Federal Home Loan Calculator 2020

Last Updated 17th Jan 2020

Federal Bank home loan EMI per Rs lakh is Rs. 772, which is one of the lowest EMI offered by banks. Housing loan EMI in Federal Bank is calculated based on loan amount, loan tenure and interest rate. Check Best Offers

Federal Home Loan EMI Calculator

Loan Amount10 year loan15 year loan30 year loan
₹ 20 Lakh₹ 24,851₹ 19,753₹ 15,449
₹ 30 Lakh₹ 37,276₹ 29,630₹ 23,174
₹ 50 Lakh₹ 62,127₹ 49,384₹ 38,623
Home Loan EMI Calculator
Rs.

Federal Home Loan EMI

  • Home Loan EMI (or equated monthly instalment) is a fixed monthly instalment paid by borrowers to Federal Bank against the loan taken for repayment of your loan and payment of interest to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
  • Federal Bank offers Home Loans with loan tenure upto 30 years, and the lowest EMI offered by the bank is Rs. 772 per lakh, Lowest Rate of interest offered by Federal Bank on Home Loan is 8.55% and is one of the most popular housing loans in India..
Federal Bank Housing Loan EMI Calculator at different tenures
EMI for different Home Loan amounts and tenures @ 8.55% interest rate
Loan Tenure
Loan Amount (Rs.) 15 years20 years30 years
2,500,000 ₹ 24,692 ₹ 21,775 19,312
5,000,000 ₹ 49,384 ₹ 43,550 38,623
7,500,000 ₹ 74,075 ₹ 65,324 57,934
10,000,000 ₹ 98,767 ₹ 87,099 77,246
  • As you can see in the above table, for various loan amounts taken at the lowest rate of interest, EMI differs by loan tenure at 15, 20 and 30. Your EMI is higher when you take loan for a shorter tenure of 15 years and it is lower when you apply for a higher tenure of 30.
  • Your EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, every month the proportion of interest payment and principal repaid within each EMI is different. With every EMI, the proportion of principal repayment in EMI keeps increasing and the interest component in EMI keeps reducing.
Federal Bank Home Loan Interest Calculator

Federal Bank Interest Calculator is used along with EMI calculator is used to calculate the total interest a borrower will pay on housing loan at different loan tenure as well as various levels of interest rates.

Home Loan EMI for Rs. 1 Lakh loan amount at lowest 8.55% interest rate offered by Federal Bank for different tenures
Calculated Results for Federal Bank Home Loan EMI 5 years 10 years 15 years 30 years
Federal Bank EMI for a loan amount Rs. 1 lakh at 8.55% ₹ 2,054 ₹ 1,243 ₹ 988 ₹ 772
Total amount you pay back to the bank including principal and interest ₹ 1.23 Lakh ₹ 1.49 Lakh ₹ 1.78 Lakh ₹ 2.78 Lakh
Interest you have to pay during the loan tenure ₹ 23,240 ₹ 49,160 ₹ 77,840 ₹ 1.78 Lakh

The above table shows the longer your loan tenure, lower is the EMI you pay on the loan. However, your total interest outgo is significantly higher in a long tenure loan. In the above example, if you take a Rs. 1 Lakh loan for a period of 30, you pay the lowest EMI of Rs. 772 . However, you pay an interest of Rs. 1.78 Lakh on a Rs. 1 Lakh loan.
In contrast, if you take a Rs. 1 Lakh loan from Federal Bank at the lowest loan rate offered for a period of 15 years, you pay a higher home loan EMI of Rs. 2,054 and pay an interest of only Rs. 23,240 which is less than half of what you paid in a 30 years loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

