J&K Bank Home Loan EMI Calculator

EMI, the abbreviated form of Equated Monthly Installments is the fixed monthly outflow that the borrower will incur in order to repay the home loan. The EMI installment is paid over the entire loan term. EMI installment is ascertained using the amount of loan, term of loan and rate of interest. It comprises of two components, the principal and interest.

EMI installment is paid every month over the entire loan term. An EMI schedule is a Performa that makes the customer aware of the total outflow that he/she will bear. It segregates the principal amount from the interest amount and highlights the total cost of the home loan. Also, as the interest portion is highest during the initial years, it shows the division of principal and interest part of the EMI. 

Below is the EMI table of the J&K Bank. The table depicts the amount of EMI payable against each loan principal and loan tenure. As the bank's rate of interest increases with the increase in quantum of loan, the EMI amount is calculated using different interest rates {{J_AND_K_HOME_LOAN_INTEREST_RATE}} p.a.

J&K Bank Home Loan EMI Table

The above table shows the importance of choosing the right loan tenure. As the duration of the home loan increase, the EMI amount payable per month goes on reducing for the same loan amount. A reduced EMI over a longer period of time is easier to pay and therefore the longest term is more preferred among home loan applicants.

However, on the contrary, as the duration of the loan increases, the home loans become more expensive. The break-up of the EMI installment is termed as the Principal to Interest Break-Up ratio. The break-up clearly indicates the portion of the amount settled against principal repayment and interest part.

Listed below is the EMI break-up table. The table shows the amount of money to be repaid on availing a J & K Home Loan of 1 lakh. The break-up is for different durations at rate of interest of 8.75% p.a.

As the duration of the loan increases, the Principal to Interest ratio changes making the home loan more expensive. Thus, home loans are least expensive over shorter durations but the EMI amount payable is high. On the other hand, home loans are most expensive over longer durations but the EMI outflow is lowest per month. Therefore, it is important to choose the ideal loan term that fits the monthly EMI outflow bill.

What is EMI Calculator?

The monthly installment of the EMI is calculated using a mathematical formula, known as the EMI calculator. The EMI can be calculated manually or scientifically using the EMI calculator. The calculation for EMI relies on three parameters - Principal amount, Rate of Interest and Loan tenure.

The mathematical formula for calculating the home loan EMI is:

 [P x R x (1+R)^N] / [(1+R)^N-1]

Where;

P = Principal loan amount

R = Rate of interest

N = Loan tenure in months

Additional Info: Best Home Loan Interest Rates @8.50%

• Salaried and self-employed professionals and non-professionals are eligible for J&K Bank home loan
• Retired employees, NRIs, people engaged in farming and allied activities can apply for a J&K Bank home loan.
• Home loan can be availed for purchase, construction, extension, and renovation of the residential property.
• Home loans issued to salaried and self-employed individuals enjoy 30-year loan tenure.
• Home loan issued to people for other categories can avail loan for 20 years.
• J&K Bank home loan have no foreclosure or prepayment charges.
• Home loan can be applied by joint applicants to enhance loan eligibility.
• Women applicants, whether sole or joint borrower, enjoy a 50% reduction in processing charges.
• The maximum J&K Bank home loan quantum depends upon the purpose of home loan.
• Customers enjoy a moratorium period depending upon the purpose of home loan.
• J&K Bank has a loan margin of 75% on loans above 75 lakh.
• The rate of interest depends upon the quantum of home loan. Home loan upto 30 Lakh is available at 8.75% p.a, Above Rs 30.00 lacs and upto Rs 75.00 Lakhs at 8.75% p.a. and above Rs. 75 Lakhs at 8.75% p.a.
• The lowest EMI of J&K Bank is Rs. 787 per lakh. It is calculated for a 30 year loan term at @ 8.75% p.a.

Additional Info: Also Check LRD Loan

The home loan EMI payable each month is calculated using three variables - loan amount, rate of interest and loan tenure. EMI is grossly affected by a change in any of the three variables.

Principal amount: The EMI amount is directly dependent on the loan amount. The EMI installment will be high for a high loan amount. J&K Bank sanctions home loans depending upon the location and price of the property.

Rate of Interest: The rate of interest is the cost of issuing a home loan. A higher rate of interest will result in a higher EMI value. J&K Bank interest rates increase with the increase in the amount of loan. Home loan up to Rs. 30 Lakhs is available at 8.75% p.a.

Duration of Loan: The total number of years over which the borrower will repay the loan is called the duration of the loan. The maximum loan duration allowed by J&K Bank is 30 years for salaried and self-employed applicants and 20 years for NRI and other applicants. 

However, there are numerous reasons that affect these three basic parameters. These are: 

Job profile: A bank can charge a different rate of interest from different customers depending upon their job profile.

Purpose of Home Loan: The purpose for which the home loan is availed directly impacts the loan quantum and loan tenure.

Credit Score: If the customer has a healthy banking Credit Score, the bank will be eager to strike the deal even at a lower rate of interest than that offered to other applicants.

Existing bank customers: Customers who enjoy a good track record with the bank become their loyal customers. Such customers enjoy better privileges and deals than new and unknown customers.

Additional Info: Also check Pan Number for Banks

As the EMI installment is to be paid monthly over a really long period of time it should neither be too high or too low. The following steps will enable you reach an ideal EMI installment amount:

Calculate the principal amount: Once you decide to apply for a home loan, calculate the exact amount of home loan amount that you will require keeping in mind the margin value. It is better to merge smaller properties than simply relying on a high value home loan. Keep in mind the EMI installment that you will bear for the entire loan term. 

Evaluate your current liabilities: Before applying for a home loan it is important to evaluate and assess you current obligations on a monthly basis. As your home loan EMI will only add to the bill, be sure that you can accommodate it comfortably without taking any undue financial stress.

Know your eligibility: The amount of home loan will depend on the purpose of loan, job profile of the applicant and the loan tenure. So, it is important that you check your Home loan eligibility and fund for the margin money.

Calculate FOIR (Fixed Obligations to Income Ratio): FOIR helps establish the maximum EMI one can pay keeping in mind the current financial standing. As a rule of thumb, EMIs payable on all loans should not be more than 50% of the income.

EMI amount will change with the change in the rate of interest. But existing home loan customers with floating rate charges can do without an EMI change. In such cases, the increase of decrease in the total amount payable to the bank is adjusted by making changes in the tenure of the loan. In cases where it is not possible to completely liquidate the loan before the borrower turns 70, the EMI installment payable every month is increased keeping the loan tenure same.

Additional Info: Also check ICICI Home Loan EMI Calculator

J&K Bank allows its customers to prepay the home loan amount without any additional charge. The interim lump sum payments are adjusted against the outstanding principal amount.  

Upon each lump sum prepayment of the home loan, the outstanding principal balance is reduced. The borrower can either pay the remaining principal outstanding through same EMI over reduced home loan tenure or can request the bank to recalculate the EMI amount and pay the reduced EMI without any change in the loan duration.

Additional Info: Looking for 25 Lakh Home Loan? Check EMI & Apply.