1. What is the EMI Calculation?

The EMI (Equated Monthly Installment) calculation determines your fixed monthly payment for a BOB home loan linked to your credit card. The current interest rates start at 6.50% p.a.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate divided by 12 and converted to decimal)
• \( n \) — Loan tenure in months
• \( PMT \) — Monthly EMI payment (INR)

Explanation: The formula accounts for both principal and interest components of your loan, spread equally over the loan tenure.

3. Importance of EMI Calculation

Details: Calculating your EMI helps in financial planning, ensuring the loan payments fit within your monthly budget before committing to the loan.

4. Using the Calculator

Tips: Enter the principal amount in INR, annual interest rate (starting at 6.50% p.a.), and loan tenure in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current interest rate for BOB home loans?
A: The rates currently start at 6.50% p.a. but may vary based on your credit profile and loan terms.

Q2: How does linking to a credit card affect the home loan?
A: Linking to a credit card may offer benefits like reward points on EMI payments and easier payment management.

Q3: Can I prepay my home loan?
A: Yes, most home loans allow prepayment, though there may be charges for early closure within a certain period.

Q4: What factors affect my EMI amount?
A: The principal amount, interest rate, and loan tenure are the primary factors determining your EMI.

Q5: Is there a maximum loan tenure available?
A: Typically, home loans can extend up to 30 years, depending on your age and retirement plans.