Home Loan Instalments

To make your job easier we have thought of simplified ways in which the understanding can be more clear and easy for you. For that purpose let us imagine a situation where one particular borrower or a customer opts for Bank of Baroda Home Loan. Now coming to have a clear understanding of his or her installments we should first know the ways through which the installments can be calculated and the terms in which the final amount will be decided. So let us make it a point by answering it in the form of questions and answers for the reader to have a clear view on the type of installments that can be made in relation with that of the home loans. The installments of the home loans are generally paid by the borrower or the customer in the monthly basis scheme to make the process easier.

How can a borrower or customer determine or calculate their loan installments?

Well with the improvements in technology these days, it has made a device that can determine the installments related calculations for the loans with ease. The device is known as an EMI calculator. And when used for home loan installments it can be called a home loan EMI calculator.

How can the borrowers or customers make use of this home loan EMI calculator for their installments?

Well, the software inside a home loan EMI calculator required a few additional inputs from the customers and borrower side. The inputs are nothing but some basic details of the borrowers and the customers such as the home loan details, for example, the rate of interest at which they were offered the home loan, and the amount of loan they would receiving through this home loan, the period of loan tenure that was offered by the bank and agreed by the borrowers, all such details are to be provided by the customer or the borrower for the results to be displayed on the home loan EMI calculator and eventually the final result of the installments will be displayed.

On what mechanism will the home loan EMI calculator work to display the results of the monthly installments that are to be paid by the borrowers and the customers?

Well, the first thing to do is that the Equated monthly installments is abbreviated in the form of EMI. THE EMI takes into consideration the total loan amount or generally known as the principal amount and it also looks into the rate of interest that is to be calculated on the monthly basis through which installments are being made by the borrowers and the customers. The home loan is fixed on the per annual rates and hence if a borrower or customer wants to know the monthly cost, all they have to do is to divide the total cost by 12, and this is done because there are 12 monthly in one year. That is the basic plan on how the home loan EMI calculator works in general.

Now to know about the loan tenure which is one of the main factors to decide the monthly EMIs, first thing that every borrower and the customer should be aware of is that, the loan tenure will vary from one lending institution to another and it is not the same that is offered by every bank. Hence the loan tenure is usually represented in the form of months. For a borrower to calculate the loan tenure in months, all he or she has to do is to multiply the years that were offered as a part of loan tenure by the bank into 12 months. This is how one can know their monthly EMIs.