

Nowadays, people are conversant with the use of MS Excel functions. Hence, using this chart to get the EMI should not be an issue. However, if you compare the table with the calculator on the MyMoneyMantra website, you will find that the latter is more user-friendly than the Bank of Maharashtra Home Loan EMI chart.

Can you use the Bank of Maharashtra Home Loan EMI chart to determine the EMI for other loans?

Yes, you can use this chart to determine the EMI of other loans like vehicle loans, Loan Against Property, and so on. The principle behind the calculation of EMI is the same in all cases.

Will my EMI change with a change in the ROI?

Bank of Maharashtra offers floating rates of interest on Home Loans. Hence, the EMI should change whenever there is a change in the ROI structure. Calculating the EMI should not be an issue, as you have to enter the contracted ROI to get your new EMI.

How does Bank of Maharashtra treat the EMI in the event of a change in the ROI?

The ROI and EMI are in direct proportion. Thus, when the ROI goes up, so does the EMI and vice versa. However, the bank does not change the EMI every time there is a change in the ROI. The bank prefers to modify the loan tenure. Hence, the borrower does not feel the pinch of the increase in the EMI liability.

Can the borrower request the bank to alter the EMI instead of the loan tenure?

Yes, the borrower has the option to request the bank to alter the EMI instead of the loan tenure whenever there is a revision in the interest rates. In the long run, it is beneficial to the borrower to do so.

How does the Equated Instalment mode differ from the Equated Monthly Instalment mode of repayment?

In the Equated Instalment mode, the monthly instalment is not the same throughout the loan tenure. The principal loan amount is divided into equal instalments. The borrower has to pay the interest charged to the account every month, as well.

In the Equated monthly instalment, the monthly instalment is the same throughout the loan for a particular rate of interest. The principal loan repayment and interest amount vary accordingly.

Which is the better mode of repayment, equated instalment or EMI?

If you look at the economics of the transaction, the equated instalment is better for the customer, as they end up paying less over the whole tenure. However, from the convenience viewpoint, the EMI is a better option.

Under what circumstances can the bank agree to reduce the EMI for the borrower?

The borrower can apply for a change in the loan repayment tenure if they feel uncomfortable with the Home Loan EMI repayment. Such an arrangement is known as restructuring or rescheduling the EMI. The borrower can also make a part prepayment and seek a reduction in the EMI for the residual tenure. Such instances can occur when the borrower retires from their job and ends up with a smaller income like a pension. They can choose to prepay a part of the Home Loan and go for a reduction in the EMI.