Home Loan Rates 2018 4662 views
A ₹30 lakh loan is what you are hunting to get the keys to your dream home, right! So, what is the homework you need to do to ensure a smooth repayment of the loan amount? Well, you can’t separate mathematics from the world of finance. In every step of a home loan journey, the mathematics will have a relevance. So, before approaching the lender for a home loan, do make it a point to glance at the loan mathematics i.e. EMI calculator to know the payment that lies ahead. It’s one big due diligence you should do. In the absence of the same, you won’t get an idea of the repayment and thereby put yourself in a spot of bother. So, let’s start and study the function of ₹30 Lakhs Loan EMI Calculator for a smooth walk into your dream home.
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What Does the Calculator Show?
The EMI calculator is one mathematical tool that can display the script of the repayment in a matter of seconds. Just type the loan amount, tenure and interest rate to find the repayment summary on the screen. Don’t go by the name to get an impression that the calculator is there to tell you the amount of EMI alone. In reality, it goes beyond and shows the amount of interest to be paid from your pocket over the loan tenure.
EMI or say equated monthly installment is the combination of principal and interest amount payable towards a home loan each month until the expiry of the loan tenure, which can be upto 20-30 years. A huge number of repayment years, isn’t it? Over the years, the total outgo from your pocket can so easily be more than double the amount of loan. But a meticulous planning can help you reduce a fair amount of interest on the loan. Let’s just read the illustration below to understand the criticality of the matter better.
Example– Shyama Mukherjee, with a monthly income of ₹60,000, is servicing a home loan of ₹30 lakhs at an interest rate of 8.40% per annum. The loan period opted by him is 25 years. His friend Rohan Desai, with the same income, opted for the same loan amount. Interestingly, the interest rate is also same. But he has decided to go with a 20-year tenure. Now, who is most likely to win the repayment battle? Let’s check that out in the table below.
|Individuals||Loan Amount (In ₹)||Tenure (In Years)||Interest Rate (In % p.a.)||EMI (In ₹)||Total Interest Outgo (In ₹)||Total Repayment (In ₹)|
Here is an example:
Table Showing EMI, Interest Outgo, and Total Repayment Amount EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
Total Interest Amount
Table Showing EMI, Interest Outgo, and Total Repayment Amount
EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
EMI and Interest Outgo on a 20-year Home loan of ₹30 Lakh at Top Lenders
Check out in the table below showcasing the interest rate and EMI applicable on 30 lakhs loan at several lenders.
|Banks/NBFCs||Interest Rate (p.a.)|
|State Bank of India (SBI)||8.45% - 9.00%|
|HDFC Limited||8.50% - 9.15%|
|ICICI Bank||8.55% - 9.05%|
|Bank of Baroda (BoB)||8.45% - 9.45%|
|LIC Housing Finance||8.45% - 8.90%|
|Axis Bank||8.50% - 8.85%|
|Indiabulls Housing Finance||8.50% - 10.80%|
|DHFL (now Aadhar Housing Finance)||9.05% - 9.95%|
|Citibank||8.45% - 9.20%|
|Bajaj Finance||8.50% - 10.00%|
|IDBI Bank||8.45% - 8.75%|
|Kotak Mahindra Bank||8.60% - 8.70%|
|PNB HFL||8.85% - 11.75%|
|Standard Chartered Bank||8.51% - 8.60%|
Will 30 Lakhs Home Loan EMI Calculator Work in Balance Transfer?
The answer would be a resounding ‘Yes’. Read the example below to know the reasons for answering in affirmative.
Example-Assume you are currently servicing a 20-year home loan of ₹30 lakhs at an interest rate (base rate) of 9.75% per annum. Five out of the 20 years are over, and you are looking to transfer your outstanding balance to the MCLR mechanism at your lender, which is offering you the switch over facility at 8.60%. The EMI calculator will show the amount of interest paid by you in the five year period, in addition to the monthly installment. Let’s check out the table below to know the mathematics of balance transfer with the help of EMI calculator results.
|Particulars||Details (In ₹)|
|(A) Loan outstanding after 5 years||26,86,096|
|(B) EMI payable in existing loan||28456|
|(C) Interest payable in 20 years||38,29,321|
|(D) Interest paid in 5 years||13,93,426|
|(E) EMI payable on outstanding loan at new rate of 8.60% for 15 years||26609|
|(F) Interest to be paid in the remaining 15 years||21,03,477|
|G) Sum of interest paid in 5 years and to be paid in the next 15 years||34,96,903|
|(H) Savings (C-G)||3,32,418|
The savings as shown in the table can get subtracted from the switchover fee, which can be around ₹5,000-20,000. So, the overall savings would be 3,12,418-3,27,418.
A Take on Home Loan Essentials and Rates Scenario
Home buying is one massive decision to make because it involves a repayment of massive interest over the years when you decide to opt for a loan to fulfill the purpose. About 85%-90% of the property value gets disbursed into your account, leaving another 10%-15% of the payment to be done from your end. So, if the loan amount of 30 lakhs constitutes 90% of the property value, a down payment or say a margin of 3,33,000 has to be paid from your end to the seller of the property.