|
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
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About Punjab National Bank

Punjab National Bank is a reputed nationalised bank in India having the largest number of bank branches other than the State Bank of India. Post the recent merger with United Bank of India and Oriental Bank of Commerce; it will retain its second position amongst banks in India. Punjab National Bank offers various kinds of loans, including Home Loans and loans against property. Being a nationalised bank, Punjab National Bank offers one of the best rates of interest on Home Loans. The bank caters to a vast clientele.

Punjab National Bank Home Loan Calculator

Punjab National Bank has two types of Home Loan calculators, the Home Loan eligibility calculator, and the Home Loan EMI Calculator. The former enables customers to determine their eligibility for a Home Loan. Furnishing your income details and obligations helps you to know your Home Loan eligibility amount. The Home Loan EMI Calculator enables customers to calculate their monthly obligations towards repaying the Home Loan.

Punjab National Bank Home Loan EMI Concept

Punjab National Bank calculates Home Loan interest on a daily reducing balance method. Therefore, the most popular mode of repayment is EMI. Usually, salaried employees and self-employed individuals earn regular monthly income. Thus, EMI is the most suitable mode of repayment for them, as well. Specific sections of society like agriculturists do not have a monthly salary. Their income generation coincides with the harvesting period. Therefore, this section of customers likes to repay their loans, either quarterly or half-yearly.

The EMI concept is not only simple but also the most beneficial for customers. It also becomes easy for the bank to determine loan eligibility. The EMI concept envisages the payment of interest as well as a portion of the principal outstanding amount. Thus, the liability reduces over the entire tenure of the Home Loan. Calculating the EMI for a Home Loan over a 20 or 30-year period can be a challenge if done manually. Therefore, the Punjab National Bank EMI Calculator comes in handy for such complicated calculations.

How to Use the Punjab National Bank Home Loan EMI Calculator

Using the Punjab National Bank Home Loan EMI Calculator is elementary. Customers should provide with the following information:

  • The loan amount sanctioned by the bank or the loan amount that you are looking for
  • The rate of interest
  • The loan repayment period in months

Entering this data on the Punjab National Bank Home Loan Calculator webpage can get you your Home Loan EMI instantly.

Factors That Determine Your Home Loan EMI

Your Punjab National Bank Home Loan EMI depends on the following aspects:

  • The Home Loan amount
  • The rate of interest on the Home Loan
  • The repayment tenure

Points to Consider

  • The Home Loan amount is directly proportional to the EMI. As your loan amount increases, your EMI will also increase proportionately.
  • The rate of interest is a crucial factor that decides your Home Loan EMI. Nowadays, all customers prefer to opt for floating rates of interest. As the interest rate goes up, so does the EMI. Similarly, a reduction in the interest rate causes a downward slide in the Home Loan EMI, as well.
  • The loan repayment tenure is a vital aspect that not only determines the EMI, but also helps you increase your eligibility. The loan repayment tenure is inversely proportional to the EMI. Thus, an extended tenure has a lower EMI as compared to a shorter one.

Punjab National Bank Home Loan EMI Table

The EMI Table given below can help you understand the concept better:

  • Assume the loan amount to be 1 Lakh
  • The rates of interest are 8.50% and 9% respectively
  • The loan tenure ranges from 5 years to 25 years
Interest 5 years 10 years 15 years 20 years 25 years

8.50%

2,052

1,240

985

868

805

9%

2,076

1,267

1,014

900

839

Here is a table that considers a range of amounts for different tenures. Consider the rate of interest to be 8.50%.

