Central bank home loan EMI could change depending on an increase or decrease in interest rates that are periodically announced by the bank. If you have opted for a fixed rate home loan, then your home loan EMI remains constant throughout the loan tenure. On the other hand, if you have taken a home loan with floating interest rates, then the EMI changes as per the external increase or decrease in home loan interest rates. 

What are the factors that affect Central Bank home loan EMI?

Home Loan EMI can generally be calculated using an online EMI calculator. This calculator considers factors such as loan amount, interest rate and loan tenure. 

  1. Loan Amount - Applying for a higher home loan amount from a Central bank means that you have to pay a higher EMI. The bank offers a minimum home loan of Rs. 15 lakhs and a maximum of Rs. 10 crores.
  2. Interest Rate – If the interest rate offered by Central Bank for housing loan increases, the EMI which also increase. This increases the total cost of the loan. Currently, the interest rate on home loan offered by the bank starts at 7.30%. It is important to do market research and rate comparison by calculating EMI obligations before applying for a home loan.
  3. Loan Tenure - This is the total period during which you must repay your home loan taken from Central Bank. Generally, home loan tenures are longer, so your EMI is spread across a longer period. Depending on the loan amount and interest rates, a longer tenure could mean lower EMIs.

If you are considering borrowing a home loan from Central Bank, always ensure to calculate your EMI before applying for a loan. This will help you to plan your future finances and check your affordability levels before taking up any debt.