Bank of Baroda Home Loan EMI Calculator

Bank of Baroda is a top-ranking public sector bank of India. They have several retail lending schemes of which home loan has gained immense popularity. The variety of purposes for which the home loan is provided is almost customized to the borrower's need. For turning your dream to own a home into reality, the best option would be Bank of Baroda Home Loans.

The Home Loan EMI is calculated using the mathematical formula EMI Amount = [P x R x (1+R)^N]/[(1+R)^N-1] where 

EMI is the Equated Monthly Instalment

P is the Principal

R is the rate of interest

N is the tenure

The EMI is calculated considering the rate of interest on reducing balance. Every time the principal reduces, the interest will also reduce to that extent. That is why most borrowers opt for a higher tenure initially make periodical prepayments to reduce the interest cost. With the EMI calculation, we will also be able to know the total interest payable towards the end of the tenure using the above mathematical formula.

Know the interest cost to decide whether availing of the home loan is worthwhile using the Home Loan EMI Calculator. Also, evaluate your repayment capacity by arriving at the EMI amount for a particular amount using the Bank of Baroda Home Loan EMI Calculator.

Know in detail: Simple Interest Formula Calculation.

Evaluating your repayment capacity before opting for a home loan is mandatory if you want to stay away from future financial stress. If you already have other existing loans and credit card dues that must be provided for from your monthly income, you should think twice before going for this high-end, extended tenure loan. Assess your funds’ position to ensure that you will be able to take the additional burden that will remain for the long term. Else, you will land up in a financial mess. You can use the Bank of Baroda Home Loan EMI Calculator available on the bank's website or MyMoneyMantra. Follow some simple steps to use the BOB Home Loan EMI Calculator.

• Access the official website of the bank www.bankofbaroda.com
• Go to the loans option and choose a home loan.
• The EMI Calculator Home Loan Bank of Baroda is available under the home loans option.
• Provide the three variants, i.e., loan amount, interest and tenure. The EMI will be calculated immediately.

You can use the BOB Home Loan EMI Calculator several times until you are sure that the EMI will fit your pocket.

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EMI is the monthly repayment towards any loan that must be consistently paid until the end of the tenure. It comprises interest as well as the principal component. Assessing your repayment capacity to make the loan repayment regularly is crucial if you will have to keep away from financial complications. The best way to estimate the EMI that fits your affordability is by using the Bank of Baroda Home Loan EMI Calculator. The benefits of using the EMI Calculator Home Loan Bank of Baroda are:

• The BOB Home Loan EMI calculator is convenient, simple and easy to use. Even an individual with very little technical knowledge can use the calculator. 
• Manual calculations can give only approximate values, and there is a high scope of errors, and so you cannot entirely depend on the value arrived. Whereas you can be sure of 100% accuracy using the EMI Calculator and without any doubt plan your budget with the EMI arrived at for the loan amount you intend to borrow.
• Manual calculation of EMI by applying the formula can take ages and is confusing as well. The EMI calculator does the calculation with such great speed that the result is seen in a jiffy.
• You can use the calculator multiple times till you arrive at the EMI value that satisfies you.
• The amortization chart that you can get with the EMI calculator shows how the ratio of appropriation of interest and principal out of the EMI as time progresses.

You can also use Loan Prepayment Calculator to find out how much you will save on interest and how it affects your Loan EMI.

Drawing a budget plan is essential when you are heading towards a long term commitment for a big loan such as a home loan. It would help if you also kept in mind that bearing the commitment for the long term without a single missout is not that easy. You will not be able to predict future financial emergencies. The prudence lies in evaluating the repayment capacity considering such emergencies if you have to maintain financial stability.

Using the Bank of Baroda Home Loan EMI calculator will give you an idea of the EMI for the loan amount you intend to borrow. If it is within the evaluated amount, you can go ahead to apply for the loan amount. Alternatively, you can use the calculator multiple times by varying the loan amount and tenure until you arrive at an EMI that fits your evaluation. By doing so, you can approach the bank with the right loan amount and tenure to reduce the turnaround time for the loan approval.

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Estimating the budget-how is it done, and what are the factors that have to be considered? To draw the estimate, you will have first to consolidate the monthly expenses that you will have to provide with your monthly income. If you are a salaried person, the estimation will be easier as the income will be fixed unless you get a hike or any additional incentive. But in the case of the self-employed, the monthly turnover depends on the sales or services for the particular month. In that case, the average income has to be considered to draw the estimate.

After consolidating the monthly expenses that include the mandatory bills payment, the existing EMIs and credit card dues, if you have Credit Cards, you should then arrive at the EMI for the amount you intend to borrow. The residual income after providing for the proposed EMI should be between 40 to 50% of your gross monthly income. This is the EMI that will fit into your budget.

It would help if you used the EMI calculator various times by changing the loan amount and tenure till you arrive at the EMI that fits your budget. By doing so, you will have a 40 to 50% buffer to take care of any unforeseen expenses that might crop up in the future so that the repayment of the loan will not be interrupted.

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Bank of Baroda Home Loan EMI depends on various factors. If your eligibility is ascertained, you can go ahead to apply for a home loan to fulfil your dream of owning a home of your choice. But it would help if you kept in mind that there are various factors that affect your home loan EMI. The factors are:

Loan amount: The loan amount is the principal amount you intend to borrow. This will depend on the value of the property, your repayment capacity and your Credit Score. If you opt for a higher amount, the EMI will be higher and vice versa.

Interest: This is the main factor that affects the home loan EMI. If you opt for a fixed rate of interest, then the EMI will remain constant till the reset is done, which again depends on the lender. For individuals with fluctuating income, a floating rate of interest is a better option as the rate of interest is likely to change as and when RBI announces changes in the BOB Home Loan Interest Rates. A downward change is welcome as it will reduce the EMI, whereas when the interest is higher, the EMI will also be higher. Some of the lenders provide an option of changing the tenure and keeping the EMI constant if it works for you.

Tenure: The repayment period also plays a crucial role in deciding the EMI. The longer the period, the lower will be the EMI but with an increase in the burden on the overall cost of the loan. It is always better to choose a lower tenure if you can afford a higher EMI. Else, you can make periodical prepayments whenever you have surplus funds to bring down the tenure and save on the interest cost. 

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The EMI calculator can give us the EMI as well as the overall interest that will be payable for the tenure opted for. It also gives us a break up of the interest and principal apportionment and indicates the progress of the interest with time. But there is certain information that can be obtained only by contacting the loan provider, and the calculator cannot tell you. 

Other than the interest charged on the loan amount, there are other charges like the processing charges that are collected at the time of accepting the application, prepayment charges for periodical prepayments made to the loan, foreclosure charges for closing the loan account before maturity, delay penalties for delayed EMI, EMI return charges for every EMI missout. These charges also hike up the overall cost of the loan. So, while you are shopping for the best deal in terms of rate of interest, you should also make enquiries about the charges mentioned above to compare the overall cost before choosing the best deal.

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