How to calculate Home Loan EMI and Interest: Home loan has become a great convenience for the middle class. With its help they easily fulfill their dream of owning a house. However, if a loan is taken, it has to be repaid. Banks recover this loan as monthly EMI. The longer you take the loan, the smaller your EMI becomes, but its drawback is that you have to pay more interest also.
Generally, after taking a loan, people never calculate how much loan they have taken and how much interest they have to pay in return, etc. But if you calculate it, you will be at a loss. Know here how much interest the bank charges if you take a loan of Rs 40 lakh from SBI for 20 years, 25 years and 30 years.
Interest On Loan For 20 Years Period
According to SBI Home Loan Calculator, if you take a loan of Rs 40 lakh for 20 years, then your monthly EMI at 9.55% interest will be Rs 37,416, which you will have to pay continuously for 20 years, that too when the interest rate is so low. remains the same. If the interest rate increases then your EMI or your loan tenure can be increased. If calculated according to 9.55% interest rate, then you will have to pay Rs 49,79,827 i.e. about Rs 50 lakh as interest on the loan amount and including the principal amount, you will have to pay a total of Rs 89,79,827, which is double the loan amount. There are more than.
What Is The Interest On 25 Year Loan?
If you take a loan of Rs 40,00,000 for 25 years, the EMI will be smaller, but the interest will increase. In such a situation, you will have to pay monthly EMI of Rs 35,087 at 9.55% interest rate and Rs 65,26,098 as interest. Including the principal amount, Rs 1,05,26,098 will have to be paid for a loan of Rs 40 lakh.
Know The Calculation On 30 Year Loan
If a loan of Rs 40,00,000 is taken for 30 years, the EMI will reduce to Rs 33,780. But according to 9.55 percent interest, you will have to pay Rs 81,60,867 as interest in 30 years and if the principal amount is also included in it, then in return for the loan of Rs 40,00,000, the bank will pay you a total of Rs 1,21,000 in 30 years. Will charge Rs 60,867, which will be three times your loan amount.
How To Reduce Interest Burden
If you want to reduce this burden of interest, then first try to take minimum loan from the bank. Keep the loan amount only such that you can repay it in a short period. By keeping the EMI in a shorter period, the EMI may become larger, but the bank will not have to pay much interest. Apart from this, try to finish the loan quickly. Its method is prepayment.
This helps in repaying the loan quickly and also you can save lakhs of rupees paid in interest. The pre-payment amount is deducted from your principal amount. This reduces your principal balance and also affects your EMI. The best way to do this is that whenever you get money collected from somewhere, you keep depositing it in the home loan account.