Vijaya Bank Home Loan EMI Calculator

The rising real estate prices are making it increasingly difficult to buy a house with just savings. Purchase of a home requires significant financial commitment. You may find it financially difficult to pay so much in one go. Instead of paying the money entirely out of your pocket, you can take a home loan.

If you are considering purchasing the loan from Vijaya Bank, to repay the loan, you will have to pay Equated Monthly Instalments or EMI. To get an idea of how much you will have to pay, you can use the Vijaya Bank home loan EMI calculator.

Please note that Vijaya Bank was merged with Bank of Baroda in April 2019. Therefore, it doesn’t function as a separate entity.

A home loan can help you financially to buy your house. It can also be used to renovate, construct, reconstruct, or extend a house. When you take a home loan, the title of the home is in the hands of the lending institution. Once you repay the loan, the ownership of the home is restored to you. Failure to pay the loan, on the other hand, can lead to the seizure of your home.

The interest rate offered by the lending institution depends on your financial status and credit score. In particular, the EMI depends on the loan amount, the interest rate and the duration of repayment.

You may be wondering how EMIs are calculated. Let's look at the formula used by the Vijaya Bank home loan EMI calculator to calculate your EMI:

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

The different letter stand for the following variables:

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’s go through an example to understand how the calculator works in real life.

Suppose Karan has taken a home loan of Rs. 50 lakh for a tenure of 20 years at an interest rate of 8 %.

Here’s how the different variables will be used by the calculator:

R = 8/100/12 = 0.0067

N = 20 x 12 = 240

P = 50,00,000

Thus the EMI is calculated as follows:

EMI = [50,00,000 x 0.0067 x(1+0.0067)^240]/[(1+0.0067)^240-1]

EMI = Rs. 41,822

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

We have provided the amortisation schedule for the initial 12 months for the loan example we have considered.

While planning your loan repayment, you must consider emergencies in which you may not be able to repay the loan. For financial security during such situations, you can opt for home loan insurance or term insurance. Below we have considered how the 2 compare with each other.

Term insurance plans have lower premiums than home loan insurance. Thus term insurance can offer you more value for money than home loan insurance. You can visit ACKO’s website to calculate the premium for term insurance.

A home loan covers the outstanding loan amount. The lesser the outstanding amount, the lesser will be the coverage provided by insurance. Coverage of term insurance can be much broader. Your family can use it to repay the loan as well as for other expenses. Beneficiaries get a lump sum amount as a death benefit. 

Tax deductions of up to Rs. 1.5 lakh can be claimed for both home loan insurance and term insurance. These tax deductions are covered by Section 80C of Income Tax Act, 1961.

Both home loan insurance and term insurance allow you to opt for add-on benefits such as coverage for unemployment and accidental death. Premium is higher in case of home loan insurance than term insurance.

You can easily calculate your EMI with the ACKO Vijaya Bank home loan EMI calculator. Following are the advantages of using Vijaya Bank home loan EMI calculator

It is very easy to customise ACKO’s EMI calculator. All you need to do is change the values for loan amount, interest rate, and tenure of loan, by using the horizontal scroll bars. This helps in evaluating EMIs you will have to pay for different loan conditions. This knowledge helps you in making an informed decision about the loan you will eventually take.

Calculating the EMI is a crucial step towards taking the right home loan. You can use ACKO’s  Vijaya Bank home loan EMI calculator to see which loan conditions suit you most. Changing loan amount, interest rate, and tenure lets you compare different home loans.