What is Home Loan EMI?
A bank or non-bank financial institution (NBFC) can apply for a loan and buy a home. home loan are one of the most important and most sought after loans in the current scenario. As the value of real estate increases, it is advisable to own a home from the perspective of both homeowners and investors.
You get a fair amount of loan over a long period of time. Banks and financial institutions charge a fixed interest rate. loan EMI consists of both principal and interest and is fixed for the life of the loan.
What is a Home Loan EMI Calculator?
The Home Loan EMI Calculator is a simulation that helps you calculate the EMIs, which you must pay on the home loan. The home loan calculator will calculate the monthly EMIs depending on the principal, interest, and the duration of the home loan.
It consists of a box, with three sliders, mainly ‘Loan Amount’, ‘Loan Tenure’, and ‘Interest Rate’. Once you fill in the details, you will be shown how much EMI (Equated Monthly Instalments), you must pay the bank each month, to repay the home loan within the selected tenure.
The mathematical formula to calculate EMI is: EMI = P × r × (1 + r)n/((1 + r)n – 1) where P= Loan amount, r= interest rate, n=tenure in number of months.
1. EMI = [P x R x (1+R)N ]/[(1+R)N-1]
2. P is the principal or loan amount.
3. R is the monthly home loan interest rate.
4. N is the number of EMIs or the tenor in months.
5. EMI = [P x R x (1+R)N ]/[(1+R)N-1]
6. (1+R)N = (1+.008331250) 240 = 7.322.