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.
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]
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.
|Rate of interest (R)||8%|
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]
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 Indian overseas bank home loan calculator provides numerous benefits to users –
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.