Home Loan EMI Calculator

Due to steady increase in real estate prices, it is becoming more and more difficult for many Indians to buy their dream home. Nonetheless, Banks can provide home loan facilities for such individuals and make their dreams come true by funding up to 80% of the property cost. 

Taking a home loan and repaying requires keeping a serious track of personal savings, expenses, and investments. Tools like home loan EMI calculators have made everyday financial management more convenient. In this day and age, EMI calculators have become one of the essential tools for financial planning. 

In this blog, we will discuss the Axis Bank home loan EMI calculator, how to use it to manage your finances efficiently, and others.

A home loan is an amount an individual can borrow from a financial institution if he/she matches the eligibility criteria. The purpose of taking this loan is to buy a home (new or a resale one), construct, renovate, or extend an existing home. Banks offer home loans for long tenures, generally with large fund amounts and economical interest rates. One has to pay these loans through EMI or Equated Monthly Instalments. 

Axis Bank is India’s third largest private sector bank that caters to diverse needs of its customers. One of its biggest services is providing home loans. Axis Bank home loans start at Rs. 3,00,000 and they can go up to Rs. 5 crore. It offers a floating interest rate of 8.75% to 9.15% and a fixed interest rate of 14%.  

With the help of Axis Bank Home Loan EMI calculator, you can calculate quick and accurate EMI amounts, total interest, and total amount to be paid. Keep reading to learn how this tool can improve your financial strategy.

If you want to learn how the Axis Bank loan EMI calculator works you have to take a look at the formula it uses to generate the results. 

This is the formula - 

EMI = [P x R x (1+R)^N]/[(1+R)^ (N-1)] 

In this formula: 

Now, let us see an actual scenario to understand it better: 

A borrower is taking a home loan of Rs. 50 lakhs at an interest rate of 8.70% p.a. or 0.69% per month. The loan tenure is 5 years (60 months). The equation would read like this: 

EMI = [50,00,000 x 0.69% x (1 + 0.69%)^60]/[(1 + 0.69%)^ (60 - 1)] = Rs. 1,03,065 

The borrower has to pay Rs. 1,03,065 per month for 5 years to repay his/her home loan. The Axis Bank home loan interest rate calculator also shows the total interest (Rs. 11,83,918) and total amount he/has to pay (Rs. 61,83,918). You can guess how time-consuming and prone to errors it can be to count manually using this formula. So, it is wise to use this handy tool and get the numbers accurately. 

If you will repay the loan at a fixed rate of interest you have to pay the same EMI throughout the tenure. However, the amount going towards the principal and the interest would be different. The process of calculating these amounts is amortisation. 

Here is the table that shows the first 12 months of the amortisation schedule of the borrower we discussed above: 

With this table, you can see how gradually the interest decreases as the loan amortises. During home loan repayment your payment towards principal increases and it decreases towards interest.

As home loans are one of the best ways to buy a property many people plan and prepare for years to get it. In this phase, they should also consider scenarios where something happens to the borrower and loan repayment falters. It would pass the liabilities on to the family members. 

To counter and prepare for such scenarios people choose term insurance or home loan insurance. However, Axis Bank does not have a term insurance plan. Their home loan insurance cover can provide all the protection you need during any emergency and put your family out of danger.   

Here are the reasons why you should opt for a home loan insurance cover: 

Death of the sole earner of the family can mean the family has to bear the onus of repaying a home loan. Failure to repay this loan will result in the lender acquiring and auctioning the house. 

Axis Bank home loan insurance cover will not let that happen. If a breadwinner dies, the insurer will pay the outstanding loan to the lender. This will protect the family from losing the roof over their heads. 

If a loan bearer dies, the lender can seize his/her assets such as investments and savings to repay the outstanding value. Without insurance, therefore, the family can still manage to save the house but have to lose their valuables. 

A home loan insurance will, in such scenarios, help the family pay the outstanding amount. It will allow the family to keep their assets intact. 

This insurance policy is structured like term insurance, and the coverage amount is specifically tailored to pay off the remaining balance of the home loan if a loan bearer cannot repay due to unfortunate events. Thus, its premium is generally affordable. 

However, if you find it unaffordable, you can add it to the loan amount and pay it in easy instalments. 

Tax benefits are available under Section 80C of the Income Tax Act. 

The biggest benefit of having this home loan insurance cover is the mental peace it offers. You as a  loan applicant can stay content with the knowledge that whatever happens to you, your family will not have to face liability.

Using the Axis Bank home loan EMI calculator comes with a lot of perks. Here is a list of advantages you can expect from this financial management tool: 

Using the ACKO Axis bank home loan EMI calculator does not require any financial expertise. To compute your monthly home loan instalments you only have to visit the official website and navigate to the calculator page.

The most intriguing aspect of this tool is that it provides personalised results, allowing you to assess your affordability for the chosen home loan. By inputting the repayment tenure, loan amount, and interest rate, you can tailor these parameters to your liking and receive an immediate and accurate estimation.

Furthermore, the calculator permits unlimited adjustments to compare various results and instalment options, ensuring you find the perfect fit for your budget and financial objectives. You can iterate through the calculation until you are satisfied with the numbers that align seamlessly with your financial goals.

The Axis Bank home loan EMI calculator serves as a valuable tool for anyone considering applying for a home loan. Its user-friendly interface and helpful features have proven beneficial for numerous potential borrowers. 

Therefore, take a moment and try using the ACKO EMI calculator today. Use this tool to determine your monthly instalments accurately, and choose a home loan plan that suits your financial situation and goals.