Amortization Schedule

With the use of a home loan EMI calculator, it becomes easy to get the monthly amortization. However, it is also important for borrowers to understand how it is computed. Knowing how to compute it on your own will help you avoid any form of fraud.

Home financing will also require paperwork and the interest rates are obviously calculated with your credit history as a factor. The calculator can actually take into account details of your credit history and give you're the tentative rate of interest you are eligible for. If lenders ask for more then you are being swindled and thus you can prevent that from happening. Home financing is a tricky business and a calculator is perhaps the best way to deal with it. Make sure you take advantage of this tool! When seeking a housing loan it is suggested you use an online finance calculator to get a sign of the amount you really can afford to borrow. If in the market for property finance why not try a Home loan calculator to get you started.

What is Home Loan?

A Home Loan is a loan obtained from a bank solely for purchasing a fully constructed / under-construction property, or extension/renovation house, land, or plot for construction of your house . Banks and non-bank financial institutions (NBFCs) can provide you with a Home Loan. The House/plot/land is taken as a security by a financial institution for the Home Loan. so Home Loan is a secured loan. Nowadays, Home loans are also very reasonable.

Where can I get an easy Home Loan?

You may apply for a Home Loan online by visiting the websites of banks and nbfc. You must apply online or call their customer service representative to provide your information, after which they will arrange your appointment and an executive will contact you.

Who is eligible for Home Loan?

A house loan is available to those with a daily and consistent source of income, so a salaried or businessman can apply. Here I want to add that every bank/nbfc has a different policy to fund customers , with some taking out Loans on 15000 salaries, others on 2000, and still others on 30000. Some banks only work with well-known multinational corporations, while others also work with Indian businesses. As a consequence, you must approach each person one by one in order to find a suitable match.

Bank/nbfc also consider the age of a person, he/she should be between 21 and 60 yrs old.

Even if all conditions are met, The credit history of the borrower is also checked by Bank/nbfc. they still look at the CIBIL score, which is an extremely important factor. The CIBIL score is a method of determining a person's creditworthiness based on information obtained from other banks in which the customer has done business. After the data is gathered, the CIBIL score is measured, which usually ranges from 3 hundred to 9 hundred, with three hundred being the lowest and nine hundred being the highest. Any applicant with a credit score of 750 or higher will be approved for a loan without difficulty.

What are the documents required for Home Loan?

General documents asked by the banks while providing Home Loan for Salaried person;

• Application form with 3 photos duly signed
• Age proof (PAN Card, passport or 10^thstd marks card)
• Address proof (Passport, Aadhar card, Driving License, election card)
• ID proof (Aadhar card, PAN Card, Driving License , election card etc.,)
• Latest Salary slip of the last three months
• Bank statement of last six months (Salary account)
• Processing fee cheque
• Form 16 / Income Tax Returns
• Photo copy of all the documents related to the property (Allotment Letter / Buyer Agreement /agreement to sell)

General documents asked by the banks while providing Home Loan for Self-Employed

• Application form with 3 photos duly signed
• KYC Documents (address proof, identity proof, age proof
• Company account bank statement of latest six months
• Office registration documents
• Proof showing that the business is in existence.
• Photo copy of all the documents related to the property (Allotment Letter / Buyer Agreement /agreement to sell)

The list provided above is only indicative and exhaustive. It differs from bank to bank and it is at the discretion of bank as to what documents they require from each person. When an old customer who is holding an account with a particular bank for more than 10+ years obviously the trust they have on him/her will be more and hence documents asked will be less and scrutiny will be less. But that is not the case with a new customer who is requesting a Home Loan. In such cases, the scrutiny is higher and hence the documents that will be asked of such people will be more.

Home Loan Interest Rates, Fees & Tenure

The interest rate of Home Loan ranges between 7% to 15% and generally, the tenure period is no longer than 3 to 30 years generally. There is also processing fee charged by the banks but differs from bank to bank.

What is Home Loan EMI ?

EMI means "Equated Monthly Installment."

EMI is a specific amount paid by a loan taker every month for a specific period of time. It helps you to know how much EMI you have to pay every month on the basis of your loan amount and period along with the interest rate. These calculators are easily available on almost any loan-site which you surf through your net. They guide us, as to how much EMI I would have to pay according to the interest rate with tenure. Usually, many people think of interest rates before taking any loan, whether it is a home loan, personal loan, car loan, etc. Thus to make you worry less and to satisfy your EMI needs, the EMI calculator helps you compare your eligibility & make you prepaid to take a further step forward to take your desired loan. It is a benchmark to measure various lenders against.

How you will calculate your Home Loan EMI?