Federal Home Loan Details

  • Purpose of Loan: Federal house loan is taken to purchase, construct a home, renovate your existing home.
  • Key Features
    • Loan available for both salaried and self employed. Special rates for women borrowers.
    • Borrowers within the age group of 21 and 60 years.
    • Security: Mortgage of property you are planning to purchase, renovate or construct.
    • Loan to Value Ratio of 85%.
    • Loan Tenure can range from 5 to 30 years.
    • Interest rates in the range of 8.55% to 8.65%.
    • Federal home loan EMI per lakh starts from Rs. 772.
  • Processing Fees: 0.50% of loan amount Minimum Rs. 3,000 Maximum Rs. 7,500
  • Special schemes: Federal offers customised home loan interest rates and schemes for special category of borrowers including women borrowers, senior citizens, NRIs etc. Some of the special loan offers of Federal are:
    • Federal Loan for Purchase of House Plots
    • Federal Housing Loan
    • House Warming Loan for Home Loan Customers
Factors Affecting Federal Bank Home Loan EMI
  • Loan amount – This is the amount borrowed by a borrower from Federal Bank. If you apply for a higher loan amount, your monthly EMI will be high. Federal Bank gives minimum home loan of Rs. 15 Lakh upto an amount of Rs. 15 Cr.
  • Interest rate - Interest rates is the rate charged by Federal Bank on your home loan. Higher interest rate increases your housing loan EMI which will increase the total cost of the loan. Federal Bank current home loan interest rate starts at 8.55%. Do complete market research and compare rates and calculate EMI online before you apply for a home loan.
  • Loan tenure – This is the period in which you can repay your home loan in Federal Bank. Longer loan tenure means lower housing loan EMI. Loan term can be determined by your age at the time of loan sanctioning and your retirement age. Generally, Federal Bank offers house loan for a maximum tenure of 30 years.

Federal EMI Calculator Formula

P*r* (1+r)^n/([(1+r)^n]-1)

Here is an illustration of how Federal Bank Home Loan EMI is calculated:

In above formula,

P = Loan amount. This can range from Rs. 15 Lakh to Rs. 15 Cr

r = Rate of interest per month. Current rate is 8.55%, which is linked to Federal

n = tenure in month. For Federal Bank, this can be 360 months

Federal Home Loan Interest Rate Calculator

Typically, Home Loan EMIs constitute a large proportion of the household’s monthly expenditure to pay for a long period. Being a long tenure loan, the total interest you pay on a housing loan for 30 years can be more than the original loan amount you have borrowed from the bank. Housing Loan Calculator online can help you calcuate the interest rate you are eligible for and also, the total interest you will pay during the loan duration. Some of factors that are used for interest rate calculation are:

  • Occupation of the borrowers: Banks charge a slightly higher interest rate on home loans for self-employed as compared to that on loans for salaried borrowers.
  • Amount of the Loan: Federal Bank offers loan of up to Rs. 30 Lakh at 8.55% and loans of above Rs. 30 Lakh at rates ranging from 8.60% to 8.65%.
  • Type of loan opted for: The bank also offers different rates on its various loan schemes such as fixed rate home loan, floating rate home loan and home loan with overdraft facility etc.
  • Existing bank customers: ICICI Bank may also offer lower interest to its existing bank account holders to maintain its relationship.

Tips to decide the right amount of EMI

  • Ascertain the amount you need to borrow: It is important that before approaching a bank for a loan, you need to estimate the amount of loan you need to borrow. Remember house loan is a long term loan, and hence it is advisable to minimise your loan amount to the extent possible. Limit your loan amount to the balance funds you need to fund the property after accounting for your available funds. Also, based on the EMI. you can service, try to opt for the lowest tenure of loans as long tenure loans result in huge interest outgo.
  • Review your current obligations: Before taking a loan. it is advisable to evaluate your current monthly expenses including any EMI obligations that you have on your current loans. The assessment will help you to estimate the amount of EMI you can pay comfortably after taking into account other obligations. Once you arrive at the EMI you can service, you can also decide on the right loan tenure.
    • Calculate your Federal Bank home loan eligibility: Your home loan eligibility is a function of value of the property and assessment of your repayment capacity based on your monthly income. Federal Bank provides a LTV upto 85% and expects the borrower to fund the remaining value of the property by their own money. For example, at its lowest LTV 85 %, Federal Bank would expect its borrowers to provide margin money of 15%.
    • Federal Bank will also estimate your Fixed Income to Obligations Ratio to ascertain the maximum EMI you can service based on your current income and other monthly expenses. The bank applies a certain ratio to your income to estimate your monthly expenses and then adds your other EMI obligations to calculate your fixed obligations. The proportion of fixed income to your calculated fixed obligations gives your FOIR. Federal Bank lends up to a maximum FOIR of 0.65 . Based on the FOIR, the bank will also estimate the maximum amount of EMI you can service as a borrower. Federal Bank's assessment may be different from your assessment. Any differences in assessment may require you to readjust your loan amount requirement. You may also consider paying back other running short term loans to improve your eligibility.

