Owning a house is always an excellent idea as it appreciates in value over time. In the present scenario, a home loan is one of the most in-demand loans in the market, offering a predictable path towards house ownership. You can avail this loan at any bank or NBFC (Non-Banking Financial Company) for the purpose of owning a house. 

Before applying for a home loan an applicant has to do market research and a multitude of preparations. Among them comparing multiple loan types, interest rates, lenders, and other terms and conditions are a few. Union Bank of India home loan EMI calculator can provide great help at this juncture. 

The home loan EMI calculator is an online tool with which you can calculate EMIs. It can also show you many other details crucial for strategizing your home loan and repayment of it. To learn more about this necessary financial ally and how to use it, continue reading this blog. 

It is everyone’s dream to own a house. However, not many people have enough money readily available to buy a house. This is where this financial solution bridges the gap. It offers eligible individuals the funds necessary to buy a property. They can use it to buy a plot of land, construct a house, renovate or extend an existing building, and so on. A borrower has to repay this loan over a tenure they choose. 

Union Bank, one the largest PSU banks that serves more than 153 million customers, caters to diverse financial needs. Also known as Union Bank of India or UBI, this public sector bank has a huge network of over 8700 branches across the globe. Home loans are one of its main financial services that make owning a house easier for people. 

Union Bank of India also offers a tool which makes calculating the EMI very simple. Apart from showing you the exact monthly instalments, it will also tell you what the total amount payable and the total interest is. Continue reading to learn how this simple tool can help you strategize far better than before. 

As we have mentioned a formula that a home loan EMI calculator uses, you may be curious to know a little bit more about how that works. Each alphabet in the formula represents a certain variable, the calculator collects the data you provide and uses the formula to generate an answer. 

The formula is: 

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

Here,

Let us imagine a scenario to describe the calculation process better: 

Mr Tanmay applied for a home loan of Rs. 20 lakhs from Union Bank of India at an 8.50% interest rate. His loan repayment tenure is 10 years. It means that P is Rs. 20 lakhs, N is 10 years or 120 months, and R is 8.50% p.a. or 0.68% per month. So, the equation reads like this: 

EMI = [20,00,000 x 0.68 x (1+ 0.68)^120]/[(1+ 0.68)^ (120-1)] = Rs. 24,797 

To calculate and get this one result manually can take extremely long and may not provide accurate results. However, if you put the same data in a home loan EMI calculator, apart from providing this result it will also add that Mr Tanmay have to pay a total amount of Rs. 29,75,657 and Rs. 9,75,657 total interest. 

You should also know that during your entire repayment tenure, you would pay the same EMI. However, your payment towards the principal and the interest would continue to change. This happens as loan amortises. 

To understand this process better let us take a look at the first 12 months of Mr Tanmay's amortisation schedule: 

In the beginning, your payment towards interest would be greater than the payment towards principal. Over time you would pay towards the principal more as the loan amortises.

For a borrower, a home loan is a long-term financial responsibility. That is why before applying for a home loan an applicant must ask the following question: In case some unforeseen circumstances like death, terminal illness, job loss due to permanent disability, etc. prevent one from repaying EMIs what would happen? 

The answer is a borrower can protect his/her family from liability of paying the loan, losing assets and collaterals, or losing their house by opting for a home loan insurance or term insurance. It is mention-worthy that it is different from home insurance which covers damage to the house due to unforeseen events. 

Most of the financial institutions that offer home loans now offer home loan insurance along with it. However, you should take note that no bank or NBFC mandates purchasing insurance. It is up to you to decide whether you do or do not want to worry about a mishap and losing your loan repayment along with your investments. On a positive note, you can purchase insurance from any financial institution regardless of your lender. 

Here is what Union Bank of India can offer to you: 

It is at your discretion to purchase this insurance. However, the bank always advises this insurance as it does not let the family members suffer in case of unfortunate events. 

This insurance also allows you to add a one-time Liability Insurance premium to the cost of the property. It will reduce a lot of financial burden. Furthermore, the bank has ties with various insurance providers in order to serve you with the most suitable products and reasonable premiums. 

This insurance covers any loss to the property and basically safeguards the Bank’s interest against any property damage. This mandatory insurance will cover the property structure and its possessions from losses caused by natural disasters and unpredictable damages.

The ACKO Union Bank of India home loan EMI calculator offers numerous advantages. Here is a list of perks you can expect from your primary financial ally:  

Using the ACKO Union Bank of India home loan EMI calculator is straightforward, requiring no financial expertise. Simply search from any browser and navigate to the calculator page to determine your monthly home loan payments.

One of the most appealing features of this EMI calculator is its ability to generate personalised results. By entering details like loan tenure, interest rate, and amount you can customise the parameters and get an immediate, accurate estimate.

Moreover, the calculator allows for unlimited adjustments, facilitating comparison of numerous results and instalment options. This ensures you can find the ideal fit for your financial goals. You can refine your calculations until you are satisfied with the results that align perfectly with your objectives.

The ACKO Union Bank of India home loan EMI calculator emerges as an indispensable tool for individuals navigating the complexities of home loan financing. Its user-friendly interface, comprehensive features, and precise calculations empower borrowers to make informed decisions about their financial future.

By using this powerful resource, one can explore various loan scenarios, gain clarity on his/her monthly repayment obligations and assess their affordability. Whether you are a first-time homebuyer or refinancing your existing mortgage, the Union Bank EMI calculator equips you with the insights needed to make sound financial choices.