Canara Bank Home Loan Calculator
Getting a dream home is no longer an uphill battle with Canara Bank Home Loan at attractive interest rates. It is imperative to know the EMI amount before taking a home loan so that the budget can be adjusted accordingly. Groww’s Canara Bank Home Loan EMI calculator helps to calculate the accurate monthly EMI amount beforehand.
Canara Bank – A Brief Overview
Canara Bank was established in 1906 with the 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 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.
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 the instalment amount in seconds. Individuals can also tweak these parameters to check which EMI fits their repayment capacity the best.
Canara Bank Home Loan EMI – Key Features
- Canara Bank also provides a loan to self-employed and businessmen to finance the requirements of their business. Some of the key features of availing Canara Bank Home Loan are:
- Canara Bank Home Loans offer a loan tenure from 5 years up to 30 years, and also the lowest EMI offered by the bank is Rs 659 per lakh borrowed.
- Interest rates range from 6.90% – 8.90%
- The lowest interest rate charged by Canara Bank on Home Loan is 6.90% which makes it one of the most popular housing loans in India. You can check the EMI using Groww’s Canara Bank Home Loan calculator anytime.
- The Canara Bank home loan EMI is calculated based on the loan amount, loan tenure and rate of interest.
- Special rates are available for women borrowers
- The Processing Fees of the loan is 0.50% of the loan amount which can be a minimum of Rs. 1,500 and maximum up to ₹ 10,000
Canara Bank Home Loan Calculator Formula
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.
Canara Home Loan Calculator – FAQs
Que. Is the Canara home loan EMI constant or changes with an interest rate change in future?
Ans. Usually, the home loan EMI remains unchanged unless the customer asks for a change and the same is approved by Canara Bank subject to its eligibility conditions
Que. Is there any change in the home loan EMI in case of prepayment?
Ans. Canara Bank provides prepayment without any charges in case of floating rate home loans. The prepayment reduced the outstanding balance of the principal amount on your home. In this case, you can decide to either keep the EMI amount the same and reduce the tenure or reduce the EMI amount and keep tenure the same. You can check the EMO on your home loan anytime by using the Canara home loan calculator.
Que. How accurate is the home loan calculator of Canara?
Ans. The calculator present on this page uses meticulous coding which is programmed to calculate accurate results. Also, make sure that the values entered by you are correct.
Que. What is the use of calculating Canara Bank home loan EMI before taking a loan?
Ans. Calculating the EMI beforehand can help you evaluate the amount you have to pay each month as EMI.