Central Bank of India Home Loan EMI Calculator 

Central Bank of India, India's first genuinely Swadeshi bank, was set up in 1911 by a visionary by the name of Sir Sorabji Pochkhanawala. It has retained its Indianness right since the time of its establishment. The bank has a fantastic reputation for being a trustworthy institution. It was one of the first banks in India to be nationalised on July 19, 1969. Today, the bank has more than 4000 branches situated in every nook and corner of the country.

The bank offers a beautiful bouquet of loan and deposit services to its clientele. The Central Bank Home Loan is one of the most popular loan products for various reasons. One of them is the desirable rates of interest that are amongst the lowest in the country. The bank has multiple Home Loan products to suit the needs of every section of society. Among the services that the bank offers, the Home Loan EMI Calculator is an attraction. This calculator is a unique one because it serves as a Home Loan eligibility calculator, as well.

Central Bank of India offers a unique Home Loan Calculator that is different from what the other banks have on their website. This calculator is a two way calculator that can help customers calculate their Home Loan EMI and their eligibility, as well.

Using the calculator is easy. The customer has to visit the official website of the Central Bank of India and select the loan calculator module.

• Select the loan bracket - Either up to 1 Crore or between 1 Crore and 10 Crores
• Choose the loan type - There are four options including the Home Loan
• If you are looking for your EMI calculation, you have to enter the loan amount, the tenure, and the interest rate.
• Click on the 'Monthly Amount' option to get the EMI in an instant
• If you are looking for the 'Loan amount,' you have to skip this step and provide details of the loan tenure, interest rate, and the EMI you can afford to pay.
• Click on the 'Loan Amount' option to arrive at the maximum affordable loan amount

This example will clear the matter:

Calculation of EMI

• Loan Bracket - Up to Rs. 1 Crore
• Loan Type - Home Loan
• Loan Amount - Rs. 25 Lakhs
• of instalments - 120
• Rate of Interest - 8.55%
• Monthly Payment (EMI) - Hit the Monthly Amount to get Rs. 31,063 as your EMI

Loan Affordability

• Loan Bracket - Up to Rs. 1 Crore
• Loan Type - Home Loan
• of Instalments - 120
• Rate of Interest - 8.55%
• Monthly Payment - Rs. 50,000
• Loan Amount - Click on the 'Loan Amount' to get the affordable loan amount as Rs. 18,10,818.

Additional Info: Also Check LRD Loan

• Know your probable EMI in advance before applying for the Home Loan
• It helps to plan your budgets better if you are aware of your impending obligations
• This calculator helps to calculate your loan affordability
• Enter the maximum amount of EMI that you can afford to pay and get the loan amount that would fit your budget.

Additional Info: Check Banglarbhumi West Bengal Land Record in detail

Considering the drawbacks present in the Central Bank of India EMI Calculator, one should look at alternate means of determining their Home Loan EMI.

MyMoneyMantra

MyMoneyMantra presents one of the best alternatives for calculating the Home Loan EMI.

• Access the MyMoneyMantra website
• Choose 'Financial Tools'
• Select EMI Calculator
• Enter the Home Loan amount
• Enter the rate of interest applicable to the Home Loan
• Provide information about the loan repayment tenure
• Click on the 'Calculate' option to get your Home Loan EMI
• Apart from the EMI amount, you also get the interest breakup for the whole Home Loan tenure. You can calculate the total amount you would have to pay on loan.

Manual Calculations

Calculating the Home Loan EMI using the traditional methods is a challenge today. It explains the popularity of the Home Loan EMI Calculators that are available all over the internet. However, we shall touch upon the formula for calculating the Home Loan EMI manually.

EMI = [PR(1+R)^N] / [(1+R)^N-1]

Where P refers to the loan amount, R represents the rate of interest and N denotes the number of monthly instalments.

Using MS Excel Formulas

MS Excel presents a smooth EMI calculation formula that many people are comfortable with.

EMI = PMT(rate, nper, pv)

• PMT - MS Excel function to denote EMI
• Rate - Rate of interest monthly (6.85% translates into 6.85 X 1/1200)
• NPER - No of monthly instalments
• PV - Loan amount, also known as Present Value

Know in detail: Simple Interest Formula Calculation.

EMI Calculators require the furnishing of the following three variables:

• The Home Loan amount - 10 Lakhs - 25 Lakhs
• The rate of interest - 8.55% - 9.35%
• The loan tenure - 5 years - 25 Years

Points to note

• As the loan amount increases from Rs. 10 Lakhs to Rs. 25 Lakhs, the EMI increases from Rs. 20,929 to Rs. 52,322 @ 9.35% for 60 months.
• The EMI for 10 Lakhs @ 8.55% for 240 months is Rs. 9,877. It increases to Rs. 10,352 when the rate of interest moves up to 9.35%.
• The EMI for 25 Lakhs @ 8.55% for 60 months is Rs. 51,352. It reduces to Rs. 1,775 as the tenure goes up to 300 months.

Additional Info: Also check DDA Housing Scheme

Rate of interest: Central Bank of India has started providing Home Loans linked to the repo rates. As and when the repo rates change, the bank will now have to revise the Central Bank of India Home Loan interest rates accordingly. The rate of interest is a crucial variable in the EMI calculation. Hence, any change in the rate of interest will have a corresponding change in the EMI. If the rates go up, so too will the EMI, and vice versa.

PMAY subsidy: Central Bank of India has a nationwide presence. Hence, it is one of the foremost lenders under PMAY. All PMAY beneficiaries are eligible for support from the Government in the form of an upfront interest subsidy. This grant is credited to the loan account upfront. As it results in the reduction of the Home Loan principal, another critical aspect of the EMI, the EMI will reduce considerably.

Part prepayment: Central Bank of India permits part prepayment of Home Loans. Under such circumstances, the principal portion of the Home Loan reduces considerably. Therefore, the customer can request for reducing the EMI for the residual tenure. The bank caters to such applications on merits and reduces the EMI wherever necessary.

Default in payment: Any default in payment attracts penal interest. This penal interest has to be serviced by the borrower separately. If he/she does not do so but continue with the regular EMI, the interest component goes up considerably, necessitating a change in the EMI.

Moratorium: Central Bank of India approves moratorium up to 18 months on Home Loans availed for construction purposes. The bank disburses the loan amount in several tranches. Borrowers have the option of allowing the interest portion to accumulate and service it along with the regular EMI. Under such circumstances, the EMI will increase because of the accumulation of pre-EMI interest into the loan account. Alternatively, the borrower can service the pre-EMI interest monthly to reduce the EMI burden at a later stage.

Additional Info: You can also Check AnyRoR Gujarat Land Record

Central Bank of India calculates Home Loan interest on the daily reducing balance method. This method is the most beneficial one to borrowers, as it offers the benefit of interest the moment you deposit the loan instalment into the account. The ideal mode of repayment to get the maximum out of such an interest calculation method is the EMI mode.

You can also Apply for 20 Lakh Home Loan