Canara Bank was established in 1906 with an initial name of Canara Bank Hindu Permanent Fund. Its first office was located in Mangalore. Later, during the nationalisation drive for banks, the Government of India acquired and renamed it to Canara Bank.
Presently, it is headquartered in Bangalore with 10,403 branches across the country. The latest merger of the Syndicate Bank with the Canara Bank in April 2020 also made the latter the fourth largest bank in the country.
Considering its reliable lending history, individuals can apply for a home loan with Canara Bank to extend, improve, construct or buy their residential property. They can also assess their plausible EMIs for home loan repayment with a Canara Bank home loan calculator.
In this article
What is a Home Loan Calculator?
Loan repayment via EMIs involves various mathematical calculations, which applicants may find challenging to comprehend. They can thus utilise an online home loan calculator to estimate the EMIs accurately.
Once individuals provide the calculator with advance details such as interest rates, loan value, and repayment period, a Canara Bank home loan EMI calculator computes instalment amount in seconds. Individuals can also tweak these parameters to check which EMI fits their repayment capacity the best.
What is the Working Process of a Canara Bank Home Loan Calculator?
The Canara Bank housing loan EMI calculator determines instalment amounts with the help of a set mathematical formula. As per this formula,
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
- N denotes the number of times a borrower needs to pay instalments throughout the tenure
- P denotes the amount individuals plan to avail
- R denotes the interest rate levied by a lender
Such calculation can be easier to conclude with the help of the following example.
Rakesh decides to procure a housing loan from Canara Bank for 20 years. The bank approves Rs. 28,00,000 as home loan at an interest rate of 8% p.a.
Here, the values to be entered in the calculator are –
|P or Loan principal||Rs. 28,00,000|
|R or Rate of interest||8%|
|N or tenure||240 months|
Now, EMI calculation as per the formula will be –
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
= [28,00,000 X 8% X (1+8)^240] / [(1+8)^240-1]
So, if Rakesh thinks Rs. 23,420 per month is feasible for him, he can apply up for the loan facility. Alongside, the Canara Bank home loan calculator 2020 also shows the total repayment liability of Rakesh by the tenor’s end amounting to Rs. 56,20,877 in total.
What are the Factors that Affect Home Loan EMIs?
When borrowing a housing loan, individuals should be aware of the factors that can affect loan EMIs –
- The bank imposes interest rates on credit products as a cost of the service. These rates contribute significantly to the total loan liability, thus impacting the EMIs proportionately. One should thus look for interest rates that can keep the EMIs affordable.
- Similarly, if individuals require a high loan value, they also need to pay higher monthly instalments.
- Nonetheless, if borrowers extend their loan tenure, they can also lower their EMIs. However, they need to understand that prolonged repayment tenure also accrues a high interest and decide accordingly.
What are the Benefits of a Canara Bank Home Loan Calculator?
Borrowers can utilise the following benefits when assessing their EMIs with a Canara Bank home loan calculator –
- This tool helps aspiring homebuyers in complicated borrowing calculation and computes EMIs accurately.
- Canara Bank housing loan calculator is designed with a simple interface that is easy to use for everyone.
- It provides an idea about the upcoming additional costs so that borrowers can plan their finances accordingly.
- This tool also assists in managing financial decisions by serving with several probable EMI options as per the change in loan value or tenure input.
A Canara Bank home loan calculator thus aids in making a suitable financial decision when it comes to housing finance. It helps approach the borrowing decision systematically, thus enabling users to make the most of their financing capacities.