Canara Bank Home Loan EMI Calculator
The Canara Bank Home Loan EMI Calculator helps you easily estimate your monthly payments for a home loan.
Canara Bank Home Loan Calculator
Buying your dream home is made easier than ever with Canara Bank’s competitive rate of interest. However, before you make the final decision, you should estimate your loan repayments for better financial planning. Canara Bank’s home loan EMI calculator is the perfect tool for the job.
An EMI calculator is an online financial tool used to determine the monthly payments and the total interest amount payable. You can use it to find the right home loan amount and tenure best fits your monthly budget.
Let us explore more about the Canara Bank home loan EMI calculator, ways to use it, benefits, factors affecting home loan EMIs and much more. Read along.
What Is the Canara Bank Home Loan EMI Calculator?
The EMI calculator is an online financial tool used to determine the monthly payments (EMIs) that you are liable to pay every month throughout the loan tenure. It uses three prime variables, namely the loan amount, rate of interest and tenure, to automatically calculate the equated monthly instalments.
Moreover, the Canara home loan EMI calculator shows you the total interest component payable throughout the loan tenure, along with the total amount of repayment comprising the principal and the interest component of the loan.
How Does EMI Calculation Help In Purchasing a Home?
The Canara Bank Housing Loan EMI Calculator helps you determine your EMIs, i.e., monthly repayments throughout the loan tenure. This helps you to get an idea of the overall affordability of the loan. If the EMI amount seems out of your budget, you can simply increase the loan tenure or reduce the loan amount at your convenience.
Moreover, many EMI calculators show the amortisation schedule or repayment schedule of a chosen home loan. The amortisation schedule refers to the loan showing how the payment is allocated between the principal and the interest component of the loan.
Knowing the repayment schedule beforehand can help you in better financial planning in a more structured format. It provides you with a breakdown of the principal component and interest component of each instalment, which can be used to plan prepayments or balance transfer. You also need to know the details of principal and interest payments to get home loan tax benefits.
How to Use the Canara Bank Home Loan Calculator?
Let’s take a closer look at the steps to use the Canara Bank home loan Calculator:
Step 1: To start with, simply visit our home loan EMI calculator page.
Step 2: Enter the details such as loan amount, tenure and interest rate.
Step 3: You will see the EMI amount along with the total interest component in no time.
How Home Loan EMI Is Calculated?
The Canara Bank home loan EMI calculator uses a specific mathematical formula to compute equated monthly instalments. This formula is as follows:
E = [P x R x (1+R) ^N] / [(1+R) ^N-1]
E = EMI amount
P = Principal amount
R = Rate of interest
N = Loan tenure
This formula allows borrowers to compute their monthly payments based on the loan amount, interest rate, and repayment period.
Let us understand the same using an example:
For example, Ms Rinika is willing to purchase a new apartment in the Greater Kolkata Region and avails a home loan of ₹1.5 crore at 9% p.a. interest rate for a tenure of 30 years.
E = [1,50,00,000 x 9 x (1+9) ^ 30] / [)1+9) ^ 30-1]
EMI (E) = ₹1,20,693
Therefore, Ms Rinika will have to pay an EMI of ₹1,20,693 for the ₹1.5 crore home loan.
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.
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 can largely impact your overall finances.
Compare Multiple Loan Offers
Another big benefit of using the Canara Bank home loan 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
Last, by not least the calculator assists you in calculating your monthly repayments along with the overall interest component in no time without any manual calculations. Therefore, helping you to save your time and costs over the long run.
Factors Affecting Canara Bank Home Loan EMI
Several factors can affect the EMI on a Canara home loan which includes: the loan amount, tenure, interest rate, and repayment method.
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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.
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Loan Tenure:
It is also a significant factor influencing the home loan EMI. The longer the tenure, the lower the EMI will be and vice versa.
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Rate of Interest:
The higher the interest rate, the higher will be the EMI. This is because interest accrues on outstanding balances, so a higher rate will lead to more compounding over time. Additionally, some lenders may offer preferential interest rates to borrowers along with a good credit history.
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Credit Score:
An individual’s credit score can indirectly impact their home loan EMI. An applicant with a higher credit score is likely to get a lower interest rate, thus leading to lower EMIs.
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Processing Fee:
The processing fee levied by the lending institution can also impact the EMI; it is typically a percentage of the loan amount.
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Prepayment:
Making additional part-payments before the end of the loan tenure can help you reduce your monthly EMIs to a larger extent. This is because the outstanding amount leads to a lower EMI. However, please note that some lenders give the option to reduce the tenure while others offer to change the EMI.
Benefits of Using Canara Bank Home Loan Calculator
The Canara bank home loan EMI calculator comes with several advantages; below are some of the advantages of using this home loan calculator:
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No Manual Calculation:
The Canara Bank home loan calculator removes the hassle of manual calculations, thus saving you time and effort.
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Check Multiple EMI Options:
You can tweak the loan amount and tenure to check out various EMI probabilities helping you to choose your preferred EMI option that suits your budget.
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Easy-to-use Interface:
The Canara Bank home loan interest rate calculator is easy to use and comes with a user-friendly interface. This helps you to access the same and get the results in no time.
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Accurate Estimation:
The online tool helps you to get an accurate and error-free estimation of your monthly payments. Simply enter the loan amount, interest rate and loan tenure to compute EMIs.
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Better Financial Planning:
It allows us to determine your home loan EMIs beforehand, which helps in better financial planning and facilitates informed decisions. In case the EMI amount exceeds your expected budget, you can either increase the loan tenure or reduce the loan amount by looking for a different property that fits your budget.
Canara Bank Home Loan EMI Calculator for Various Loan Amounts
The table below shows the EMI of Canara Bank Home Loan for different loan amounts and various tenures, considering 8.55% p.a. as the rate of interest:
| 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 |
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.
Here is the amortisation schedule of a home loan worth ₹20 lakh for a period of 9 years at an 8.55% per annum:
| 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 |
Comparison of Home Loans with Other Banks
When choosing a home loan, it’s essential to compare the offerings from various banks to find the most favourable terms. Let’s compare the home loan offer from Canara Bank with some of the biggest lenders in the country based on multiple factors such as interest rates, loan tenure, and additional charges:
| Bank | Interest Rate | Maximum Loan Tenure | Processing Fee |
|---|---|---|---|
| Canara Bank | 8.40% to 11.75% p.a. | 30 years | 0.50% of loan amount + GST |
| SBI Bank | 8.50% to 9.85% p.a. | 30 years | 0.51% of loan amount + GST (0.50% non-refundable) |
| HDFC Bank | 8.75% p.a. onwards | 30 years | 1% of loan amount + GST (0.25% refundable on cancellation) |
| ICICI Bank | 8.75% p.a. onwards (For pre-approved offers)
9% p.a. onwards (Standard rates) |
30 years | 1% of loan amount + GST (refundable on cancellation) |
Consider checking your Canara Bank home loan eligibility using a Canara Bank home loan eligibility calculator before applying. Each application triggers a hard inquiry, and multiple hard inquiries might have a negative impact on your credit score.
Key Takeaways
Knowing the EMI of your chosen home loan is essential as it is a fixed obligation you have to stick with. The Canara Bank home loan EMI calculator is a convenient tool you can use to pick the perfect amount you can easily pay. Besides EMI calculation, you should check the interest rates, additional charges, eligibility criteria, etc., before you get the loan.
NoBroker is here to support you at every step of the home loan process, from finding the best interest rates to providing post-loan services. Our goal is to make the experience smooth and hassle-free while helping you secure the most favourable home loan deal. Reach out to NoBroker today to learn more.
