The Canara Bank Housing Loan EMI Calculator provides a tool for home buyers to estimate their monthly repayments based on the loan amount, interest rate and loan tenure.
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EMI stands for Equated Monthly Instalment and is the amount paid each month to the lender by the borrower until the loan is paid off. The EMI comprises two components, the principal and the interest; the principal is the amount initially borrowed, and the lender on the principal charges the interest.
Using the EMI calculator, home buyers can create an estimated budget for their loan, enabling them to make an informed decision about whether the loan is affordable.
This blog post will explain how the loan amortisation schedule helps you pay your EMI and why you should use the Canara Bank home loan calculator. We’ll also look at factors that can affect your home loan EMI.
How EMI Calculation Helps In Purchasing a Home?
Obtaining a home loan in India is unique in comparison to other countries. A deposit, otherwise known as an EMI or Equated Monthly Instalment, is required to begin the process. This amount is used to decide the loan’s interest rate and is typically determined by the borrower’s earnings.
In addition, Indian banks demand a good credit history and consistent employment from the applicant. Nonetheless, home loan interest rates in India are usually lower than in other countries, making homeownership more accessible to Indian families.
When looking to buy a home, calculating the EMI is vital. Doing so can help you ascertain what is financially feasible for you. Consequently, this allows you to spend accordingly and prevents any unexpected debt.
How Loan Amortisation Schedule Helps Paying EMI
Loan amortisation is the practice of incrementally diminishing a debt through regular instalments. An amortisation schedule is a table that shows how these payments are applied to the principal and interest and what amount of the debt remains after each payment is made.
As borrowers make their scheduled payments, part of each payment is allocated towards the principal, and a part is directed towards the interest. The amount that goes to the principal fluctuates throughout the loan term, with more allocated towards the principal in the early years and less in the later years. Conversely, the share of each payment allocated to interest will be lower in the earlier years and higher in the later years.
The loan amortisation schedule can benefit borrowers who want to keep track of their payments and know how much they owe. In addition, consistently paying on time can assist in decreasing the total amount of interest that accumulates on loans, as well as help to create a positive credit history.
The loan amortisation schedule can help borrowers observe how these changes affect their regular payments and overall debt burden. Additionally, it can be a beneficial resource in budgeting for future payments, as borrowers can know precisely how much they need to allocate each month.
The following would be your amortisation schedule if you borrowed 20 lakh rupees for Nine years at an 8.55% yearly interest rate.
| Year | Beginning Loan Balance | EMI×12 | Interest Paid Yearly | Principal Paid Yearly | Outstanding Balance |
| 1 | 20,00,000 | 3,19,332 | 1,65,046 | 1,54,287 | 18,45,713 |
| 2 | 18,45,713 | 3,19,332 | 1,51,326 | 1,68,007 | 16,77,706 |
| 3 | 16,77,706 | 3,19,332 | 1,36,384 | 1,82,949 | 14,94,757 |
| 4 | 14,94,757 | 3,19,332 | 1,20,115 | 1,99,219 | 12,95,538 |
| 5 | 12,95,538 | 3,19,332 | 1,02,399 | 2,16,935 | 10,78,603 |
| 6 | 10,78,603 | 3,19,332 | 83,105 | 2,36,228 | 8,42,375 |
| 7 | 8,42,375 | 3,19,332 | 62,097 | 2,57,236 | 5,85,139 |
| 8 | 5,85,139 | 3,19,332 | 39,221 | 2,80,114 | 3,05,023 |
| 9 | 3,05,023 | 3,19,332 | 14,309 | 3,05,023 | 0 |
Why You Should Use Canara Bank Home Loan Calculator
When deciding if a Canara Bank Home Loan is right for you, the EMI calculator is one of the most important tools at your disposal. This simple online tool can help you estimate your monthly repayments and compare them to other potential loans from different lenders.
Read: 1 Crore Home Loan EMI With Calculator And Interest Rates 2024
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But why should you use the Canara Bank Home Loan EMI calculator? Here are three reasons.
- Get an Accurate Estimate of Your Monthly Repayments
One of the biggest benefits of using an EMI calculator is that it can help you get a realistic idea of your monthly repayments. This is important because your monthly repayments will greatly impact your budget and overall financial health.
- Compare Different Loans Side-by-Side
Another big benefit of using an EMI calculator is that it makes it easy to compare different loans side-by-side. This is important because not all loans are created equal. For example, some loans will have lower interest rates, while others will have longer repayment periods.
- Save Time and Money
Finally, using an EMI calculator can save you both time and money in the long run. This is because it allows you to quickly and easily find the loan that best meets your needs. Additionally, by comparison, shopping, you can make sure that you’re getting the best possible deal on your loan.
Factors Affecting Canara Home Loan EMI
Several factors can affect the EMI on a Canara home loan, including the loan amount, tenure, interest rate, and repayment method.
- The Loan amount–It is the principal amount borrowed from the bank and will generally be the largest factor in determining the EMI. The higher the loan amount, the higher the EMI will be.
- The Tenure of the loan–It is also a significant factor. The longer the tenure, the lower the EMI will be. This is because a longer tenure allows for more time to repay the debt and thus lowers the risk for the borrower.
