Central bank offers a minimum home loan amount of Rs. 15 lakhs and the maximum amount is Rs. 10 crores with an interest rate of 6.85%. In case the interest rate rises, a home loan borrower may have to pay higher EMI and this can increase the financial burden for a borrower. Interest rates can fluctuate depending on market conditions and as per rates announced by the central bank.
EMI calculation also depends on the total loan tenure which is the total period available to the borrower for making the loan repayment. Home loan EMI can be lower if a borrower chooses a longer loan tenure as compared to a loan tenure of few years.
How to check Central bank EMI?
Borrowers can easily check the Central bank EMI that will be payable after borrowing a home loan. This can be done by using an online EMI calculator as it provides different EMI numbers using a range of interest rates and loan tenures. Some of the important information used for calculating EMI using an online calculator is:
- Loan amount
- Loan tenure
- Interest rate
Why is EMI calculation important?
It is important to check the prevailing interest rates before calculating EMI and applying for a home loan with a Central bank. This allows for better financial planning and easier loan repayment in the long run. Central Bank home loan interest rates change from time to time. With an EMI calculator, a borrower can calculate changing EMI obligations based on changing interest rates.