Bank of India Home Loan EMI Calculator

A home loan gives you the financial strength to buy or build a new home. Many Indians dream of a new house for their families and future generations. But it can be tough to finance such a plan due to the increase in real estate costs.

As you will have to pay the EMI to repay the loan, you need to know how it is calculated. The ACKO Bank of India home loan EMI calculator will estimate the monthly payments along with the repayment schedule. Keep reading below to learn how it can make your life easy.

Home loans help you with the investment for the purchase, construction, renovation or extension of a house. They are repaid over a long-term horizon. Mostly, the home itself is pledged as collateral for the loan. Once the loan is repaid, the ownership of the house is restored to you.

The terms and conditions of Bank of India home loans depend on certain key factors. They include your financial status, the amount of loan you want, the duration over which you want to repay the loan, and the EMI you would be comfortable paying. The interest rate for Bank of India home loans starts at 8.30% per annum. The tenure can go up to 30 years and cover up to 90% of the value of the home purchase. 

As taking a home loan is a long-term commitment, you must research all the terms and conditions of the loan before taking it. You can prepare your repayment schedule with the ACKO Bank of India home loan EMI calculator by following some simple steps which we will cover further.

The ACKO Bank of India home loan EMI calculator makes it easy for you to calculate your monthly payments. Let us look at the Bank of India home loan calculator formula.

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

Here is what the different variables stand for:

R stands for monthly interest rate

N stands for tenure of loan repayment in months

P stands for principal amount

EMI stands for Equated Monthly Instalment

Now, we will understand how Bank of India home loan EMI calculated with the help of an example.

Suppose Sunita took a home loan worth Rs. 30 lakh for a tenure of 25 years at an interest rate of 9% per annum.

Then, the different variables will be entered as:

R = 9/100/12 = 0.0075

N = 25 x 12 = 300

P = 30,00,000

Thus the EMI is calculated as follows:

EMI = [30,00,000 x 0.0075 x(1+0.0075)^300]/[(1+0.0075)^(300-1)]

EMI = Rs. 25,176

This is how the EMI calculator estimates your monthly EMI payments. It will be very tiring to calculate the EMI payments manually. Moreover, you could also end up making mistakes. It would be much better to use the online EMI calculator. It will save you a lot of time and prevent any mathematical errors.

Below you will find the amortisation schedule for the initial 12 months of loan repayment.

As you can see, in the case of a home loan with a fixed interest rate, the EMI which goes towards the principal payment increases with time while the portion which goes towards the interest payment decreases.

A home loan can help you purchase, construct, renovate, or extend your home. While you plan your EMI repayments, it is also important to consider what could happen in unforeseen situations. What if for some reason you cannot repay the loan? In the worst-case scenario, the responsibility for repaying the loan will fall upon your family.

To prevent the loan from becoming a financial burden, you can take a home loan insurance or term insurance plan. Both will help your family to repay the loan in unpredictable situations.

Bank of India home loan EMI calculator was designed with customers like you in mind. It is simple and easy to use. Following are advantages of a Bank of India home loan calculator using ACKO:

You can begin preparing for your home loan with ACKO’s home loan EMI calculator. It will accurately calculate the EMI and show you the repayment schedule. The interface is user-friendly and doesn’t require any financial expertise.

To customise the calculator, you change loan amount, tenure and interest rate. It will help you compare different home loan plans and select a plan which suits your budget the best.

ACKO Bank of India home loan EMI calculator is available on our website. Once you are done entering the values, it will accurately calculate the EMI you will have to pay. You can do as many calculations as you want till you are satisfied with the EMI amount.

It is very easy to plan your Bank of India home loan repayment using ACKO Bank of India home loan EMI calculator. To compare different plans, you can simply change values in the calculator. It has a user-friendly interface and you will find it very easy to use.

Besides the calculator, you can also explore our other tools and services. We are a pioneer in bringing digital insurance to India. You can use ACKO to take charge of your finances and buy the best insurance plans.