Punjab & Sind Bank Home Loan EMI Calculator

Is buying a home one of your life goals? Home loan is a financial tool many people benefit from while fulfilling their dream of owning a house. There are many who have sufficient funds to buy or build a house but they face a dilemma while choosing between exhausting their savings and taking a loan and repaying it. 

Many people choose to take a home loan as it comes with a number of benefits including considerable tax exemption. However, choosing the perfect home loan and repaying it is a matter of thorough planning and strategizing. To help one do that, Punjab & Sind Bank offers its customers a home loan EMI calculator. 

In this blog, we will discuss how Punjab & Sind Bank home loan EMI calculator can help you in your preparation for taking a home loan and repaying it seamlessly. 

A home loan or a house loan means a sum of money that one borrows from a bank or a non-banking financial company for the purpose of buying or constructing a house. Generally, home loans come with adjustable tenures, and fixed or floating interest rates. 

The purpose for taking a home loan can be buying land for construction of a residence, purchasing a plot and constructing a house, renovating, extending or repairing an existing house, etc. A loan bearer mortgages the property to the lender as collateral until he/she repays the loan. 

Punjab and Sind Bank, an Indian public sector bank, was established in Amritsar on the principle of social commitment in the year 1908. Now, with 1553 branches all over India, this bank caters to a wide variety of financial needs of people. Providing home loans at competitive interest rates is one of their services. 

With their mission to serve customers using state-of-the-art technology, they have digitised a plethora of banking services they provide. For home loan seekers they provide a home loan EMI calculator. It is a crucial tool with the potential to become a staple in improving your financial strategy. 

Now that you know how crucial it is to use an EMI calculator, you may benefit from knowing ACKO’s Punjab and Sind Bank home loan EMI calculator formula with which monthly instalments are calculated. 

Here it is - 

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

The alphabets represent: 

P - Principal amount

R - Interest rate per month

N - Tenure (in months) 

Now, if we will use this in context of an actual calculation: 

For example, Mr Apratim has taken a home loan of Rs. 10 lakhs at an 8.55% interest rate or 0.68% per month. His repayment tenure is 5 years or 60 months. So, the equation reads like this: 

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

It means that Mr Apratim has to pay Rs. 20,541 per month for 5 years to repay the loan. However, a manual calculation using this formula would not give him the amount of total interest he has to pay. Using the Punjab & Sind Bank home loan EMI calculator he can calculate that it is Rs. 2,38,438. 

If one chooses to pay the loan at a fixed interest rate, one has to pay the exact same EMI through the length of his/her tenure. However, it is interesting to note that this payment would be different towards the interest and the principal every time. 

You can see how payment breaks down to interest paid and principal paid in the following amortisation table. This table shows the loan amortisation of Mr Apratim from the example above: 

While applying for a home loan many people consider opting for home loan insurance or term insurance. This is due to the fact that if a borrower, a sole earner of his/her family, meets an accident that brings permanent disability, or death a home loan will become a huge liability for the family. 

Opting for term insurance or home loan insurance is to safeguard a loan bearer's family from facing the liabilities, losing their home or assets and collaterals. However, it is worth mentioning that no lender mandates such insurance except property insurance. You can also choose any bank or NBFC for your insurance. Let us see how each insurance can help a home loan applicant out.  

It can be difficult to repay a loan on behalf of someone else. If a borrower's family fails to repay it, the financial institution has to seize the collateral or the house. A home loan insurance cover will prevent this from happening. This will ensure that a loan bearer's family will not go through a tough time financially after the mishap with the sole earner. 

A borrower can pay the premium all at once using a one-time premium method. However, if a loan bearer cannot afford that, banks and NBFCs can add the premium to the home loan amount. This way you pay the premium through EMIs. 

In case something happens to the borrower, the basic HLPP will cover it. You can get many other coverages for different conditions by adding a rider scheme. It will cost you an additional premium, but with it, you can also cover disability, unemployment, and other severe conditions like heart attack, cancer, traumas, etc. 

If you have co-applicants in your loan, home loan insurance will also cover them. Members of your immediate family can apply for a home loan jointly. In case one of these members dies untimely, the home loan insurance will cover it. 

You need to be only 18 years old to opt for term insurance. You can get high coverage at economical rates if you buy term insurance earlier in life. By taking term insurance you can make sure that your family does not have to bear the liabilities of paying a home loan or lose the property. 

There is an option of adding term riders to get more coverage of your base term insurance plan. For example, you can cover accidental death, terminal illness, accidental total permanent disability, critical illness, etc. 

Term insurance is one of the most affordable life covers as one can get Rs. 1 crore of cover by paying a premium of Rs. 473 per month. Generally, term insurance premiums are lower than other life insurance.

While there are numerous EMI calculators on the internet, using a loan-specific calculator, in this case, a home loan EMI calculator, is the best. Whatever the loan type is, all have some common parameters. However, a few aspects can be unique to some loans and may demand a loan-specific calculator. 

It is necessary to use a reliable calculator for such crucial decision-making. For example, if you have found out about ACKO's EMI calculator, you can count on its speed and accuracy. Here are some of the benefits of using Punjab and Sind Bank home loan EMI calculator at ACKO: 

Utilising ACKO's Punjab & Sind Bank home loan EMI calculator is exceptionally straightforward. You can access the web page and navigate to the EMI calculator section to find out the exact EMI for your home loan. To get the results, provide input on the loan amount, interest rate, and repayment tenure.

Furthermore, ACKO offers customisation options for all variables. You can change each one based on your budget to instantly receive an accurate result that meets your financial needs. It allows you to modify the details however many times you want to assess and compare the instalments and match your budget. These customisations enable you to confidently settle with an EMI that precisely fits your budget and corresponds with your financial objectives.

In essence, the ACKO Punjab & Sind Bank home loan EMI calculator serves as a valuable online resource for individuals seeking a home loan. The user-friendly interface simplifies navigation and facilitates the input of loan details for calculating monthly instalments effortlessly.