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Calculate Muthoot Finance Home Loan EMI

50000020000000
120
130
Total Payments-

₹5,000,000

Total Interest-
₹0
Principal Amount-
₹5,000,000
Total EMI

₹0

View Details
  • Loan Amount
  • Interest Rate
  • Your EMI
  • Tenure
  • ₹5,000,000
  • 12.5%
  • ₹0
  • 30
Updated:

About Muthoot Finance Home Loan

The characteristics of Muthoot Finance Home Loan are as follows:

  • Caters to all kinds of borrowers, including those who do not have any formal sources of income generation.
  • The maximum amount of Home Loan is Rs. 50 Lakhs
  • Rate of interest starts from 12.50%
  • Repayment of the Home Loan is through EMI
  • The maximum repayment tenure is 25 years

Additional Info: Also check SBI Home Loan EMI Calculator

Muthoot Finance Home Loan Interest Calculation Methods

Muthoot Finance offers the following types of Home Loans:

  • Floating rate Home Loans
  • Fixed-rate Home Loans
  • Combination rate Home Loans

The rate of interest on the Home Loan is linked to the Retail Prime Lending Rate of the company. The company charges interest on monthly reducing balances. The ideal mode of repayment of Muthoot Finance Home Loan is EMI. The company website has an EMI Calculator to facilitate customers.

Additional Info: Looking for 25 Lakh Home Loan? Check EMI & Apply.

Muthoot Finance Home Loan EMI Calculator Details

Muthoot Home Finance offers the facility of a Home Loan EMI Calculator. Using this calculator, customers can estimate their EMI easily. Using the calculator is simple. The customers need to enter the following necessary information in connection with their Home Loans.

  • The loan repayment tenure in years
  • The amount of Home Loan you need
  • The rate of interest per annum

On entering this information, you get the following details:

  • The EMI amount payable by you for the entire tenure of the loan
  • The amortisation schedule showing the breakup of principal and interest repayment
  • The table also provides details of the proportion of loan you repay every month

Additional Info: Looking for 10 Lakh Home Loan? Check EMI & Apply.

Muthoot Finance Home Loan EMI Calculator Benefits

  • Get the Home Loan EMI instantly by entering specific information about your loan
  • Know your Home Loan repayment obligations before you apply for the loan
  • Doing a reverse calculation helps you determine the maximum Home Loan that you can afford
  • It becomes easy to plan your budget if you know your Home Loan and other EMIs
  • This EMI Calculator can help calculate the EMI of any loan
  • Get the facility of the Home Loan amortisation schedule. You become aware of the concept of the Home Loan EMI.

Additional Info: Also check HDFC Home Loan EMI Calculator

Factors Affecting Muthoot Finance Home Loan EMI

Moratorium Period

Home Loans sanctioned for construction purposes come with a moratorium period that could extend up to 18 months. The disbursement happens in tranches depending on the requirements. The regular EMI repayment for such Home Loans commences one month after the date of the final payment (or the completion of the moratorium whichever is earlier).

Under such circumstances, the company charges interest on the amounts that are partially disbursed. This interest amount charged to the loan account before the start of the EMI is pre-EMI interest. Muthoot Home Finance insists that the borrower repay the pre-EMI interest as and when it is debited. However, the company can consider a request for capitalising the interest. This accumulation of interest can cause a change in the EMI.

Rate of Interest fluctuation

Muthoot Home Finance Home Loan interest rates depend on the Retail Prime Lending Rate of the company. This rate, in turn, links to market-related rates. Therefore, any change in the market rates can bring about a change in the RPLR, and thereby the applicable Home Loan interest rates. The Home Loan EMI can vary with every change in the interest rate. If the rates go up, the EMI can increase and vice versa.

PMAY Subsidy

Muthoot Home Finance is an active lender in PMAY. The EMI estimation in PMAY is different from that of the regular Home Loan accounts. All PMAY beneficiaries are eligible for Governmental support in the form of an upfront interest subsidy. The subsidy amount depends on the category of the borrower. The company applies to National Housing Bank for disbursement of PMAY subsidy. On receiving the same, it is credited to the Home Loan account. Therefore, the principal liability reduces drastically. It affects the EMI calculation.

Prepayment of Home Loan

Borrowers have the facility of prepaying their Home Loans. Prepaying the Home Loan results in a reduction of the principal portion of the loan. Usually, borrowers do not seek any modification in the EMI. However, the borrower is entitled to request the company to restructure the EMI after the prepayment. Under such circumstances, the EMI can change.

Muthoot Home Finance - EMI repayment - tax benefits

Home Loan repayments are eligible for income tax benefits. These concessions are available for both interest and principal amount repayments. Sec 80C of the IT Act offers income tax concessions up to Rs. 1.50 Lakhs on Home Loan principal amount repayments. Sec 24 of the Act deals with interest repayments. The maximum tax concession available under Sec 24 is Rs. 2 Lakhs per individual per annum.

Additional Info: Also Apply Home Renovation Loan

Muthoot Finance Home Loan EMI Calculator Concept

The Home Loan is a long-term liability. Secondly, the amounts involved in a Home Loan are substantial. Hence, the ideal mode of repayment is EMI (equated monthly instalments) instead of the traditional EI (equated instalments). Many customers confuse between these two repayment modes and treat it the same. However, they are different from each other.

Equated Monthly Instalment Concept

EMI is the most popular repayment method. It comprises of two components, the principal repayment component and the interest constituent. Both these portions are variable. In the initial stages, the principal repayment is less. A glance at the Home Loan amortisation schedule shows that it can be as low as 5% to 10% of the EMI amount. As you continuously pay the EMIs on time, the principal repayment portion increases. However, the EMI remains constant throughout for a specific loan amount, ROI, and rate of interest.