Loan Amount 5 years 10 years 15 years 20 years 25 years

10 Lakhs

20,517

12,399

9,847

8,678

8,052

20 Lakhs

41,033

24,797

19,695

17,356

16,105

25 Lakhs

51,291

30,996

24,618

21,696

20,131

30 Lakhs

61,550

37,196

29,542

26,035

24,157

40 Lakhs

82,066

49,594

39,390

34,713

32,209

50 Lakhs

1,02,583

61,993

49,237

43,391

40,261

  • As the tenure increases, the EMI reduces considerably. Hence, it is beneficial for a young borrower to extend the loan repayment tenure to the maximum. It helps the borrower to end up with higher eligibility. A borrower capable of paying 33,000 as EMI can opt for tenure of 25 years and avail a Home Loan of 40 Lakhs.
  • The Home Loan EMI increases whenever the rates of interest rise. Thus, the EMI for 1 Lakh for 5 years @ 9% is higher than that for 8.50%.
  • Similarly, the EMI increases proportionately to the loan amount. Thus, the EMI for a loan of 40 Lakhs is approximately twice that of a loan for 20 Lakhs.

Punjab National Bank - Other Calculators

Besides the Home Loan EMI Calculator, Punjab National Bank offers the following calculators:

  • Home Loan and Car Loan Eligibility Calculators: Customers can submit their details such as income and other obligations to determine the maximum Home Loan and car loan eligibility.
  • Fixed Deposit Calculator: This calculator helps customers to know the maturity value of their fixed deposits with the bank.
  • Recurring Deposit Calculator: The Recurring Deposit Calculator enables the customers to arrive at the maturity value of their recurring deposits with the bank.

Alternate Methods to Calculate the Home Loan EMI

Using the Punjab National Bank EMI Calculator enables you to arrive at your Home Loan EMI. There are alternatives, as well. MyMoneyMantra has a similar Home Loan EMI Calculator on its website. This calculator is also easy to use.

  • Access the official site of MyMoneyMantra.com
  • Go to Financial Tools
  • Select the EMI Calculator option
  • Enter the loan amount you are looking for
  • Submit the rate of interest
  • Provide details of the loan repayment period
  • Hit the Calculate option to get your EMI

This EMI Calculator provides additional information in the form of total interest payable on the Home Loan.

Manual Calculation of Home Loan EMI

It is possible to calculate the Home Loan EMI manually using the following formula:

EMI = [PXRX(1+R)^N] divided by [(1+R)^N - 1]

  • P represents the principal loan amount approved by the bank
  • R denotes the rate of interest on the Home Loan (if the rate of interest is 9%, then R = 9/1200)
  • N is the number of monthly instalments

One can also use MS Excel to calculate the Home Loan EMI. The formula for determining the EMI is PMT (rate,nper,pv)

  • PMT - The EMI calculation function is known as PMT in MS Excel
  • Rate - monthly rate of interest (if Rate of interest is 9% per annum, then the rate = 9/1200)
  • NPER - Repayment tenure in months
  • PV - The loan amount
The result will be shown as a negative figure in red. It is an indication that it is a cash outflow for the borrower.

Punjab National Bank Home Loan EMI Calculator - Advantages

Your loan sanction letter contains the details of EMI payable, rate of interest, and loan tenure. However, it is beneficial to know the EMI before you apply for your Home Loan. The Punjab National Bank EMI Calculator enables you to do so.

  • As you are aware of the monthly outgo, it becomes easy for you to manage your budget
  • When you know the EMI, you can calculate your loan eligibility. Using this calculator, you can adjust your finances better to get higher eligibility.
  • It is possible to decide on the loan repayment tenure. A younger borrower can settle for an extended tenure, thereby enhancing his/her overall eligibility.
  • The MyMoneyMantra Home Loan EMI Calculator helps you to know your overall interest liability for the entire tenure of the loan.

Punjab National Bank Home Loan EMI - Effect of Change in ROI

Punjab National Bank offers Home Loans at floating rates of interest. The rates are linked to either the bank's RLLR or MCLR. These rates are market-linked. Hence, any fluctuation in the market rates affects the rate of interest on Home Loans.

  • Increase in the rate of interest: The borrower has the option of either increasing the EMI or keeping it constant. However, banks prefer to keep the EMI constant. Under such circumstances, the loan repayment tenure will extend beyond the contracted period.
  • A decrease in the rate of interest: The borrower prefers to keep the EMI constant, while the tenure reduces accordingly.

