Calculate Sundaram BNP Paribas Home Finance EMI

This company has a network of 116 branches situated across India. However, it retains a strong presence in the southern state of Tamil Nadu. The company offers Home Loans to meet all requirements of housing such as:

• Purchase or construction of houses/flats/apartments
• Purchase land and construct house thereon
• Balance transfer from other banks and NBFCs
• Top up loans
• Affordable Home Loans under PMAY

The best aspect of Sundaram BNP Paribas Home Finance Home Loans is the attractive rate of interest and easy processing formalities.

The Home Loan EMI calculation can be a complex one. The formula for calculating the Home Loan EMI is as follows:

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

• P - Loan amount availed by the borrower
• R - Rate of interest applicable on the Home Loan
• N - Number of monthly instalments

The manual calculation of the Home Loan EMI can be tedious. The Home Loan EMI Calculator is the ideal solution. Sundaram BNP Paribas Home Finance offers facilities to calculate Home Loan EMI on their website.

This calculation requires customers to provide the following information.

• The loan amount approved by the company or the amount you are looking for
• The applicable rate of interest
• The loan repayment tenure you can afford

Providing correct information gets you accurate results.

EMI stands for Equated Monthly Instalment. As the name suggests, EMI remains fixed and spreads out through the entire tenure of the loan. EMI depends on three variable factors:

• The Home Loan amount
• The rate of interest
• The loan repayment period

Thus, the EMI remains fixed for a specific loan amount, rate of interest (ROI), and repayment tenure. A variation in any of these figures can change the EMI.

EMI comprises of two constituents, the principal repayment portion and the interest component. In the initial stages of the Home Loan, the interest component is high as compared to the principal repayment portion. As you keep repaying the loan instalments, the principal repayment improves.

EMI commences one month after the date of full disbursement of the loan.

Additional Info: Also check HDFC Home Loan EMI Calculator

Sundaram BNP Paribas Home Finance offers Home Loans for constructing your homes. Under such circumstances, the company does not disburse the investment in a single instalment. It spreads its disbursement schedule according to your requirements. It entails providing a holiday period or moratorium to the borrower. The payment of the EMI will not commence immediately. Hence, the concept of pre-EMI interest comes into the equation. The interest debited to the loan account before the commencement of EMI is pre-EMI interest. Sundaram BNP Paribas Home Finance insists on the servicing of pre-EMI interest every month.

Additional Info: Also Apply Home Renovation Loan

• This calculator helps customers calculate their Home Loan EMIs in advance. It enables borrowers to understand the concept and affordability. Knowing the affordability helps them to determine their home loan eligibility.
• It becomes easy for the customers to manage their budgets when they are aware of their Home Loan repayment obligations.
• Knowing the prospective EMI ensures that the borrowers select the appropriate property depending on their affordability.

Additional Info: Also check ICICI Home Loan EMI Calculator

The Sundaram BNP Paribas Home Finance Home Loan EMI Calculator is a convenient tool to estimate your Home Loan EMI. However, alternatives are available on the internet.

MS Excel formula

Using MS Excel tables to calculate the Home Loan EMI is a popular mode of EMI calculation. The formula is as follows:

EMI = PMT(rate,nper,pv) where,

1. PMT - MS Excel function for EMI
2. Rate - ROI
3. NPER - Number of instalments
4. PV - Principal loan amount

MyMoneyMantra

The EMI Calculator available on the MyMoneyMantra.com website is similar to the Sundaram BNP Paribas Home Finance Home Loan EMI Calculator. Providing the necessary information enables customers to calculate the EMI instantly. Apart from the EMI, this calculator provides information about the interest payable by the customer over the full loan tenure.

Additional Info: Also check SBI Home Loan EMI Calculator

Any change in the Home Loan amount, rate of interest, and loan tenure affect the EMI. The following external factors are responsible for affecting these variable components:

Interest rate fluctuations

Sundaram BNP Paribas Home Finance offers floating rates of interest on Home Loans. The Home Loan interest rates are linked to the SH-PLR. The SH-PLR links to market-related rates. Hence, any fluctuation in the market rates can cause a change in the effective Home Loan interest rate. The floating rate concept entails that the Home Loan interest rates can move up or down anytime. It brings about a corresponding variation in the EMI.

Prepayment of Home Loan

The prepayment of a Home Loan affects the Home Loan principal amount. The objective behind the prepayment of the Home Loan is to liquidate the liability quickly. Therefore, customers usually do not approach the financing institution to restructure their EMI. However, customers do have this option. Any substantial prepayment in the Home Loan account can cause future EMIs to decrease.

PMAY subsidy credit

The concept of PMAY subsidy credit is similar to part prepayment. All PMAY beneficiaries get concessions in the form of an upfront interest subsidy. The principal loan amount reduces considerably on the credit of the interest subsidy amount. Hence, there is a restructuring of the EMI. Depending on the category to which they belong, customers can benefit by more than 2,300 per month because of a reduction in the EMI.

Pre-EMI interest capitalisation

Sundaram BNP Paribas Home Finance stipulates that the borrowers should service the pre-EMI interest monthly. However, specific circumstances might require capitalisation of pre-EMI interest. It results in the accumulation of interest with the principal loan amount. Therefore, the EMI increases accordingly.

Additional Info: Also Check LRD Loan