Equated Instalments Concept

The equated instalment concept is different from EMI in the sense that the monthly instalment varies depending on the interest amount. The loan amount is divided by the repayment tenure (in months) to arrive at a constant figure constituting the principal repayment. Besides this amount, the borrower has to repay the interest component separately. Hence, it results in a higher liability in the initial stages.

Muthoot Home Finance Limited follows the EMI mode of repayment. The Home Loan EMI Calculator on the official website proves helpful to customers to determine their monthly repayment obligations.

Additional Info: Also check Pan Number for Banks

Factors That Determine the Muthoot Finance Home Loan EMI Calculation

  • The Home Loan amount is a crucial factor that decides the EMI. The EMI moves in the same direction as the Home Loan.
  • The EMI calculation depends on the rate of interest applicable to the Home Loan. The EMI and the ROI are in direct proportion with each other.
  • The loan repayment tenure affects the EMI calculation. The longer the loan tenure, the smaller is the EMI.
Rate of Interest = 12.50%
Loan Amount/tenure10 years15 years20 years25 years
 10 Lakhs  Rs. 14,638  Rs. 12,325  Rs. 11,361  Rs. 10,904
 20 Lakhs  Rs. 29,275  Rs. 24,650  Rs. 22,723  Rs. 21,807
 40 Lakhs  Rs. 58,550  Rs. 49,301  Rs. 45,446  Rs. 43,614
Rate of Interest = 13%
Loan Amount/tenure10 years15 years20 years25 years
 10 Lakhs Rs. 14,931  Rs. 12,652  Rs. 11,716  Rs. 11,278
 20 Lakhs Rs. 29,862  Rs. 25,305  Rs. 23,432  Rs. 22,557
 40 Lakhs Rs. 59,724  Rs. 50,610  Rs. 46,863  Rs. 45,113

Inference:

  • As the rate of interest increases from 12.50% to 13%, the EMI increases at every stage
  • The EMI goes up with a corresponding increase in the Home Loan amount from Rs. 10 Lakhs onward to Rs. 40 Lakhs.
  • As the tenure extends from 10 years to 25 years, the EMI reduces drastically

Additional Info: Also check ICICI Home Loan EMI Calculator

Amortization Table

YearOpening BalanceAmount paid by customer (EMI*12)Interest paid during the yearPrincipal paid during the yearClosing Balance

FAQs

✅ Does the Muthoot Home Finance Home Loan EMI Calculator deliver accurate results?

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Yes, the Muthoot Finance Home Loan EMI Calculator delivers accurate results. However, it depends on the information you enter.

✅ What is the significant drawback of the Muthoot Finance Home Loan EMI Calculator?

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The Muthoot Finance Home Loan EMI Calculator is not useful when it comes to calculating EMI in the case of accounts with a moratorium. It does not have the facility to calculate the interest for the moratorium period and capitalise it.

✅ Are there any alternatives to the Muthoot Home Finance Home Loan EMI Calculator?

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Customers can use the EMI Calculator available on the MyMoneyMantra.com website. Using this calculator is easy.

  • Access the MyMoneyMantra.com website
  • Select Financial Tools and proceed to go to EMI Calculator
  • Enter the necessary details asked for by the system
  • Click on the 'Calculate' option to get the EMI

Besides the EMI, the system provides information on the total amount of interest payable on the loan.

✅ What is the formula for calculating the Home Loan EMI?

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

  • EMI - Equated Monthly Instalment
  • P - Principal loan amount
  • R - Rate of interest per month (if it is 8% pa, then R = 8/1200)
  • N - number of monthly instalments

One can calculate the Home Loan EMI using MS Excel formula, as well. The formula is PMT(rate,nper,pv).

  • PMT - Formula function for EMI
  • Rate - Rate of interest per month
  • NPER - number of monthly instalments
  • PV - Principal loan amount, also known as the present value

As the EMI is an outgo from the customer's viewpoint, the result will be shown as negative (in red).

✅ How does Muthoot Home Finance treat the EMI in the case of interest rate fluctuations?

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Typically, the EMI should increase every time there is an upward revision in the interest rates. An enhanced EMI can affect the financial budget of the borrower. Hence, Muthoot Home Finance tries to maintain the EMI as constant by increasing the loan tenure accordingly. However, customers can opt to enhance their EMI by authorising the company to do so.

✅ What is the benefit of the amortisation schedule?

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The amortisation schedule provides information about the breakup of the interest and principal portion of the Home Loan EMI. It gives a deep insight into the EMI concept. The borrower gets an idea about the total amount of interest he/she would end up paying on the Home Loan.

✅ What is the pre-EMI interest concept?

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Any interest debited to the Home Loan account before the commencement of the regular EMI is pre-EMI interest. Usually, you come across the pre-EMI interest concept in Home Loans with a moratorium period.

✅ Is it beneficial for the borrower to pay the pre-EMI interest every month?

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Yes, it is beneficial to the borrower to service the pre-EMI interest every month. If the borrower opts for capitalisation of the pre-EMI interest, he/she ends up with higher principal liability. It will result in a higher EMI than usual.

✅ Why is the EMI stipulated by the company higher than what I have calculated using the EMI Calculator?

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The financing companies charge processing fees, insurance, and other fees by debiting the loan account. They provide the facility of capitalising these charges, thereby increasing your EMI. As a borrower, you might not have accounted for these charges at the time of calculating the EMI.