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EMI Calculation Formula:
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EMI (Equated Monthly Installment) is the fixed payment amount a borrower makes to the lender each month to repay a home loan. It consists of both principal and interest components, with the interest portion being higher in the initial years.
The calculator uses the standard EMI formula:
Where:
Explanation: The formula calculates the fixed monthly payment that will completely pay off the loan over its term, including both principal and interest.
Details: Bank of Maharashtra offers competitive home loan rates in Mumbai with various schemes for different borrower categories. Current interest rates typically range from 8.35% to 9.15% p.a. (as of 2023) depending on the loan amount and borrower profile.
Tips: Enter the loan amount in INR, annual interest rate (without the % sign), and loan tenure in years. The calculator will show your monthly EMI, total payment over the loan term, and total interest payable.
Q1: What factors affect home loan EMI?
A: EMI depends on three main factors - loan amount, interest rate, and loan tenure. Higher amounts or rates increase EMI, while longer tenures reduce EMI but increase total interest.
Q2: How does Bank of Maharashtra calculate interest?
A: Like most banks, they use reducing balance method where interest is calculated on the outstanding principal each month.
Q3: Are there any prepayment charges?
A: Bank of Maharashtra typically allows prepayment without charges for floating rate loans, but check current terms as policies may change.
Q4: What is the maximum loan tenure available?
A: Usually up to 30 years or till age 70, whichever is earlier, subject to eligibility.
Q5: Are there special schemes for women borrowers?
A: Yes, Bank of Maharashtra often offers slightly lower interest rates (typically 0.05% less) for female home loan applicants.