Axis Bank is one of the top lenders in India’s home loan space by providing the money for several purposes such as purchase, construction, renovation and extension of homes. But what matters the most is the loan terms and conditions; the loan must come at a lower rate of interest so that you can pay off the Equated Monthly Installment (EMI) with ease. The question, however, is, how will you know the exact EMI? Well, you can use the Axis Bank Home Loan EMI Calculator to do so. Details of it are explained in this post.
Function of the Axis Bank Home Loan EMI Calculator
The calculator works by computing the EMI based on the loan amount, tenure and interest rate. You can also get to know the interest liability over the loan course as the EMI includes both principal and interest. The fact that the calculator is available online makes it easy for you to compute the installments.
Read Out the Factors That Can Impact Your Repayment
Axis Bank Home Loan Interest Rates can impact your repayment greatly. The bank has now shifted its interest rate to an external benchmark i.e. Repo Rate. So, whenever the RBI will change the repo rate, the interest rate will change, unlike the previous MCLR benchmark where the rate used to change once a year. Salaried individuals will have to pay the loan at 8.85%-9.30% per annum. Whereas, self-employed individuals will get the loan at 8.90%-9.50% per annum.
You could see there’s a gap between the lowest and highest limits of the interest rate. This is where you can bargain on. You can use your higher income to get a lower rate deal and reduce the EMI as well as interest outgo.
The second factor is the loan amount which has a direct influence on the loan repayment. Greater the loan amount the more will be the EMI & interest outgo & vice-versa. If you want to reduce the repayment burden, you can pay more towards the downpayment. Usually, the downpayment sum contributes to 10%-25% of the property cost. So, if you have savings that can help you pay beyond this bracket, don’t hesitate and give yourself the chance to ride a smooth repayment journey.
The last, but by no means least, the tenure. It has an interesting bearing on your repayment. Not many pay attention to it and end up cursing themselves by the time the loan tenure is over. They simply go by the comfort of a lower EMI by choosing a very long tenure. With that, they give the license to the lender to deduct massive interest from their pocket. It can be avoided by choosing a relatively shorter tenure that can help accommodate the EMI easily while keeping a lid on the interest repayment.
Can You Pay Off the Loan Before the Original Tenure Using Axis Bank Home Loan EMI Calculator?
Yes, you can. The calculator will open before you the interest and principal repayment you’re likely to make over the course of a loan. You will also get to know the likely outstanding balance every year. This will help you figure out the time by which you can prepay the loan and save on the interest payment.