PNB Home Loan Calculator 2018

PNB Loan Calculator

PNB Home Loan EMI

• Home Loan EMI (or equated monthly instalment) is a fixed amount of money paid by you to PNB against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
• With PNB offering Home Loans with loan tenure upto 30 years, the loan EMI can be as low as Rs. 758 per lakh, to make it more affordable and convenient to meet your needs. Lowest Rate of interest offered by PNB on Home Loan is 8.35%.

EMI for different Home Loan amounts and tenures @ 8.35% interest rate

	Loan Tenure
Loan Amount (Rs.)	15 years	20 years	30 years
2,500,000	24,399	21,459	18,958
5,000,000	48,798	42,918	37,915
7,500,000	73,198	64,376	56,873
10,000,000	97,597	85,835	75,831

• 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 years. 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 years.
• 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.

Home Loan EMI for Rs. 1 Lakh loan amount at lowest 8.35% interest rate offered by PNB for different tenures

	5 years	10 years	15 years	30 years
PNB EMI for a loan amount Rs. 1 lakh at 8.35%	2,044	1,232	976	758
Total amount you pay back to the bank including principal and interest	1.23 Lakh	1.48 Lakh	1.76 Lakh	2.73 Lakh
Interest you have to pay over loan tenure	22,640	47,840	75,680	1.73 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 years, you pay the lowest EMI of Rs. 758 . However, you pay an interest of Rs. 1.73 Lakh on a Rs. 1 Lakh loan.
In contrast, if you take a Rs. 1 Lakh loan from PNB at the lowest loan rate offered for a period of 15 years, you pay a higher home loan EMI of Rs. 2,044 and pay an interest of only Rs. 22,640 which is less than half of what you paid in a 30 year loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

PNB Home Loan Details

• Purpose of Loan: PNB 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 80%.
• Loan Tenure can range from 5 to 30 years.
• Interest rates in the range of 8.35% to 8.95%.
• Lowest EMI of Rs. 758 per lakh
• Processing Fees: 0.50% of loan amount Minimum Rs. 20,000 Maximum Rs. 50,000
• Special schemes: PNB 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 PNB are:
• Construction of House/Flat
• Purchase of House/Flat
• PNB Flexible Housing Loan
• Unnati Home Loans

• Loan amount – This is the amount borrowed by a borrower from PNB. If you apply for a higher loan amount, your monthly EMI will be high. PNB gives minimum home loan of Rs. 5 Lakh upto an amount of Rs. 1 Cr.
• Interest rate - Interest rates is the rate charged by PNB on your home loan. Higher interest rate increases your housing loan EMI which will increase the total cost of the loan. Lowest interest rate offered by PNB is 8.35%. 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 PNB. 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, PNB offers house loan for a maximum tenure of 30 years.

PNB EMI calculator formula

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

Here is an illustration of how PNB Home Loan EMI is calculated:

In above formula,

P = Loan amount. This can range from Rs. 5 Lakh to Rs. 1 Cr

r = Rate of interest per month. Current rate is 8.35%, which is linked to PNB 1 Year MCLR, which is currently 8.30%. Last revised on 01st Apr 18

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

PNB Home Loan Interest Rate Calculator

Typically, Home Loan EMIs constitute as large proportion of a 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. PNB Home Loan Interest Rate Calculator 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 slightly higher interest rate on home loans for self employed as compared to that on loans for salaried borrowers.
• Amount of the Loan: PNB offers loan of up to Rs. 25 Lakh at 8.35% and loans of above Rs. 25 Lakh at rates ranging from 8.35% to 8.45%.
• 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 loan, you need to estimate the amount of loan you need to borrow. The amount of loan you need to borrow is a function of the value of the property and available funds with you. 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 own available funds. Also, based on the EMI you can service, try to opt for 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 do an evaluation of 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 PNB 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. PNB provides a LTV upto 80% and expects the borrower to fund the remaining value of property by own money. For example, at its lowest LTV 80 %, PNB would expect its borrowers to provide margin money of 20%. In case this margin payment is higher than your available funds as estimated by you, you might need to look for higher LTV loans, which may carry higher interest rates and hence, will result in higher EMIs.
  • PNB 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. PNB 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. PNB's assessment may be different from your own 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.

Will the PNB 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 PNB 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, PNB will typically keep the EMI constant but increase the loan tenure. So, you will pay the same EMI but for a longer duration. In case the interest rates increase to an extent that the revised loan tenure is more than the maximum permissible by PNB, the bank may increase your EMI amount.
• 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?

• PNB allows prepayment at nil charges or penalty in case of floating rate home loans.
• When you make a prepayment, the outstanding balance of principal amount on your home loan reduces. In this case, you may choose to either keep the EMI the same and reduce the loan tenure (that is paying off the loan faster) or reduce the EMI and keep the loan tenure the 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 PNB loan EMI before taking a loan?

It is advised to calculate home loan EMI prior to taking a home loan. There are several benefits of calculating your PNB 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 prepayment of your home loan in future when you have surplus amount
Compare with other banks

Compare Home Loan EMI of All Banks

• Allahabad Bank
• Andhra Bank
• Axis Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• Citibank
• Corporation Bank
• DBS Bank
• DCB Bank
• Dena Bank
• Dhan Laxmi Bank
• DHFL
• Edelweiss
• Federal Bank
• GIC Housing Finance
• HDFC
• HSBC Bank
• ICICI Bank
• IDBI Bank
• IDFC Bank
• IIFL
• Indiabulls
• Indian Bank
• Indian Overseas Bank
• Jammu And Kashmir Bank
• Karnataka Bank
• Karur Vysya Bank
• Kotak Bank
• Lakshmi Vilas Bank
• LIC Housing Finance
• LT Housing Finance
• OBC
• PNB
• PNB Housing Finance
• Punjab and Sind Bank
• RBL Bank
• Reliance Capital
• SBI
• South Indian Bank
• Standard Chartered Bank
• Syndicate Bank
• UCO Bank
• Union Bank of India
• United Bank of India
• Vijaya Bank
• Yes Bank