A lot of people have this misconception that if they choose to opt for a Home Loan, they don’t have many options at their disposal with which they can ensure savings. But, it is not true. There are several methods with which individuals can save a substantial amount on their home loan. These methods are choosing a shorter tenure according to your repayment capacity, choosing lower interest rates, choosing Balance Transfer Facility, Prepayment of your Home Loan, etc. But do you know that PNB Home Loan EMI Calculator helps you in estimation of money that you can save in all these methods.
In this article, we will talk about the role of PNB Home Loan Calculator in the Balance Transfer Facility. But before this, it is important for you to understand what exactly is Balance Transfer Facility? Well, with this facility, customers can transfer their outstanding principal balance to some other lender at lower interest rates. So, if you currently have higher interest rates and now switched to lower PNB Home Loan Interest Rates, you can save a lot in this process. In this article, we will tell you about the calculation involved and how much money you can save in this process.
Know your Savings with PNB Home Loan EMI Calculator! !
As we said, PNB Home Loan EMI Calculator helps people to know the amount that they can save with a Balance Transfer facility. Let’s understand this via an example. Suppose an individual who has a 20-year Home Loan of INR 30 lakh. The interest rate on his loan is 9.50% per annum. Now, after paying EMIs for four year (48 EMIs), he wants to opt for PNB Home Loan Interest rate of 7.50% per annum via Balance Transfer facility.
So, let’s see how much money he can save by choosing the Balance Transfer facility. We are showing all the calculations below.
For the loan amount of INR 30 lakh, he must be paying an EMI amount of INR 27,964 and the interest outgo on this amount will be INR 37,11,345.
The overall interest paid till the time of 4 years will be INR 10,97,365 while the outstanding balance at the end of 4 years will be INR 27,55,095.
So, according to this new amount, the new EMI at the PNB Home Loan interest rate of 7.50% per annum will be INR 24,681 and interest outgo will be INR 19,83,638.
So, the total interest will be INR 30,81,003 (10,97,365 + 19,83,638).
So, you can see the estimated EMI savings will be INR 3,283 (27,964 - 24,681) when you decide to choose lower PNB Home Loan Interest Rates. Similar to EMI savings, you can also save in the interest amount which will be INR 7 lakh approximately (37,11345 - 30,81,003).
All of these calculations are done with the help of PNB Home Loan EMI Calculator. Before going for the Balance Transfer facility, it is
For the loan amount of INR 30 lakh, he must be paying an EMI amount of INR 27,964 and the interest outgo on this amount will be INR 37,11,345.
The overall interest paid till the time of 4 years will be INR 10,97,365 while the outstanding balance at the end of 4 years will be INR 27,55,095.
So, according to this new amount, the new EMI at the PNB Home Loan interest rate of 7.50% per annum will be INR 24,681 and interest outgo will be INR 19,83,638. So, the total interest will be INR 30,81,003 (10,97,365 + 19,83,638).
So, you can see the estimated EMI savings will be INR 3,283 (27,964 - 24,681) when you decide to choose lower PNB Home Loan Interest Rates.
Similar to EMI savings, you can also save in the interest amount which will be INR 7 lakh approximately (37,11345 - 30,81,003).
All of these calculations are done with the help of PNB Home Loan EMI Calculator. Before going for the Balance Transfer facility, it is important to put all the details into the tool and know what amount you will save. To use this tool, you just need a few details. These details are Required Loan Amount, PNB Home Loan Interest Rates, and Tenure.
On putting these details into the tool, you will get the EMI amount within a second. Apart from this, you will also get Interest Outgo and Total Payable amount. So, when you are going to choose a home loan for yourself, this is also an important tool to know whether the EMI amount fits within your repayment capacity. The reason behind this: People usually opt for Home Loans for a long period.
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