Bank of India (BOI) is a government-owned commercial bank that started its journey from 1906. Back then, it was founded and controlled by a group of renowned businessmen from Mumbai. Later, in 1969, BOI was nationalised as per the policies of the Government of India.
Over the years, this financial institution has grown significantly and carries sizeable operations internationally. As of March 2019, BOI works via 5316 branches across the country and also operates via its 56 overseas offices.
As a government-backed nationalised financier, BOI also provides home loans at competitive interest rates starting from 6.95% p.a. Therefore, homebuyers can consider this lender to avail housing finance at one of the most affordable rates in this lending market.
Individuals can also use an online BOI home loan EMI calculator and create their repayment strategy as per a suitable EMI amount.
In this article
BOI Home Loan Calculator
As the name suggests, BOI’s EMI calculator for home loans is a simple digital tool that enables users to estimate their monthly instalments. This calculator requires you to enter three components, namely the interest rate, principal value, and repayment term. Once individuals enter these metrics, a BOI home loan calculator 2020 can compute the instalment amount within a few seconds.
Individuals can also assess various EMI options as they tweak the value of tenure or advance amount entered in a home loan calculator. Thus, they can compare and select a suitable amount according to their financial profile and capability.
How Does a BOI Home Loan Calculator work?
Based on the following formula, a BOI housing loan EMI calculator computes monthly instalment amounts –
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
In this formula,
- ‘P’ refers to the approved loan amount
- ‘R’ refers to an applicable interest rate
- ‘N’ refers to the tenure in months
Now, with the help of an example, this formula can be explained easily –
Let’s say Sashi is self-employed and buying a flat. He wants to avail a home loan of Rs. 25 lakh from BOI for 12 years at an interest rate of 7.2% 9.a. His monthly EMI would be calculated as follows.
The values entered in the calculator would be –
|Loan principle or P||Rs. 25,00,000|
|Rate of interest or R||7.2%|
|Tenure in months or N||144 months|
As per the formula –
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
= [25,00,000 X 7.2% X (1+7.2)^144] / [(1+7.2)^144-1]
So, Sashi needs to pay Rs. 25,977 for upcoming 144 months spanning the repayment tenure. Moreover, this BOI housing loan EMI calculator also computes the total repayment liability, amounting to Rs. 37,40,544.
What are the Factors that Influence Home Loan EMIs?
Here are some factors that influence home loan EMIs –
- Interest rates levied on the loan determine the total outstanding amount. So, the rate of interest applicable is a primary factor that can impact loan EMIs remarkably.
- The loan principal weighs proportionately for EMI determination. Therefore, if the credit amount is high, the loan EMIs increase too.
- In terms of tenure, a prolonged timeline can help keep the EMIs low. Nevertheless, individuals must select the tenor carefully as it can result in high-interest accrual as well, thus increasing the total repayment liability.
What are the Benefits of a BOI Home Loan Calculator?
A BOI home loan calculator 2020 is a beneficial tool that can help with a systematic borrowing process –
- The mathematical calculation of home loan EMI may seem difficult to several borrowers. A BOI home loan calculator thus generates result without any hassle.
- Also, individuals can rely on its accurate result and make an informed decision accordingly.
- Applicants can assess EMI suitability beforehand and decide whether the amount is affordable as per their financial capability or not.
- With the help of a BOI calculator, homebuyers can be prepared about their future expenditure, and thus, they can align their other financial decisions accordingly.
Learning about the utility of a BOI home loan EMI calculator has become essential for a streamlined borrowing process. A careful approach to availing high-value funding like home loans can ensure the improved financial health of individuals.