IDBI Home Loan Calculator 2021

Owning a home is now a step closer with IDBI Bank home loans. IDBI provides housing finance at affordable interest rates, starting from 7.40% p.a. Individuals can also check several EMI options with the help of the IDBI home loan calculator and select the right one as per their repayment potential.

About IDBI Bank

IDBI or the Industrial Development Bank of India was set up in 1964 as an ancillary of the Reserve Bank of India. Initially, it started working as a financier to the emerging industries in the Indian economy. Several national organisations like NSE, NSDL, EXIM Bank and SIBBI can find their origin in IDBI.

On 21st January 2019, LIC of India also acquired a 51% stake in IDBI. The RBI later clarified IDBI’s re-classification as a private financial organisation for regulatory purposes.

IDBI Home Loan – Key Features

  • IDBI provides a loan to both salaried and self-employed. Also, special rates are provided for women borrowers
    Interest rates range from 7.40% to 8.00%.
  • Tenure of the loan can range from 5 to 30 years.
  • The age group for borrowers is from 22 to 70 years
  • For security, one can keep the mortgage on the property they are planning to buy, renovate or construct.
  • IDBI loan to Value Ratio is 90%.
  • The lowest IDBI home loan EMI starts from ₹ 692 per lakh. However, you can calculate the EMI amount on your loan anytime using the IDBI home loan calculator 2021.

IDBI Home Loan Calculator

When opting for a housing loan, applicants must ensure that they can make timely repayment before applying for it. Therefore, they need to check whether the EMI amount for the selected loan value is feasible for them or not. Here, an EMI calculator can be helpful.

A home loan calculator is a handy computing tool available online. It assists individuals in estimating their monthly instalment based on the credit value, tenure and rate of interest. With an IDBI home loan EMI calculator, applicants can tweak these elemental values to arrive at a suitable EMI amount.

IDBI Home Loan Calculator Formula

The home loan calculator IDBI bank based on the following formula –

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

In this,

  • P represents the loan principal
  • R stands for interest rate
  • N denotes the tenure in months

Given below is an example to help you understand the calculation –

Rajan applied for housing financing with IDBI bank. The lender is ready to sanction a principal amount of Rs. 45,00,000 at an interest rate of 9% per annum. Now, Rajan wishes to pay off this debt within 15 years.

So, the valued provided to the calculator will be –

Principal  Rs. 45,00,000
Interest rate 9%
Tenure 15 years or 180 months

As per the formula mentioned above, the estimated EMI would be –

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

= [45,00,000 X 9% X (1+9%)^180] / [(1+9)^180-1]

= 45,642

Therefore, before confirming this tenure and advance amount, Rajan can assess that his EMIs would be Rs. 45,642. If he considers this amount expensive, he can change either the tenure or principal value in the IDBI home loan calculator 2020 for an affordable option.

What are the Factors that Determine Home Loan EMIs?

  • The rate of interest offered by lenders can affect loan instalment amounts significantly. An expensive interest can result in sizeable EMIs and vice versa.
  • Similarly, if individuals need a higher advance amount, the instalment value eventually increases.
  • Also, when a user opts for extended repayment tenure, he/she can successfully bring down the EMI amount. However, such an option also substantially increase the total cost of a loan.

What are the Advantages of a Home Loan Calculator?

  • These online EMI calculators deliver accurate results, making it easy for users to make an informed decision.
  • Applicants can use the IDBI home loan calculator free of cost.
  • The tool is also user-friendly and works faster.
  • Also, it allows making Emi comparison so that borrowers choose a loan amount as per their repayment capacity.

An IDBI home loan calculator thus aids users in deciding their EMI amount without any hassles. Once individuals are aware of this fixed monthly liability, they can make their other financial decisions accordingly.

IDBI Home Loan Calculator – Frequently Asked Questions (FAQ)

Que. What is the maximum tenure of the IDBI Home loan?
Ans. Most home loans have a minimum tenure of 5 years and a maximum tenure of 30 years.

Que. Are family members eligible to be added as co-guarantors?
Ans. To add co-guarantors from your immediate family, one can apply for a joint home loan. However, friends or colleagues are not eligible to be added as co-debtors.

Ques. What happens when the EMI payments are not paid on time?
Ans. In case EMI payments are not paid on the stipulated date, banks levy a penalty