What is the most basic need of a human? Many will answer food but many people will also answer as a Shelter or a roof over their heads. Soaring real estate prices make it quite difficult for individuals to purchase their home. But there is no need to lose hope. There are several lenders who provide Home Loan to customers at affordable interest rates. Bank of Baroda is one of the leading public sector banks of India that also offers a Home loan at affordable Bank of Baroda Home Loan Interest Rates.
Everyone knows this thing that many people manage to purchase only one home in their whole lifetime. The reason behind it: Home Loans are considered to be high-ticket purchases and people think twice before going for a Home loan. Because of its high-ticket nature, individuals closely look at the Bank of Baroda Home Loan Interest Rates as they are one of the affecting factors towards your repayment. In this article, we will make you understand how Home Loan Interest Rates from Bank of Baroda affect your repayment amount. We will also talk about how the Home loan EMI Calculator functions. Keep reading to know more!
Impact of Bank of Baroda Home Loan Interest Rates on EMI amount
When going for a Home Loan, choosing suitable interest rates is one of the most important tasks for an individual. As we said earlier, Home Loans are considered to be high-ticket purchases which means the amount is generally high and taken for a longer period of 15 to 20 years on average. This period can go up to a maximum of 30 years. So, when you are going to pay the interest for this long, you should try to choose Lower interest rates.
One thing that many people fail to notice that Bank of Baroda Home Loan Interest Rates directly affects your repayment amount or say EMI amount. The higher the interest rates, the higher will be the EMI amount and vice versa. So, if you manage to choose a lower rate, you will need to pay a lower EMI amount as this amount consists of a portion of your principal amount and a portion of the interest amount.
Let’s understand how two different interest rates can make you pay different EMI amounts.
Suppose an individual wants to opt for a 15-year Home Loan of INR 32 lakh. Bank of Baroda Home Loan Interest Rates is 7.15% per annum and 8.30% per annum. Let’s see what will be the EMI amount that an individual has to pay for these two different rates?
On taking the interest rate of 7.15% per annum, the EMI amount would be INR 25,099, and the interest outgo will be INR 28,23,641.
However, when we are considering the interest rate of 8.30% per annum, the individual will need to pay INR 27,367 as the monthly installment which is clearly higher than the previous EMI amount. The interest outgo for this loan amount will be INR 33,67,987.
So, you can see the difference in choosing Bank of Baroda Home Loan Interest Rates for your Home Loan facility.
How to use Bank of Baroda Home Loan EMI Calculator?
You must be thinking how did we manage to make all these calculations on taking different interest rates? Well, your question is pretty valid. The answer to your question is the Bank of Baroda Home Loan EMI Calculator. To know the monthly installments, interest outgo, and total amount payable, you only need to put a few basic details into this amazing tool.
These basic details are Required Home Loan Amount, Interest Rates, and Required Tenure. As soon as you put them into the calculator, you will get the results instantly. Apart from this, the Bank of Baroda Home Loan EMI Calculator will also provide you an Amortization Table with which you can know the interest and principal amount at different stages of your tenure.