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For any home loan borrower, a higher loan amount sought from IDBI bank will mean a higher EMI amount. The bank offers a minimum home loan amount of Rs. 10 lakhs and the maximum amount is Rs. 10 crores. The bank currently charges an interest rate of 6.95% on home loans.
If the interest rate rises, it will mean an increase in housing loan EMI and this can increase the overall loan cost for a borrower. Since the interest rates offered by the bank are dependent on RLLR or repo linked lending rates, these could go up or come down at any time for floating-rate loans.
Loan tenure or the total period during which a borrower repays the home loan is an important determining factor in EMI calculation. The EMI on a home loan could be lower if a borrower opts for a loan tenure of 20 years versus a loan tenure of 1 year. The rule is that the longer the loan tenure, the lower will be the home loan EMI and vice-versa.
Borrowers can use an online EMI calculator to estimate their home loan EMI across a range of interest rates and loan tenures. The EMI calculator works with the following information for calculating monthly EMI:
- Loan amount
- Loan tenure
- Interest rate
Borrowers must always make sure to do thorough research and compare different interest rates before calculating EMI and applying for an IDBI bank home loan. This can help in better financial planning and management of loan repayment.