Well, you have decided to continue your relationship with Allahabad Bank further by applying for a home loan here. You have zeroed in on the property and you think Allahabad Bank can make your home dream come true. It is one of those banks that have introduced home loan pricing based on external benchmarks. This simply means the interest rate will move in tandem with the market rates. As there’s a change in home loan pricing from the internal benchmark of MCLR to the external benchmark of Repo Rate, it has thus become important to check the repayment summary using the Allahabad Bank Home Loan EMI Calculator. Let’s check out here as to how the calculator can help you in your home loan sojourn.
How Does the Allahabad Bank Home Loan EMI Calculator Compute Your Repayment Summary?
The calculator helps to compute the proposed Equated Monthly Installment (EMI) that you’ll pay to Allahabad Bank over the loan tenure. It does so with the help of just three variables – loan amount, tenure and rate of interest. You will also get to see the total interest that you’ll pay through the EMIs.
Allahabad Bank Home Loan Interest Rate 2019 Details
Allahabad Bank Home Loan Interest Rates include a spread portion involving the credit risk premium over the external benchmark rate, which presently stands at 5.40%. Plus, the rates differ based on the loan amount you apply for. Loans upto ₹75 lakh are offered at interest rates ranging from 8.50%-8.90% per annum. Whereas, loans above ₹75 lakh to upto ₹5 crores and above ₹5 crores can be granted at 8.60%-9.05% and 8.70%-9.10%, respectively.
How Will the Allahabad Bank Home Loan Interest Rates Impact Your Repayment?
The interest rates decide to a great extent the kind of repayment journey you will have. You can negotiate on the spread element of the interest rate to reduce the overall repayment burden. A high income and good credit score of 750 and above besides your existing banking relationship can help you avail the loan at lower rates.
Shall You Consider Making Adjustments to Your Loan Amount?
The question may surprise you, but it makes sense to ask the same. There’s no fun applying for a large amount and pay hefty interest in the process. The fact that the home is not financed fully makes for a situation where you can make a down payment of more than what’s required. This will help reduce the loan amount and the interest outgo.
Shall You Tinker with the Loan Tenure?
A home loan is a long-term loan that can run for as long as 30 years. Many just opt for the longest tenure to get the EMI reduced substantially. But what they ignore is the interest they will end up paying to the lender. At the same time, you can’t go with a very short tenure as the EMI can go beyond your reach. So, it’s important to decide on the tenure carefully and strike a balance between the monthly EMI and interest obligations. A carefully selected tenure will help you save and invest for your future.