Effect of Prepayment of Home Loan on the Home Loan EMI

Punjab National Bank does not charge any penalty on prepayment of Home Loan instalments. Many borrowers prefer to prepay their Home Loan if they have surplus funds on their hands. Usually, the banks do not change the EMI but let it continue. However, the borrower can request the bank to reduce the EMI. Under such circumstances, the Home Loan EMI can change.

The Pre-EMI Concept

The Pre-EMI concept comes into play in the case of partially disbursed Home Loans. Nationalised banks usually offer a moratorium of 18 to 24 months on Home Loans sanctioned for construction purposes. Typically, banks insist on the payment of the interest component on these partially disbursed Home Loans. This servicing of interest is the pre-EMI amount. The regular EMI starts from the month following the date of the final disbursement.

Taxation Benefits on Repayment of Home Loan EMI

The Income Tax Act offers concessions in income tax on Home Loan interest and principal repayments. Sec 24 of the Act provides concessions up to 2 Lakhs per borrower on repayment of Home Loan interest. Sec 80C provides tax rebates up to 1.50 Lakhs on the repayment of the principal component of the Home Loan every year.

Punjab National Bank Home Loan EMI Calculator - FAQs

Is it possible to calculate the equated quarterly and equated half-yearly instalments using the Punjab National Bank EMI Calculator?

No, it is not possible to calculate the equated quarterly and half-yearly instalments using the EMI Calculator. However, you can use MS Excel tables and calculate these figures.

What are the disadvantages of the Punjab National Bank Home Loan EMI Calculator?

There are a couple of disadvantages of the Punjab National Bank Home Loan EMI Calculator.

  • It does not calculate the equated quarterly or half-yearly instalments. Agriculturists usually adopt this method of payment.
  • It does not calculate the EMI in case the bank does not insist on the payment of the pre-EMI interest.
  • The Punjab National Bank EMI Calculator does not provide the amortisation schedule of the Home Loan.

What is the amortisation schedule for a Home Loan?

The amortisation schedule provides details of the EMI payable throughout the entire tenure of the loan. You get the breakup of the interest and principal repayment portion every month. Thus, you become aware of the total outgo of funds from your side.

Will the amortisation schedule change with a change in the rate of interest?

A variation in the rate of interest affects the amortisation schedule. The amortisation schedule depends on the following factors:

  • Loan amount
  • Rate of interest
  • Repayment tenure

A variance in any of the above factors can alter the amortisation schedule.

What is the EMI concept?

The EMI concept is the ideal mode of repayment of Home Loans. EMI comprises of two variables, interest and principal repayment. Any payment first goes towards the repayment of interest. The balance amount, if any, is appropriated towards the repayment of the principal amount.

How can you determine your Home Loan eligibility using the Home Loan EMI Calculator?

One can go backwards and determine the Home Loan eligibility. Once you are aware of the amount you can afford to pay as EMI, it is easy to calculate the Home Loan eligibility. Otherwise, the Punjab National Bank website offers the facility to calculate your Home Loan eligibility online.

Is it possible to calculate the prepayment benefits and foreclosure amounts using the Home Loan EMI Calculator?

No, it is not possible to calculate the foreclosure amount and prepayment benefits using the Home Loan EMI Calculator. These calculators require unique tools that are not available on the Punjab National Bank official webpage.

Does the Punjab National Bank Home Loan EMI Calculator provide accurate results?

Yes, the Punjab National Bank Home Loan EMI Calculator is an accurate tool. However, a lot depends on the data you provide. The calculator asks for the repayment period in months. Giving accurate data will ensure that you get perfect results.

How do you calculate the PMAY loan EMI using the Punjab National Bank Home Loan EMI Calculator?

You should deduct the subsidy amount from the principal loan amount before entering the data in the EMI Calculator. It helps you to calculate the PMAY Home Loan EMI.

Can you use the Punjab National Bank Home Loan calculator to determine your personal loan EMI?

Yes, you can calculate the EMI of any loan using this Home Loan EMI Calculator.