Bank of India Home Loan EMI Calculator

Introduction

Bank of India home loans is designed to cater to a vast cross-section of clientele with individual budgets. The Bank of India Bank Home Loan EMI Calculator provides the aspirant homeowner the insight to explore funding options and help arrive at an informed decision aligned with the needs. 

What is a Home Loan EMI?

The home loan is repaid over the chosen tenure in installments for the entire cost of the loan calculated with the applicable interest rate and other admissible charges.  The repayment amount is derived by dividing the home loan cost by the tenure in months for the installment. Since the installment is repaid monthly, it is termed EMI (Equated Monthly Installment). The EMI components are the principal and the interest outflow. Every EMI credit reduces the outstanding balance every month to be squared up at the end of the tenure. Significantly, the EMI is a fixed amount but the variables within change with every passing month. In the first month, the interest component is high while the principal is lower. With the reduced outstanding every month, the interest component goes down while the principal goes up. 

What is the Bank of India Home Loan EMI Calculator?

The Bank of India Home Loan EMI Calculator is a handy digital tool to calculate the financials of the proposed home loan. The outcome is displayed instantly for the applicant to view the contours of the proposed funding. The tool is user-friendly, seeking only basic information like the proposed loan amount, possible interest rate, and the tenure in months or years. The displayed outcome comprises the EMI, the total interest outflow during the tenure, the gross combined repayment amount for the principal, and the total interest at the tenure. 

The applicant is free to try the   Bank of India Home Loan EMI Calculator multiple times to match the applicant’s financial status. The following table represents the outcome with the range of inputs to help the applicant proceed with the proposed home loan.  

How to check EMI with the Bank of India Home Loan EMI Calculator?

The handy Bank of India Home Loan EMI Calculator is available 24/7 at the official portal for the applicant’s use. Alternatively, the applicant can invoke any of the several aggregators for a matching outcome. As already explained earlier, the inputs for the calculator are the:

• • Loan Amount.
  • Interest Rate.
  • Loan Tenure. 

The applicant must enter the inputs and try out different permutations and combinations, keeping the interest rate constant. The sample inputs and the outcome below are illustrative:

• • Loan Amount: Rs.1000000
  • Interest Rate: 6.95% per annum.
  • Tenure: 10 years (120 months). 
  • EMI: Rs. 11585
  • Total Interest Outflow: Rs.390211
  • Total amount Repaid (Principal + Interest): Rs.1390211. 

The Bank of India Home Loan EMI Calculator’s information is vital. It is always advisable for the applicant to first use the hassle-free calculator before committing to the home loan. The following guiding principles are critical to use Bank of India Home Loan EMI Calculator prudently.

• • The resultant EMI reveals if it fits the applicant’s monthly budget. The applicant can try out different variables to align with the homeownership project for a lower EMI.
  • The EMI provides the foreknowledge to plan the financials matching the applicant’s monthly earnings.
  • The EMI also helps the applicant plan for prepayment. The interest burden is reduced to liquidate the home loan before the tenure is over when additional funds are available.

How does the Bank of India Home Loan EMI Calculator help?

The groundwork for funding the dream house by purchasing or constructing serves the primary purpose of using the online Bank of India Home Loan EMI Calculator. The advance EMI calculation is the prerequisite for financial planning matching the individual’s budget. The handy online tool functions to deliver accurate results constantly through a reliable mathematical algorithm. 

• • Compute EMI for varying Tenures: Using the Bank of India Home Loan EMI Calculator with different amounts and tenures leads to an identical EMI of Rs.662 per Lac, one of the lowest in the home loan market. It can be the harbinger of a good deal, yet it is sensible to ascertain the actual applicable interest rate from the bank before finalizing. 
  • Home Loan EMI Comparison: The outcome from the Bank of India Home Loan EMI Calculator is best used fruitfully to compare similar EMIs offered by different leading banks. Comparison is ideally made by trying out varying inputs in contrasting permutations and combinations for an accurate appraisal. 
  • Generate an Amortization Schedule: The helpful derivative of the Bank of India Home Loan EMI Calculator is the Amortization Table, depicting the entire loan repayment spread for the chosen liability and the tenure, based on the interest rate. The break-up of the repayment components is valuable information enabling the applicant to plan the financials for the future in a long-term perspective. 
  • Monitoring the Outstanding Balance: The Amortization Table also helps the borrower be abreast of the loan balance movement to mobilize funds in the interim and ease the interest burden as and when possible. The information is also handy for a balance transfer if better deals are available for liquidating the home loan. 
  • Freedom for Flexibility:  The Bank of India Home Loan EMI Calculator is an online digital tool available 24/7 at the user’s convenience. There is no bar on its use for multiple outcomes using different combinations. The constant use with combinations can land the applicant into an affordable EMI comprising an ideal mix of the loan amount, tenure, and interest. 

What is the Home Loan Amortization Schedule?

