Indusind Bank Home Loan EMI Calculator

The fact that real estate prices all over the country are rising every second is not news to anyone. This has made affording a home almost impossible for the struggling sections of society. Banks are out to offer home loans to anyone who might take them, and many individuals do. Well, if you’re going into a home loan without the assistance of the Indusind Bank Home Loan EMI Calculator, you are seriously losing out.

In this article, we will learn what an EMI calculator is and how the gears within in turn. Further, we will go over a few points talking about its benefits. Finally, we will discuss the EMI’s major determinants and compare some home loan offers.

What is the Indusind Bank Home Loan Calculator?

At face value, the term calculator might seem redundant to many, but this home loan calculator is much more. It doesn’t look like your ordinary device with buttons and mathematical functions.

This calculator is used to check EMI or Equated Monthly Instalments. An EMI is an amount borrowers must pay back to the lender each month. It comprises segregated parts of the interest and principal amount.

Applying for a home loan is as simple as filling up a form and submitting it at the bank. The main area of concern is the EMI that the bank will ask for. That’s where the Indusind Bank home loan EMI calculator comes in.

How Does this Calculator Work?

Anyone can access this home loan calculator for free if they visit the portal. Once there, the calculator will look like the image displayed below.

After logging in, visitors can see three interactive options:

• Principal Amount: This is the amount asked for by the borrower.
• Rate of Interest: This field represents the rate at which the lender agrees to give out the loan.
• Tenure: This field represents the years the borrower has to repay the loan.

The above image shows a loan worth 10,00,000 being taken out for ten years at 8.80% interest. Once you hit calculate, the following result appears.

As you can see, the resultant EMI is 12,559 for ten years (120 months). The calculator also shows the Principal, Interest and Total Amount Payable.

How using the Indusind Bank Housing Loan EMI Calculator can Help You?

An EMI is part and parcel of every level-payment loan. This amount is chargeable every month until the tenure expires. While buying a home, we know the price and amount of down payment. This leaves us with the principal amount for a home loan. The lender decides the rate of interest which is based on the norms set by the Reserve Bank of India.

The third field the calculator allows us to alter is the tenure. This is where it truly helps out applicants. The tenure is determinant of the EMI. The EMI needs to be an amount that the applicant is comfortable paying every month until the tenure runs out. So this tool allows users to quickly check alternative tenures while applying for home loans. Let’s see a few scenarios.

In the above scenario, a loan for 10,00,00 is being borrowed for ten years at 8.80% interest per annum. Therefore, the EMI comes up to 12,559. Additionally, the Principal Amount is 10,00,000, whereas the Interest Amount is 5,07,152. As a result, the Total Amount Payable is 15,07,152.

If the applicant wants to opt for a lower EMI, they can increase the tenure. Let’s see what that does.

The same amount is drawn out for double the duration in the above scenario. At the same time, the rate of interest remains unchanged. This changes things quite a bit.

The resultant EMI is 8,869. Additionally, the Principal Amount is 10,00,000, but the Interest Amount is 11,28,569 now. This results in a new Total Amount Payable of 21,28,569.

We have learned the following:

• EMI and Tenure are inversely proportional.
• Interest Amount and Tenure are directly proportional. 

Hence, the Total Amount Payable goes up with the Tenure.

What is an Amortisation Schedule, and Why Do We Need It?

An Amortisation Schedule is a very important document that helps home loan applicants see a detailed breakdown of their payments towards the loan. As stated, every EMI payment is split up into principal and interest payments. This document helps applicants see how much of each they have paid.

In the above image, we can see the following:

• Year: This value signifies the year in question.
• Principal: This value shows the total payments made towards the principal in a particular month.
• Interest: This value shows the total payments made towards the interest in a particular month.
• Principal+Interest=EMI: This value shows the EMI paid during a month.
• Balance to be Paid: This value shares the remaining amount to be paid.

Banks can share yearly or monthly Amortisation Schedules, and customers can ask for either one or both.

Why Should You Use the Indusind Bank Home Loan EMI Calculator?

• Free of cost: Accessing or using this calculator costs absolutely nothing. All you need to do is log onto the portak and have access to the data pertaining to the home loan.

• Always right: Calculators are used to omit human errors, and this one is no different. You will get accurate results if you enter the correct data. These calculations are complete, and doing them on your own may lead to errors.

• Easy to use: Anyone with basic computer knowledge can use this tool.

Factors that can Alter the EMI

As stated, EMIs are a part of all home loans, and according to our discussion, tenure is a major factor behind it. However, some more factors can alter it.

• Interest rate: The interest is a charge levied by the bank to lend out the desired amount. Although the RBI governs this number, banks can also alter them slightly. The lower the rate of interest, the lower the EMI.

• Tenure: We have already learnt that EMI and Tenure are inversely proportional.

• Down Payment: Buying a home involves making a down payment of at least 20%. The principal amount is the remaining value. However, you can further reduce the principal amount by making a higher down payment.

• Partial Payments: Every lender allows borrowers to make partial payments towards the principal amount. However, this can sometimes be chargeable.

• Lenders: The market has numerous lenders who offer a plethora of services at variable prices. In the spirit of competition, they often knock down things like the rate of interest and processing fees. Alternatively, lenders also have the choice to switch lenders mid-loan.

Using the Indusind Bank Home Loan Calculator for Different Amounts and Tenures

Homes can vary in price depending on location, size, style, and much more. Hence, home loans are also drawn out for varying amounts. Let’s see how the EMI changes with different amounts and tenures.

As the above table illustrates, we can see the EMI going down with a rise in tenure. However, we must also remember that the total interest also rises with tenure, which raises the total amount payable. Using the Indusind Bank home loan EMI calculator, we can quickly check multiple tenures and make a decision.

Comparing Home Loans 

Since the Indian market offers so many choices, it is easy to get confused and rush towards a random option. But it is always advisable to take your time and weigh out all the pros and cons equally. So here’s a brief overview showcasing some popular lenders and their offerings.

Whether you wish to go with a bank or NBFC, comparing the offers will always get you the best deal.

Home loans help us buy a home and start living in it by allowing us to pay the money over time. EMIs carry out this function, an amount we must pay back to the bank each month. Setting up a comfortable EMI is a must to avoid future hassles.

Using the Indusind Bank home loan EMI Calculator, you can check how the EMI behaves with different tenures. However, you must keep an eye on the interest as well. As for selecting a home, head over to NoBroker and browse through the most options at any location.