Oriental Bank of Commerce Home Loan EMI Calculator

Are you currently looking for a home loan? As shelter over our heads is a basic necessity, the constant increases in property prices are making it difficult to fulfil this aspect. Whether the reason for taking a home loan is tax rebate, savings on rent, owning a house or anything else, such a loan is a task demanding careful strategising. To help you do that many banks and financial institutions provide home loan EMI calculators. It streamlines all the complex calculations necessary for choosing and repaying a home loan. 

If you are considering applying for an Oriental Bank of Commerce home loan you should also know about the Oriental Bank of Commerce home loan EMI calculator and how it can help you. However, make sure to note that the bank has recently merged with the Punjab National Bank and services are provided accordingly.

A home loan is a sum of money that you can borrow keeping the property you want to purchase as collateral. Banks or NBFCs allow you to pay the loan within a fixed tenure at a floating or fixed interest rate. 

Oriental Bank of Commerce (OBC) was a public sector bank that had a considerable presence in India with 2390 branches across the country. However, in April 2020, Oriental Bank of Commerce and the United Bank of India merged with Punjab National Bank. OBC’s home loans were well-known in India due to their competitive interest rates and some of the most extensive (up to 40 years) loan tenures in the market. 

There are various types of home loans to choose from. Depending on the purpose, whether you want to purchase a house, build a house on a plot that you have, extend or renovate your house, or a composite loan that allows you to purchase land and construct a house there. 

In the current market home loan interest rates range from 8.30% to 10.50% per annum. You can find the most suitable option by visiting the bank’s website online or you can visit your nearest bank branch and talk to their representatives.

If you want to avail loans that suit your budget and financial goals, ACKO’s Oriental Bank of Commerce home loan EMI calculator can be your ally. Continue reading to know how this online tool can supplement your financial strategy.  

To truly appreciate how a home loan EMI calculator simplifies your job you need to learn what the EMI calculating formula is: 

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

In this formula:

Now let us see how this formula works in a practical scenario: 

Suppose Mr Gautam has taken Rs. 10 lakhs as a home loan at 8.55% interest rate. His loan tenure is 5 years. So what would his EMI be? 

Here, 

The equation reads: 

EMI = [10,00,000 x 0.68% x (1 + 0.68%) ^ 60] / [(1 + 0.68%) ^ (60 - 1)] = Rs. 20,541

Rs. 20,541 is the EMI Mr Gaitam has to pay for 5 years. 

The EMI would not change if he opts for a fixed rate of interest. However, the amount going towards the principal and the interest would change gradually. You can take a look at his loan amortisation schedule to get a lucid understanding: 

You can see how Mr Gautam is paying gradually more and more towards the principal and less and less towards the interest.

Before applying for a home loan, a borrower should also consider scenarios where he/she is terminally ill or can face an untimely death. If anything like that happens repayment of the loan would fail and the family may lose the house or a significant part of their savings. 

To save your family from this huge liability what you can do is to purchase a home loan insurance or term insurance that covers your family in a situation like this. Let's see how this insurance can help you out: 

You can get high coverage at low premium rates by opting for term insurance. It is one of the most affordable life covers where you can get Rs. 1 crore of coverage with a premium of Rs. 473 per month. 

If you buy term insurance at an early age (the minimum age requirement is 18) you can get high coverage at affordable rates. Term insurance protects your family from liabilities that befall due to any mishap to you. 

By adding term riders to your base plan you can get coverage on conditions like accidental total permanent disability, critical illness, accidental death, terminal illness, etc. 

A home loan insurance cover is there to protect your family members from the liability of paying a home loan in case the loan bearer meets an untimely death. 

You and your immediate family members can apply for a loan jointly. A home loan insurance cover will provide coverage for the untimely death of any joint applicant. 

There is an option of paying the premium of this loan in a lump sum. However, you can also choose to pay the premium as EMI. The bank will add the premium to the loan amount to make it affordable for you.

There are multiple EMI calculators online that function on the same principle. However, it is always advisable to use a loan-specific and reliable calculator. Learn about the advantages and features of using Oriental Bank of Commerce Home Loan EMI Calculator through ACKO’s platform here: 

The ACKO Oriental Bank of Commerce home loan EMI calculator is user-friendly and does not require any financial expertise. It generates personalised results based on parameters that you provide such as loan tenure and interest rate. With unlimited adjustments and comparison options, it helps find the ideal instalment plan aligned with financial goals.

Hence, individuals in search of a home loan can leverage the ACKO Oriental Bank of Commerce home loan EMI calculator. Many home loan applicants have found it crucial to their financial planning.