- The Interest Rate–The higher the interest rate, the higher the EMI. This is because interest accrues on outstanding balances, so a higher rate will lead to more interest accruing over time. Additionally, some lenders may offer preferential interest rates to borrowers with a good credit history.
- Repayment methods–When paying back a home loan, selecting a monthly payment option instead of a fortnightly can lead to an increased EMI amount. This is because a larger payment goes towards the interest with the former.
Benefits Of Using Canara Bank Home Loan Calculator
Utilising a Canara Bank home loan calculator comes with numerous advantages, and Canara Bank’s calculator is one of the most intuitive and extensive ones available. Below are some of the advantages of using this home loan calculator.
Read: Vastu Housing Finance: Unlocking Prosperity
- Extra Monthly Expense–Using the home loan EMI calculator can provide insight into how much of an extra monthly expense you may have with an additional personal loan. It will enable you to determine whether or not you can comfortably manage to pay all of the loan’s EMIs, as well as other monthly costs of living.
- Amount Due–Calculating your monthly loan payment is the simplest way to prepare yourself for the financial responsibility of a home loan. Being unaware of the amount due could result in a financial commitment that you are unprepared to make.
- Reassess The Purchase–If it turns out that the monthly loan repayments on your selected property would be higher than anticipated, it would be prudent to reassess the purchase before moving ahead.
Consider searching for a smaller property within the same vicinity or elsewhere, as this will ease the burden of making monthly repayments over ten years.
Canara Bank Home Loan Emi Calculator For Various Loan Amounts
The Table for Canara Bank Home Loan monthly EMI for various Loan Amounts on the interest rate of 8.55% p.a. is given below.
| Loan Amount | 10 Years | 15 Years | 20 Years |
| 10 Lakh | 12,425 | 9,877 | 8,710 |
| 20 Lakh | 24,851 | 19,753 | 17,420 |
| 30 Lakh | 37,276 | 29,630 | 26,130 |
| 40 Lakh | 49,701 | 39,507 | 34,840 |
| 50 Lakh | 62,127 | 49,384 | 43,549 |
Comparison Of Home Loan With Other Banks
There are a few things to consider when taking out a home loan, such as the interest rate, the length of the loan, and the type of loan. However, one of the most important factors is finding the right bank.
Read: Union Bank of India Home Loan EMI Calculator
Canara Bank vs SBI Bank
Canara Bank offers a home loan at an interest rate of 8.55% for a tenure of 30 years. The processing fee is 0.50% of the loan amount + GST.
SBI Bank offers a home loan at an interest rate of 8.40% for a tenure of 30 years. The processing fee is 0.51% + GST (of which 0.50% is non-refundable).
Canara Bank vs HDFC Bank
The interest rate on Canara Bank’s home loan is 8.55% for a 30-year term. In addition to the processing fee, GST is also charged on the loan amount.
HDFC Bank offers a home loan at an interest rate of 8.30% for 30 years. The processing fee is 1% + GST (of which 0.25% is refundable on cancellation).
Canara Bank vs ICICI Bank
With a 30-year term, Canara Bank offers a home loan at 8.55% interest. A processing fee of 0.50% + GST is added to the loan amount.
ICICI Bank offers a home loan at an interest rate of 8.60% to 9.00% for a tenure period of 30 years. The processing fee charged by ICICI bank is 1% + GST (refundable on cancellation).
Use their house loan calculator to understand your monthly payments if you are considering getting a Canara Bank home loan.
Read: Age Limit for Housing Loan: A Comprehensive Comparison Across Banks
The Canara Bank Housing Loan EMI Calculator is quick, easy to use, and provides accurate information that will help you decide how much borrowing you will need. The calculator can also help you plan your finances so that you have enough money to make impending payments on time.
From locating the greatest interest rates to post-loan services, NoBroker can assist you throughout the house loan process. We’re here to ensure the process is as easy and stress-free as possible while assisting you in obtaining the best price on your mortgage. Contact NoBroker right away to learn more.
FAQ’s
Q1: What is a home loan?
A1: A home loan is a loan taken to purchase a property, usually a house or an apartment. The loan is secured against the property, which means that if you default, the bank can repossess the property. Home loans are usually repaid over 20-30 years.
Q2: How do I apply for a home loan?
A2: You can apply for a home loan online, over the phone, or at a bank. To apply for a home loan online, you will need to fill out an application form and provide some documents, such as your ID, income proof, and address. Onceyou have submitted your application, a bank representative will contact you to discuss your loan options and answer any questions you may have.
Q3: How much can I borrow with a home loan?
A3: The amount you can borrow with a home loan depends on several factors, such as your income, debts, and the value of the property you buy. Generally, banks will lend you up to 80% of the property’s value. For example, if you buy a property worth Rs. 10,00,000, you could borrow up to Rs. 8,00,000 from the bank.
Q4: What is the interest rate on Canara Bank home loans?
A4: Interest rates on home loans vary from bank to bank and depend on several factors, such as your credit score and the type of loan you are taking out. Generally speaking, interest rates on home loans range from 8-10%.
Q5: How long do I have to repay my home loan?
A5: Home loans are usually repaid for 5-30 years.
