With more than 120 million customers and a business valuation of 160 billion US dollars, Union Bank of India is counted among the top financial institutions in India. After 1st April 2020, it amalgamated with Andhra Bank and Corporation Bank as per the government’s policy regarding bank mergers.

After this merger, Union Bank operates via 9500 branches approximately. Among these, four are overseas, situated in Antwerp, Dubai, Sydney, and Hong Kong. The bank also operates in the United Kingdom through its ancillary, Union Bank of India (UK).

Among the many funding options, the bank also provides a home loan facility of up to Rs. 30 lakh at annual interest rates of 6.70% and above. So, aspiring homebuyers can use it in a Union Bank home loan EMI calculator to assess their instalment amount.

In this article

**Union Bank Home Loan Calculator**

Home loan borrowers need to pay monthly instalments as EMIs towards loan repayment until the advance liability is completely paid. The calculations can, however, be tough to conclude due to various determining factors.

Nonetheless, if borrowers use Union Bank housing loan EMI calculator, they do not require performing any manual calculation for EMI assessment. They only need to enter their loan details, like the loan amount and tenure opted, to this digital tool that computes the instalment amount instantly.

**How Does a Union Bank Home Loan EMI Calculator Work?**

The UBI Bank home loan EMI calculator operates based on the following formula –

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

Here,

- R stands for interest rate
- N represents the tenure in months
- P denotes the loan amount

Now, take a look at the following example to understand the working of the calculator as per the given formula –

Ayaan applied for a housing loan with Union Bank. After assessing the market value and Ayaan’s eligibility, the bank decides to approve a loan amount of Rs. 40,00,000 at an interest rate of 7.5% p.a. Also, the tenure opted for is 22 years.

The entries to the calculator would thus be as follows –

Principal |
Rs. 40,00,000 |

Interest rate |
7.5% |

Tenure |
264 |

Now, based on the formula –

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

= [40,00,000 X 7.5% X (1+7.5%)^264] / [(1+7.5%)^264-1]

= 30,980

Hence, by using Union Bank home loan EMI calculator, Ayaan can estimate before confirming his loan that he needs to pay Rs. 30,980 as EMI**. **He can thus make a decision of availing credit based on this information.

**What are the Factors that Influence Home Loan EMIs?**

Here are some components that determine home loan EMIs –

- If the rate of interest is expensive, it results in a higher EMI amount. Therefore, the monthly payout automatically rises. One can thus look for the lowest rates to keep EMIs affordable.
- Also, a change in the amount of loan proportionately changes the EMI too.
- Moreover, by opting for a long tenure for repayment, it is possible to keep the monthly instalment amount affordable. However, it also makes loan repayment costly in the long run.

**What are the Advantages of a Union Bank Home Loan Calculator?**

- Individuals can use this loan EMI calculator free of cost.
- It generates error-free result so individuals can depend on its accuracy when making their borrowing decision.
- Moreover, it gives an estimation of upcoming expenses. Thus, individuals plan to manage their monthly obligations accordingly.

Obtaining a suitable loan amount as per one’s repayment capacity requires thoughtful and calculative planning. A Union Bank home loan EMI calculator thus makes this computing process hassle-free.