Calculating your Home Loan EMI has never been as easy before. The simple tool requires the borrower to enter as few details as possible. The customer has to submit the following information to get the right Home Loan EMI:
The EMI Calculator displays the EMI within no time. Apart from the EMI, you get a complete repayment schedule, also known as the amortisation chart. This schedule shows the breakup of interest and instalment spread over the full tenure of the Home Loan. This feature of providing the amortisation chart separates it from other Home Loan EMI Calculators available on the internet.
Additional Info: Also check Rs. 1 Crore Home Loan EMI
EMI is a favoured repayment mode all over the world. It is beneficial to both the borrower as well as the lender. The bank benefits because it recovers the entire interest portion for the month. Besides, there is a gradual repayment of the principal component. The borrower benefits because it suits their budget. Secondly, the EMI determines their liability towards the loan repayment. Knowing the EMI in advance helps borrowers to plan their budgets accordingly.
The Home Loan EMI is a constant figure for a specific loan amount, rate of interest (ROI), and loan tenure. EMI comprises of two variable constituents, the interest repayment and principal repayment components. Both of these variable components depend on each other. In the initial stages of the repayment of the Home Loan, the interest component is high. Therefore, the balance available from the EMI amount after deducting the interest goes towards repayment of the principal loan. As you keep paying the EMIs on time, the interest component reduces gradually, thereby increasing the principal repayment. It evens out over the entire loan tenure.
The Home Loan EMI concept has its limitations:
Additional Info: Also check Rs. 1 Crore Home Loan EMI
Citibank uses the 3M-Treasury Bills rate declared by FBIL as the reference rate for determining the Home Loan interest rate. The reference rate currently applicable is 5.30%. Citibank housing loan interest rates are in the range of TBLR-3M + 3.05% to TBLR-3M + 3.90%. In absolute terms, the effective ROI as on date is 6.50%.
Thus the Citibank Home Loan EMI would be in the following range:
|Rate of interest = 6.50%|
|Loan Amount/Tenure||5 years||10 years||15 years||20 years|
|10 Lakhs||Rs. 19,566||Rs. 11,355||Rs. 8,711||Rs. 7,456|
|25 Lakhs||Rs. 48,915||Rs. 28,387||Rs. 21,778||Rs. 18,639|
|50 Lakhs||Rs. 97,831||Rs. 56,774||Rs. 43,555||Rs. 37,279|
Additional Info: Looking for 25 Lakh Home Loan? Check EMI & Apply.
Additional Info: Looking for 10 Lakh Home Loan? Check EMI & Apply.
Citibank uses the 3M-T-bill rate as the reference rate for calculating the Home Loan EMI. The T-bill rate is a fluctuating market rate that changes almost daily. Citibank adopts the T-bill rate as on the 12th of every month for reference. Any change in the 3M-T-bill rate affects the Home Loan interest rate. An upward swing in the rates can take the Home Loans up, thereby increasing the EMI. The vice versa is true, as well.
The Citibank Home Loan EMI Calculator estimates the EMI by assuming that the borrower will repay the EMI diligently. Any delay in the EMI can push up the interest component of the EMI. Therefore, the principal repayment portion will decrease, which, in turn, will affect the interest for the subsequent month. This effect carries on for the entire tenure of the Citibank Home Loan. Besides, Citibank charges penal interest on defaults and delayed instalments. The borrower should reimburse the interest immediately along with the repayment of the delayed payment. If he/she does not do so, the interest portion can spiral upwards, necessitating a change in the EMI.
Loans sanctioned for construction purposes come with a moratorium period that could extend up to 18 months. Usually, Citibank insists on the payment of the pre-EMI interest debited to the account. Under exceptional circumstances, the bank can capitalise such interest and add it to the principal loan amount. The Home Loan EMI will thus change because of a modification in the loan amount.
Additional Info: Also check HDFC Home Loan EMI Calculator
The Citibank Home Loan EMI Calculator is a handy tool for determining the Home Loan EMI. However, similar EMI Calculators are available on the internet as alternatives. One such tool is the EMI Calculator available at the MyMoneyMantra.com website. This EMI Calculator works on a similar principle. The borrower has to submit the minimum data for calculating the EMI. This calculator does not provide the amortisation chart, but it displays the breakup of the interest and principal repayment over the entire tenure.
Additional Info: You can also Check AnyRoR Gujarat Land Record
The Citibank Home Loan EMI Calculator displays the amortisation chart for the Home Loan for the entire tenure of the loan. It enables the borrower to understand the breakup of interest and principal amount repayment every month. The borrower also gets an idea about the total interest that they end up paying over the full tenure of the Home Loan.
Citibank Home Loan EMI Calculator allows the customers to calculate the EMI's of Home Loans with amounts higher than Rs. 2.10 Lakhs. Thus, the calculator should help calculate EMIs of all loans higher than Rs. 2.10 Lakhs. If your personal loan is less than this threshold amount, you cannot calculate the EMI using this calculator.
Citibank is the first commercial bank in India to link its Home Loan interest rates to an independent external benchmark rate. It started following this procedure from January 2018, much before the RBI instructed all banks to do so. Citibank adopts a reference to the Treasury bills rate for three months, as declared by FBIL. The housing loan interest rates are 3.05 to 3.90 points above the 3M-T-bill rate.
The rate of interest is a crucial component that decides the EMI for the Home Loan. Any change in the 3M-TBill rate brings about a corresponding variation in the Citibank Home Loan interest rate. Thus, it results in a modification of the Citibank Home Loan EMI.
Ideally, the EMI should change with every variation in the Home Loan interest rate. However, Citibank adopts a different methodology of treating the EMI. It prefers to maintain the EMI as constant while altering the Home Loan tenure. The advantage of doing so is that the borrower does not have to bear the loss immediately. It gets spread over the mandate of the EMI.
Usually, the intention behind making a prepayment of the Home Loan is to get rid of the liability as soon as possible. Therefore, borrowers do not seek any change in their EMI schedules. However, some borrowers can request the bank to consider the prepayment and reduce the EMI accordingly by maintaining the tenure of the loan as constant. The bank can agree to such requests on a case-to-case basis.
The primary advantage of the Home Loan EMI Calculator is that it enables you to estimate the EMI for your Home Loan. Thus, you become aware of your future liabilities. It can help you to earmark funds for the EMI and use the balance available for other activities. Therefore, you end up managing your finances better.
Citibank Home Loan EMI Calculator helps you to understand your Home Loan EMI. There is no reverse calculation that helps to determine your Home Loan amount. However, you get a fair idea about the Home Loan that you can get depending on your affordability. You have to use the trial and error method to determine your Home Loan affordability. If you have a clear idea about the amount of EMI that you can afford, it becomes easy to decide on your Home Loan amount.
Yes, the Citibank Home Loan Calculator works on the tried and tested formula for calculating EMI. This calculation requires the customer to provide details of the loan amount, the ROI, and loan tenure. If you provide accurate information, you get proper results, as well.
The EMI formula is as follows:
EMI = [PR(1+R)^N] / [(1+R)^N-1] where P, R, and N stand for the principal loan amount, ROI, and loan tenure, respectively.
MS Excel Calculation:
Use the function PMT(rate,nper,pv) to calculate the EMI Rate, NPER, and PV denote ROI, loan tenure, and principal amount, respectively.