If you are looking for an EMI formula to develop an EMI calculator, here is the exact EMI formula that can be used for calculating EMI amount for any given values of Principal, Interest Rate, and Loan Period:

The formula to calculate EMI:

EMI = P x r x ( 1 + r )n / ( ( 1 + r )n - 1 )

			P for Principal (loan amount),
			r for the monthly interest rate (For e.g. If the Annual intrest rate is 10%, then r = 10/12/100= 0.008333),
			n for Loan Period in No. of months.
			

Loan Amount: The loan amount represents the total sum amount that an individual has borrowed from the banks or people (money lender) offering such loans in the market. The loan amount is for the quantity for which the individual is in need of money to get financed.

Rate of Interest: The Rate of Interest is charged upon the total amount of the loan. The rate of interest is never fixed it depends upon the period for which the loan amount is borrowed. It is said by experts that the loan is taken for a longer period, then the rate of interest will be lower as compared to the short loan period.

Term: Term refers to the period for which one has to repay the loan amount which was borrowed by the individual. Term is also known as Tenure. The word includes a number of years. The term of repayment is to selected by the borrower, so that it doesn’t become a burden to repay the loan amount.

For Example : if you took a loan of Rs.1Lakh payable in twelve months at the rate of 16 % p.a., the EMI would be Rs 9,073. In the first month, Rs. 1,333 of this would be interest and the remaining Rs. 7740 would be the principal amount monthly, thereby reducing the principal to Rs. 92,260. for the second month, interest will be Rs. 1,230 and the remaining Rs. 7,843 would be the principal amount. and so on. Your total repayment amount shall be ₹ 1,08,877 which includes Loan Amount of ₹ 1 Lk and interest of ₹ 8,877.

How to calculate Home Loan EMI in Excel?

EMI value can be calculated in Excel. You can use the PMT function to calculate your EMI. One of the most efficient ways to determine monthly credit repayment obligations is to use an Excel spreadsheet to calculate loan EMIs. Here is the following syntax:

 
				=PMT(RATE, NPER, PV, FV, TYPE) 	
				rate :-  Rate of Interest per month. (Annual Interest rate/12)
				nper :-  loan tenure in months. (year/12)
				pv :- Loan Amount.
				fv – future value [optional] 
				type – describes when EMI are due (0 for end of the month. & 1 for beginning of the month)[optional] 
			

For instance, if you want to find EMI value for a loan amount of 1,00,000 which is payable in say 5 years (i.e., 60 monthly installments) with an interest rate of say 10% p.a., the EMI can be calculated by placing the following formula in a cell in Excel spreadsheet:

 =PMT(10%/12, 60, 100000, 0, 0);

Please note that the rate to use in the formula should be monthly rate (rate/12) i.e. 10%/12=0.8333% in the above example. The PMT function applies to all excel version. see below picture

How to create Loan EMI Table In Excel.

• Use the "=PMT" formula to calculate your EMI.
• Use the "=Outstanding Principle * (Annual Interest rate/12)" formula to calculate monthly Interest Paid.
• Use the "=EMI -Intrest Paid" formula to calculate monthly Principle amount Paid.
• Use the "=Outstanding Principle-Principle Paid" formula to calculate Bal Principle amount.

VBA Code

This formula can also be used in VBA code. For instance:

 Dim Emivalue As Currency

    Emivalue = Pmt(RATE, NPER, PV, FV, TYPE)

Why You Should Use the Loan EMI Calculator?

Normally, the EMI calculator is used by anyone who plans to apply for a loan. It is a fact that there are different types of loans. Regardless of the loan type, the EMI calculator will still get the accurate answer that you need. Those who use the EMI calculator can be applying for a car loan, mortgage loan, home loan and other types of loans. In this article, the focus is on the loan EMI calculator. This refers to those who have an interest in loans. So, what are the advantages of using the loan EMI calculator?

Easy to use – It is easy and convenient to use because all it takes is to enter the values that are being asked. The details include the loan amount, interest rate and duration of the loan in the form of the number of years. Once all the information is entered, the monthly amortization instantly appear.

Accurate – Since there is no need to compute, the answer is considered to be accurate. The formula is already pre registered; therefore, it gives the closest answer if not the most accurate and exact.

Accessible – It is accessible in a way that it can be found online. Just look for a site that offers loans and you will surely find a loan EMI calculator.

Can be edited – Normally, loan applicants will try to find the most practical arrangement for a loan. This means that they will try all options to come up with the best choice. When using the EMI calculator, applicants can play with the values in order to find the best terms for the loan. Since it is electronic, you can easily change the values until you arrived at the best answer.

Online Home Loan EMI Calculator helps to calculate the total Interest and monthly EMI for SBI, Axis, icici, indusind, HDFC Home Loan.