It is already understood that the Amortization Schedule is the logical derivative generated with the inputs in the Bank of India Home Loan EMI Calculator. As the outcome is displayed, clicking on the EMI details generates the Amortization Schedule for the same inputs. The Amortization Table represents the EMI payment spread over the entire loan tenure helping the applicant use the information for multiple purposes. The EMI components are individually displayed as the Principal and Interest repaid every month or the cumulative annual total. After every EMI credit, the outstanding loan balance helps the applicant chart prepayment to impact the home loan financials. The sample Amortization Table below with the identical inputs for the EMI illustration is indicative of its various utilities. 

The points to note from the above Amortization Table:

• • The principal component goes up as the year progresses.
  • The interest component reduces as the year progresses. 
  • The table has been generated only with a ten-year tenure for the applicant’s easy grasp. 
  • The following images are illustrative of the Amortization Schedules efficacy.

Factors affecting the Bank of India Home Loan EMI Calculator:

The Bank of India Home Loan EMI Calculator computes the EMI based on the simple inputs comprising the loan amount, interest rate, and loan tenure. Each one of the inputs has a bearing on the final EMI in real life. The calculator only provides the basic structure to help the applicant design the customized home loan for project implementation. However, specific points are essential for making good use of the Bank of India Home Loan EMI Calculator.

• • Loan Amount: The higher the loan amount, the higher is the EMI. That apart, the higher loan amount also invites a higher interest rate and a higher margin. The result is that the LTV ratio reduces with higher loan amounts. It is pertinent to point out that the Bank of India provides home loans in the range of Rs.15 Lac to Rs.5 Cr in several tailored schemes to suit the aspirant homeowner. 
  • Interest Rate: Bank of India home loan floating interest rate is based on the external Repo Rate benchmark declared by the RBI from time to time. The current applicable rate is 6.85% per annum derived from the 4% Repo Rate plus the 2.85% mark up. The compelling lowest home loan interest starts at 6.95% per annum after the 0.10% CRP (Credit Risk Premium) is added. It is in the applicant’s interest to ascertain the effective interest rate from the Bank of India, which applies the final interest rate based on the applicant’s Credit Score from reputed and reliable credit rating bureaus like the CIBIL. It affects the overall home loan cost. 
  • Loan Tenure: Bank of India offers a generous home loan tenure extending up to a maximum of 30 years. Higher the loan tenure, higher the EMI, and vice versa. The applicant must choose the loan tenure to primarily suit individual needs and depend on the applicant’s age. The loan tenure is limited to the upper retirement age limit. The home loan is liquidated as the applicant retires. Thus, the applicant for a home loan at an older age will not benefit from the maximum loan tenure but only the remaining years to retirement. 

FAQs:

How does the prepayment impact the home loan repayment schedule obtained through the Bank of India Home Loan EMI Calculator?

Prepayment of the home loan reduces the interest burden as the credit goes towards the principal, thereby reducing the loan outstanding. The borrower can continue with the existing EMI for an early closure or reduce the EMI and adjust the tenure accordingly. 

Can the applicant ascertain the tax implications by using the Bank of India Home Loan EMI Calculator?

The applicant can quickly generate the Amortization Chart using the Bank of India Home Loan EMI Calculator. The chart expresses the annual principal and interest paid for the home loan with regular EMIs. As per the extant tax laws governed by the Income Tax Act, 1961, both the home loan principal and the interest repaid during the financial year are eligible for tax deduction under Sections 80C, 24, 80EE, and 80EEA, respectively. 

Does the Bank of India home loan EMI fluctuate during the tenure?

Bank of India applies only the floating interest rate benchmarked to the external RBI Repo Rate. The EMI interest components fluctuate with the Repo Rate movement, and the applicable interest rate is reset.

How is the interest rate applied and calculated by the Bank of India Home Loan EMI Calculator?

Bank of India applies only the floating interest rate on their home loan products daily, reducing balance at monthly rests.

What are the modes of EMI payment for Bank of India home loans?

Several modes are available to the Bank of India home loan borrower for the timely payment of the EMI. The usual modes are using post-dated cheques, ECS, or simply transferred from the account either manually or online, whichever is convenient. 

What are the different purposes for which the Bank of India home loan is suitable?

The Bank of India home loan purposes are purchase or construction of a residential property. The home loan can be used for extension, renovation, or balance transfer, as the case may be. 

What is the security obtained for the Bank of India home loan?

The security obtained for the home loan is equitable mortgage (1st charge) of the residential property. Other securities are obtained if the mortgage is not possible at loan disbursement. 

What are the special incentives bundled with the Bank of India home loan?

The borrower gets several incentives like personal accident insurance and furnishing loan at the home loan interest rate. 

Is the home loan amount enhanced by including the earnings of a close relative?

The close relative’s income is clubbed with the applicant for enhancing the loan amount, subject to adding them as the co-borrower. 

How efficient is the Bank of India Home Loan EMI Calculator?

The Bank of India Home Loan EMI Calculator uses a flawless mathematical algorithm that delivers accurate results time and again instantaneously.