RBL Bank Home Loan EMI Calculator

RBL Bank Home Loan EMI Calculator

RBL Bank is one of the most established banks in PAN India. It is a private sector bank that has its presence all over the country. This financial institution is still expanding. The RBL Bank has its services spread across 5 verticals majorly, in total. These are namely, Commercial Banking, Corporate & Institutional Banking, Branch & Business Banking, Treasury and Financial Markets Operations, and Retail Assets. 

Among the key banking services of the RBL Bank, the home loan service comes under the Retail Asset vertical. This one keeps the vision of the bank as well as the customer in mind and gets their requirements met to the fullest. This financial institution has a variety of schemes which can offer an individual exactly what they are looking for. With the primary aim to satisfy the customer, RBL Bank takes it upon itself to bridge the gap between the property one wants to buy and the limited funds that they have.

RBL Bank is known to offer home loans at the convenience of the borrower along with easy documentation. Even the processing of the home loan application at this bank is quick as well as without any delays. This works great for individuals who do not wish to delay owing their dream home any further. 

Benefits of using RBL Bank’s EMI Calculator

RBL Bank’s EMI Calculator is a free online tool that offers anyone with an assistance to calculate the monthly EMIs, interest, and the total interest too easily. This offers a hassle free calculation and provides a clear picture of the amount that a borrower would need to repay monthly, as per their own loan amount, tenure, etc. 

The following are the many benefits provided by the EMI Calculator, courtesy of RBL Bank:

• Tenure Based EMI

The EMI calculator by RBL Bank is accessible by anyone from anywhere. With its easy usage and accessibility, an applicant can see for themselves what EMI they will have to pay per month based on the tenure they are applying the home loan for. This provides a clear picture and give them a chance to gather their funds in order to plan as per their own budget as well as convenience. One can put in the different loan amounts and tenures and even interest rates, but when it comes to the last one, it is highly recommended to check with the bank first if an applicant is even eligible for a loan at that interest rate or not.

• Comparison With Other Banks

The RBL Bank EMI Calculator lets its users determine and compare different loan rates available at RBL Bank and at other leading Indian banks along with the cons and pros in terms of the funds and their repayments. With this, the individuals can feed into the calculator different amount and tenures and get the necessary results based on the interest rates of the 2 different banks. This makes it easy for a borrower to determine if they are making the right decision or not while choosing a bank for home loans.

• Detailed Amortization

When one inputs the data into the RBL Bank’s EMI Calculator, they get a fair picture of all the details that are of their requirements. This includes the bifurcation of the total EMI as well as monthly EMI into the principal amount of the home loan acquired along with the interest levied as per the tenure of the home loan. This can also be determined for the whole period of the loan taken by the borrower.

• Outstanding Balance Calculation

It is hard keeping track of the outstanding loan amount at all times. Luckily, the EMI Calculator by RBL Bank lets its users determine the amount that is remaining to be paid. The EMI Calculator is very much useful in letting the user know what the outstanding amount is at any given point of time.

Step by Step procedure to Calculate EMI in RBL Bank’s EMI Calculator

The EMI Calculator by RBL Bank is very easy to use. Here is the step-by-step procedure to use the EMI Calculator by the RBL Bank:

There are 3 main fields that need to be filled. These are: Total Loan amount, Interest rate, and tenure.

Step 1 – First of all, one needs to fill out the fields mentioned in the previous point. 

Step 2 – The tenure needs to be out in months, so it is advisable that one, either manually or with the help of a calculator multiplies the number of years by 12 to get the exact number of months. 

Step 3 – Then, all one has to do is to get a click on Calculate, which will give them the Loan EMI, Total Interest Payable, and the total payment one has to do adding the principal home loan amount and the interest amount.

RBL Bank Home Loan EMI Calculator

The formula for a Home Loan from RBL has the following EMI Calculation:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

In this formula,

E means Equated Monthly Instalment,

P means the actual loan amount or the principal loan amount,

R means the Interest rate that will be charged per month. It should be the monthly interest rate. To take out the monthly interest rate, the annual interest rate should be divided by 12, that is the number of months in a year,

N means the total loan tenure in months or the number of monthly instalments.

This is worth noting that the processing fee levied by the bank is not included in the above calculation.

For Example:

Sandeep has borrowed a home loan which is of amount 10,000,000. The bank which has given such a loan has the rate of interest set as 8%. The tenure of the loan is agreed upon by the bank as well as the applicant to be 20 years.

Now, the principal amount in the above example is 10,000,000. The rate of interest is 8% and the tenure of the loan in terms of months is 240 months. When the formula is applied:

[10,000,000 x 8/100 x (1+8/100) ^240] / [(1+8/100) ^ 240-1]

This gives the monthly EMI of Sandeep to be ₹8,364. This means that he paid 100,368 rupees as his loan repayment during the whole year.

Similarly, if we take another example of Shikha.

Shikha has just borrowed an amount of 25,000,000 from her bank and that has a monthly interest rate of 9.50%. She has opted to repay the bank for her home loan with the next 30 years.

Monthly EMI = [25.000.000 x 9.5/100 x (1+9.5/100) ^ 360] / [(1+9.5/100)^360-1] This brings the monthly instalments that Shikha has to pay to a figure of Rs 210,214.

This consequently makes the yearly payments to be 2,522,568 rupees.

FAQs

Is RBL Bank’s home loan interest rates considered one of the lowest?

The RBL Bank is considered one of the best in India to acquire a home loan, thanks to the lowest interest rates which are present here.

Can an applicant opt for a co-applicant?

Yes, an applicant for a home loan can most definitely opt to have a co-applicant. But, the only catch is that this person has to be a blood relative and should reside in the same locality as the borrower.

What types of tax benefits are applicable on the home loans by RBL Bank?

When one takes a home loan from the RBL Bank, or any other, they enjoy the tax benefits for the whole amount. As per the Income Tax Act, 1961, the borrower is benefited under some components in terms of both the repayments, the principal amount as well as the interest amount.

What necessary documents are required in order to apply for a home loan at RBL bank?

One is required to show the necessary documents that come under 3 major categories, which are listed below:

• Documents pertaining to the home loan application of RBL Bank.
• Documentation for the property of the respective borrower.
• Financial documents of the borrower, whether they are salaries employees, or self-employed.

How many years of income tax return documents have to be submitted at the RBL Bank for a home loan?

An individual is supposed to submit a total of 2 years’ income tax return documents in order to attain a home loan from the RBL Bank.