FAQs on Federal Housing Loan EMI Calculator

Will the Federal home loan EMI remain constant or change in future? What happens in case of increase or decrease in interest rate?
  • Typically, the home loan EMI remains unchanged unless the customer requests for a change and the same is approved by Federal Bank subject to its eligibility conditions (note that nominal charges may apply for effecting a customer initiated change in EMI)
  • In case the floating rate of interest on your home loan increases, the EMI will increase as per the reset frequency of your home loan.
  • For partly disbursed loans availed under tranched EMI scheme, your loan EMI will increase with each disbursement.
Will home loan EMI change in case of prepayment?
  • Federal Bank allows prepayment at nil charges in case of floating rate home loans.
  • When you make a prepayment, the outstanding balance of the principal amount on your home loan reduces. In this case, you may choose to either keep the EMI same and reduce the loan tenure (that is paying off the loan faster) or reduce the EMI and keep the loan tenure same (that is paying lesser amount every month). It is beneficial to keep the EMI constant and reduce the loan tenure as you pay less interest to the bank in this option.
Why should I calculate Federal Bank loan EMI before taking a loan?

It is advised to calculate home loan EMI before taking a home loan. There are several benefits of calculating your Federal Bank housing loan EMI as discussed below -

  • In case EMI comes out to be more than your monthly budget, then you have the chance to apply for a lower loan amount which fits your monthly budget and makes EMI easily affordable.
  • If you already know the EMI you have to pay each month, then you can plan your spends accordingly
  • Based on the EMI amount, you can opt for making a prepayment of your home loan in the future when you have surplus amount
What is the EMI for home loan in Federal Bank?

The EMI will vary based on loan amount, tenure, rate of interest. Based on the lowest rate of 8.55% and maximum tenure of 30 years, the Federal Bank home loan EMI for different loan amount will be:

Loan amount EMI
₹ 10 Lakh ₹ 7,725
₹ 30 Lakh ₹ 23,174
₹ 50 Lakh ₹ 38,623

You can compare home loan EMI for different loan amount and tenure and then choose the loan amount based on your repayment capacity.

Can I use the same Housing payments calculator for Federal Bank home loan?

The home loan EMI calculator works in the same manner for all banks. So, you can use the EMI calculator for Federal Bank home loan to calculate the monthly installments and know about. Besides, using the calculator will save your time and help you analyze different offers easily.

How accurate is a Federal Bank Housing Loan EMI calculator?

Online Federal Bank housing finance calculator uses technology to calculate the results and hence, if the data entered by you is correct the results should be 100% accurate

Why should I calculate my Federal Bank home loan EMI in advance before taking a loan?

By calculating the EMI before availing the Federal Bank home finance will help you identify the amount you can pay each month as EMI. Plus, based on your budget, you can assess the maximum loan amount you can be eligible for and the applicable rate for it.

How to pay your Federal Bank Home loan EMI?

To pay the EMI of Federal Bank home loan, you can log in to your net banking account as provided during the time of availing the loan and pay using your savings account or debit/credit card.
You can also visit the branch and submit the cheque of your EMI.

Compare Home Loan EMI of All Banks

Federal Home Loan News - Jan 2020
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More