Loan amount

₹

Rate of interest (p.a)

%

Loan tenure

Yr

Monthly EMI | ₹ |

Principal amount | ₹ |

Total interest | ₹ |

Total amount | ₹ |

Principal amount

Interest amount

IOB or Indian Overseas Bank was established back in 1937 to facilitate overseas and foreign exchange banking. Over the years, this bank has created several benchmarks in the Indian economy and banking system. It is also the first-ever bank that ventured into personal financing. In 1969, when the Indian financial system underwent a massive transformation through the nationalisation of banks, IOB was one of them.

Presently, IOB is one of the major public sector commercial banks in India. It provides lending services like home loans at an affordable interest rate of 7.45% onwards. Thus, individuals can opt for this financier when planning to buy a flat or house or to construct one. Furthermore, one can calculate the monthly EMI on their home loan by using the IOB home loan calculator to avail suitable housing finance.

- Indian Overseas Bank provides a home loan to both salaried and self-employed. Also, special rates offered to women, senior citizen and NRI borrowers.
- Individuals aged 21 to 60 years can apply for a loan
- For security, the borrower can keep the mortgage of property they are planning to purchase, renovate or construct.
- Loan to Value Ratio is 80%.
- The tenure of the IOB home loan ranges from 5 to 30 years.
- Interest rates range from 7.05% to 7.30%.
- IOB home loan EMI per lakh starts is Rs. 669 (starting price). However, one can calculate the home loan EMI anytime using the IOB home loan calculator 2021.
- The processing fees charges is 0.53% of the loan amount (amounting to a minimum of Rs. 8,900 and a maximum of Rs. 13,350)

The IOB housing loan EMI calculator computes EMIs based on the following formula –

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

Whereby,

- P means the principal loan amount
- R means the interest rate applicable
- N means the tenure length in months

For a better understanding, here is an example of using this formula –

Manav selects a property in Kolkata for purchase and applies for a home loan. After evaluating its market value, IOB notifies him that the approvable loan amount could be Rs. 20 lakh at an interest rate of 8%. Also, he wishes to opt for a repayment tenure of 12 years.

Now, the values to be fetched in the calculator are tabulated below.

Principal (P) | Rs.20,00,000 |

Rate of interest (R) | 8% |

Tenure (N) | 144 |

As per the formula –

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

= [20,00,000 X 8% X (1+8)^144] / [(1+8)^144-1]

= 21,649

As Manav has opted for a tenure of 12 years, his EMI stands at Rs. 21,649. Additionally, the IOB home loan interest rate calculator also displays the total outstanding that Manav has to pay, amounting to Rs. 31,174,56.

When availing a housing loan, individuals need to arrive at a monthly instalment amount that they need to pay throughout their loan tenure. In the case of housing finance, borrowers need to be more cautious than ever as the repayment timeline is significantly longer and the loan amount sizeable.

Here, an IOB home loan EMI calculator comes as a user-friendly online tool that can help compute the EMI amount once the loan metrics are entered. These metrics are the credit amount, interest rate, and tenure. Once individuals enter all three values, a home loan calculator displays an EMI amount based on these entries.

If borrowers find the amount unsuitable, they can adjust the given variants, i.e., the principal amount and the repayment period to arrive at a different monthly payout value.

Home loan EMIs can vary due to the following factors:

- The interest rate applicable to loans is a critical factor determining the EMIs. Lenders provide loan facility after evaluating the financial risk factor. If an applicant has a promising credit history with an excellent score, the default risk becomes lower for financers. Therefore, lenders can offer better rates that reduce the EMIs.
- If individuals select an extended repayment term, they can also bring down that EMI amount effectively. Nonetheless, in such cases, lenders levy higher interest rates to cover their financial risk. So, it increases the overall cost of a loan.
- Furthermore, if applicants can keep the loan amount low, it also helps to cut down instalment amounts.

The Indian overseas bank home loan calculator provides numerous benefits to users –

- Firstly, it helps generate the most accurate result.
- Individuals can estimate the EMI before applying for the loan. So, they can evaluate their fixed obligations and check whether this instalment amount is feasible or not.
- This calculator can also help borrowers keep the payouts within their repayment limit. Thus, it also reduces the default risk.
- This tool also assists with efficient financial management by assessing future expenditures.

So, if applicants need to make an informed borrowing decision, they should use an IOB home loan calculator beforehand. Also, they can analyse their financial capacity when considering an advance facility.

**Que**. What is the maximum tenure of the IOB Home loan?

**Ans**. The maximum tenure of an IOB home loan goes up to 30 years

**Que**. How to apply for an IOB home loan?

**Ans**. A home loan at Indian Overseas Bank can be applied by going to the official IOB website or by visiting the nearest branch to apply for a housing loan.

**Ques**. What is the eligibility for a home loan at IOB?

**Ans**. Self-employed and salaried individuals can apply for a home loan at Indian Overseas Bank.

**Que**. Can family members be added as co-guarantors?

**Ans**. To add co-guarantors from your immediate family, one can apply for a joint IOB home loan.

**Ques**. What happens if the EMI payments are not paid on time?

**Ans**. In the case someone defaults on EMI payments, the bank will levy a penalty.

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