Federal Bank Home Loan EMI Calculator

Federal Bank has been providing its service to the nation since the year 1931. The bank offers different kinds of customers with different types of home loans under varied eligibility criteria. These home loans can be repaid through monthly EMIs.

You can also calculate the amount of EMI you will have to pay to the Federal Bank each month after borrowing the home loan. You will need to use the Federal Bank home loan calculator.

Here is everything you need to know about the Federal Bank Home Loan EMI Calculator.

Meaning of the Federal Bank Housing Loan EMI Calculator

The Federal Bank home loan calculator is an automatic tool with a preprogrammed formula box that will instantly show you how much the EMI is and how much interest would have been incurred over the principal amount in the given tenure. The tool can be used by anyone who has access to the internet so they can estimate what their monthly EMI would be. 

You could also use this as a tool of comparison between different values and tenures to know what amount would suit you the most. 

How Does the Federal Bank Home Loan EMI Calculator Work?

There are three basic factors that can influence the EMI amount of the Federal Bank home loan they are:

1. The Principal amount
2. The Tenure of the loan
3. The Rate of interest

Based on these three factors, the EMI amount and the interest amount of the borrowed, the calculations are made. The calculator, too, requires these three small details in order to calculate the EMI. Based on these sets of information, the calculator can give you accurate answers. There is a formula box that the calculator uses, and it is explained below.

The Formula that the Calculator Uses:

[P x R x (1+R)^N]/[(1+R)^N-1]

P - The Loan that you want to borrow from the Federal Bank.

R - The rate of interest that Federal Bank is offering you for the home loan.

N - This will be the tenure that you want to repay the loan.

An Example of How to Use the Formula

Mr Raj wants to take out a home loan in the month of July 2022 from the Federal Bank. He wants a home loan of Rs. 48 lakhs. The bank gives him a rate of interest of 6.9%, and Raj chooses to repay the loan over a tenure of 16 years.

Therefore, the details of the home loan are as follows:

P = Rs. 48 lakhs

R = 6.9%

N = 16 Years

EMI = Rs. 41,354

An Amortization of the Home Loan of Raj

Here is an example to show the breakeven values of principal and interest of the home loan that Mr Raj has taken out from the Federal Bank as a home loan:

How to Use the Federal Bank Home Loan Interest Rate Calculator?

Using the Federal Bank home loan calculator is simple and easy. Anyone can use this calculator with little to no expertise or technical knowledge, the steps to use the calculator are mentioned below:

Step 1

You will have to provide the amount you want for a home loan from Federal Bank.

Step 2

You would then be asked to enter the rate of interest that the bank is offering you.

Step 3

You will finally have to enter the tenure that you want to repay.

After these details have been entered, your EMI will automatically be displayed to you within seconds.

How Will the Federal Bank Housing Loan Calculator Help You?

There are several reasons how Groww's Federal Bank home loan calculator can help you, and some of them are:

1. It can be used for automated assistance.
2. You will not have to deal with human errors during the manual method of calculations.
3. The calculator can be used as a tool of comparison between different tenures and principal amounts to know what is the best scheme to choose from the bank.
4. You can use the calculator at no cost and as many times as you want to.
5. This calculator is an easy way to estimate the EMI amount beforehand and make decisions regarding finances.
6. You can also know your EMI amount and interest before even applying to the bank to know if this is the right choice you are making.