For an Indian family, the purchase of a home is a big decision. The expenditure involved in buying a home is significant and it can be difficult to pay for it entirely in one go. This makes taking a home loan one of the most popular ways to buy a house. 

Before taking a home loan, you must calculate the EMI that you will have to pay. ACKO’s Bank of Maharashtra home loan EMI calculator will tell you the EMI you will have to pay for a home loan. Scroll below to learn more.

A home loan can help you in buying, building, constructing, renovating, or extending a house. Usually, you will have to pledge your home as the collateral. To repay the loan you will have to pay Equated Monthly Instalments or EMI. Once the loan is repaid, the title of the home will be restored to you.

Bank of Maharashtra offers home loans at competitive interest rates starting at 8.35% per annum. The loan tenure can go up to 30 years. The loan amount can cover up to 90% of the value of the loan.

Repaying a loan demands significant financial commitment. You must read all the terms and conditions carefully before signing on the dotted line. The three main factors which affect your EMI are loan amount, interest rate, and tenure of the loan. The interest rate itself can vary according to your financial status, in particular your credit score and income.

Calculating EMI for your home loan is necessary to make a financially sound decision. We need to look at the formula for calculating the EMI to see how the calculator works.

A Bank of Maharashtra loan EMI calculator works by using the following formula:

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

Here is what the different variables represent:

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

Let us consider an example to see how the calculator works in real life.

Jaswinder has taken a home loan of Rs. 80 lakh for a tenure of 23 years at an annual interest rate of 7%

The different variables will be entered as:

R = 7/100/12 = 0.00583

N = 23 x 12 = 276

P = 80,00,000

Thus the EMI is calculated as follows:

EMI = [80,00,000 x 0.00583 x(1+0.00583)^276]/[(1+0.00583)^276-1]

EMI = Rs. 58,394

This is how the Bank of Maharashtra home loan EMI calculator will calculate your EMI. If you calculate the EMI manually, it will take a lot of time and you may also end up making mistakes. The online EMI calculator provides a hassle-free way to calculate the EMI without any errors.

In the following table, you can find the amortisation schedule for the initial 12 months of the loan example discussed above.

The above example illustrates that in a home loan with a fixed interest rate, the chunk of the EMI going towards the principal repayment increases every month while that going towards the interest payment falls.

A home loan can finance the purchase, construction, renovation, or extension of your home. You must also think about how to repay the loan in difficult times. What if you cannot repay the loan? What if something happens to you? In the worst-case scenario, the responsibility for repaying the loan will fall upon your family.

You can take a home loan insurance or term insurance plan to prevent the loan from becoming a financial burden. Below we have considered the pros and cons of both.

You can effortlessly calculate your EMI using ACKO’s Bank of Maharashtra home loan EMI calculator. Here are the benefits of the Bank of Maharashtra home loan calculator.

Calculating the EMI is a crucial step towards selecting a home loan plan. A home loan can lead you to the house of your dreams. Bank of Maharashtra offers competitive interest rates for its home loans. You can compare the different terms and conditions offered by the bank for its home loans.

ACKO home loan EMI calculator lets you customise the loan conditions. You can calculate different EMIs by setting different values for loan amount, interest rate and tenure. ACKO’s website has a user-friendly interface and the calculator is very easy to use. By comparing different EMIs, you can check which loan conditions suit you best.

Taking a home loan is a very common path to building a home. But you must also be ready to prepare the EMI on time. This is where an EMI calculator comes into the picture. ACKO’s Bank of Maharashtra home loan EMI calculator will give you a breakdown of your monthly loan repayment. It is a hassle-free way to plan your finances and secure your future.

Managing your finances and making informed decisions can be a difficult task in today’s fast-moving world. With our expertise in the financial space, we offer you a one-stop solution to manage all your finances.