Corporation Bank does not have a traditional EMI Calculator on its website. However, it offers the facility of an EMI chart where customers can enter the respective information in the MS Excel Sheet and get their EMI. This chart is better than the traditional EMI Calculators as it provides various other benefits.
Before we dwell into the benefits of the Corporation Bank Home Loan EMI Calculation chart, let us understand the EMI mechanism.
The Home Loan EMI calculation depends on the three variables:
Corporation Bank Home Loan EMI Calculation Chart is simple to use in many ways. It requires the customer to enter the following data:
On entering this information, you get the following results:
Additional Info: Also check Rs. 1 Crore Home Loan EMI
Additional Info: Also check 75 Lakh Home Loan EMI
The Corporation Bank Home Loan EMI Calculator is a comprehensive tool. However, there are alternate methods to calculate your EMI. MyMoneyMantra.com has one such EMI Calculator on its website. This calculator works on a similar principle. Besides calculating the EMI, the calculator provides details about the total interest and amount repayable by the borrower over the entire loan tenure.
Corporation Bank offers both fixed and floating rates of interest on Home Loans. The rate of interest is linked to the bank's MCLR. The effective rate of interest with effect from September 15, 2019, is in the range of 6.60% to 9%. In the case of a fixed rate of interest Home Loan, the rate of interest varies between 11.75% to 12.25%.
|Rate of Interest = 8.45%|
|Loan Amount/tenure||10 Lakhs||25 Lakhs||50 Lakhs|
|Rate of Interest = 8.75%|
|Loan Amount/tenure||10 Lakhs||25 Lakhs||50 Lakhs|
Corporation Bank offers Home Loans on a floating rate of interest. The rate of interest on Home Loans links to the MCLR of the bank. The bank announces its MCLR every month but resets the MCLR on the Home Loans at six-month intervals. Therefore, every six months, the rate of interest changes. Whenever there is a change in the effective interest rate, there should be a change in the EMI, as well.
Loans involving moratorium are different from the Home Loans where the EMI starts immediately after disbursement. The regular EMI in the moratorium-backed Home Loans does not commence until the final payment. It could extend up to 18 months. Corporation Bank capitalises the interest and adds it to the principal loan amount. Thus, the EMI increases considerably.
Corporation Bank is a significant lender in PMAY. The EMI calculation in the case of PMAY accounts is different from the regular Home Loan accounts. It is because of the element of upfront interest subsidy. Every PMAY account comes with an interest subsidy. The Government grant is credited upfront to the loan account, thereby reducing the principal loan amount. Thus, it affects the EMI.
Corporation Bank does not charge any penal interest on prepayment of Home Loans. Usually, borrowers do not request the bank to reduce their EMI after making the prepayment. However, they can do so to get the benefit of a reduced EMI for the residual portion of the contracted loan tenure.
Additional Info: ICICI Bank Home Loan Customer Care Number
The Corporation Bank Home Loan EMI Calculator is in the form of an MS Excel table. It gives a wealth of information ranging from your EMI to the total interest payable on the loan account. It also provides a month-wise breakup of the EMI repayment. This calculator proves useful when calculating Home Loan EMI in cases involving moratorium.
Any interest charged by the bank on the Home Loan before the commencement of the regular EMI is known as pre-EMI interest. Such a situation arises in the case of Home Loans sanctioned for construction purposes. The maximum moratorium on such loans is 18 months.
Many banks insist that the borrowers service the pre-EMI interest every month. In a way, it is beneficial for the borrower, as well. The amount payable each month as pre-EMI interest would be less than the regular EMI. Secondly, it also helps in reducing the regular EMI amount if you service the pre-EMI interest on time.
Corporation Bank offers facilities whereby they capitalise the pre-EMI interest and add it to the principal amount. Thus the borrower need not pay the pre-EMI interest every month during the moratorium period. Such an arrangement can suit the borrower, especially if they are on tight budgets.
The amortisation chart displays the interest and principal repayment breakup every month for the entire tenure of the loan. It helps the borrower to understand the concept of the Home Loan EMI.
Yes, one can use the Home Loan EMI Calculator to estimate the EMI of other loans. The EMI concept is the same for all kinds of loans.
Usually, there can be two types of loan repayment. One is the Equated Instalment mode, and the other is the Equated Monthly Instalment method. Many borrowers confuse between the two modes and treat it as the same. However, the concepts are different.
In the Equated Instalment mode, the bank divides the loan amount by the number of instalments and fixes the principal repayment component. This component remains unchanged throughout the repayment schedule. Apart from this amount, the borrower has to repay the interest charged to the account every month. Hence, it can result in a substantial liability, especially if it is a Home Loan.
The Equated Monthly Instalment is a constant figure for a specific loan amount, ROI, and loan tenure. The interest and principal component vary accordingly. In the initial stages of the housing loan, the interest portion will be substantially higher than the principal repayment portion.
Thus, EMI is the best repayment option for long-term loans, such as Home Loans. It distributes the liability evenly throughout the entire tenure of the loan.
Usually, the customer has to clear the defaulted instalment with penal interest and other charges. If you do so, there is no effect on the EMI. However, if you do not reimburse the penal interest and additional fees, it adds up to the principal amount. You end up paying interest on this portion, as well. The liability adds up, thereby necessitating a change in the EMI.
Typically, the EMI should change whenever there is a change in the interest rate. However, frequent changes in the EMI can affect the budget of the borrower. Hence, Corporation Bank prefers to maintain the EMI as constant and vary the loan tenure. If the rates go up, they extend the mandate. At the same time, a reduction in the rate of interest causes the tenure to reduce, as well.
The EMI Calculator does not have a direct mechanism to determine your affordability. You can try out the trial and error method to arrive at the maximum EMI that you can afford to pay. Accordingly, you can arrive at the maximum loan amount you can afford to avail.