1. What is the EMI Formula?

The EMI (Equated Monthly Installment) formula calculates the fixed payment amount a borrower makes each month to repay a home loan. Union Bank of India uses the standard EMI calculation formula for its home loans.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (₹)
• \( r \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( n \) — Loan tenure in months (years × 12)
• \( PMT \) — Monthly EMI payment (₹)

Explanation: The formula accounts for both principal repayment and interest payment components that change over the loan tenure.

3. About Union Bank Home Loans

Details: Union Bank of India offers home loans starting at 6.40% p.a. interest rate (as of current offering) with flexible tenures up to 30 years. The actual rate may vary based on applicant profile and market conditions.

4. Using the Calculator

Tips: Enter principal amount in ₹, annual interest rate in percentage (e.g., 6.40), and loan tenure in years. All values must be valid (principal ≥ ₹10,000, rate between 0.1-20%, tenure 1-30 years).

5. Frequently Asked Questions (FAQ)

Q1: What is the current Union Bank home loan interest rate?
A: Rates start at 6.40% p.a. but may vary. Check with the bank for current rates as they change periodically.

Q2: How does EMI change with tenure?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q3: Are there prepayment charges?
A: Union Bank typically allows prepayment without charges, but confirm current policy with the bank.

Q4: What factors affect loan eligibility?
A: Income, credit score, existing obligations, property value, and applicant age are key factors.

Q5: Is the EMI fixed for entire tenure?
A: Yes, for fixed-rate loans. For floating-rate loans, EMI may change if interest rates change.