Oops loan interest rate how to#

From April 2016 onwards, the Reserve Bank of India (RBI) has mandated a new method for computing lending rate to replace the base rate system.

Markup - This component of a small percentage is added to the base rate to arrive at the EIR (Effective interest rate) for a specific type of home loan and varies from one type to another.Įffective Interest Rate (EIR) = Base Rate + Markup.

This rate is subject to frequent changes on the basis of multiple inputs.

Base Rate - It is the standard lending rate of the bank, applicable for all retail loans.

Let's explore these components to give you a better understanding. The combination of the two is what you will be paying on the loan. The applicable interest rate on a home loan consists of two components, the base rate and the markup rate.

Oops loan interest rate how to#

How to Calculate the Effective Interest Rate? Wherein, P is the Principal, r is the rate of interest, and n is number of instalments or loan tenure in months. EMI Calculation Formula: Alternatively, you can also use the following formula to calculate your EMI liability for your home loan.Once the details have been fed, you can click on the ‘Calculate’ button to get a detailed breakup of your loan including the amount payable towards interest. You will be required to fill up the fields provided on the calculator with the following details – EMI Calculator: You can calculate the interest amount applicable to your home loan by simply using a home loan EMI calculator.You can calculate the same using one of the two methods listed below: In general, home loans are long-term loans and it is important to figure out your overall interest liability towards the loan in the first place. *All HDFC Home Loans are at the sole discretion of HDFC Home Loans. *Home loan interest rates for all banks updated on 3,000)Ģ% of the loan amount plus GST or Rs. Property Power Loan: 1% of loan amount (min.

Housing Loan: 0.50% of the loan amount (min.50,000)Ġ.50% of the loan amount or a minimum of Rs. 1,500 and max.Ġ.15% of the loan amount subject to a maximum of Rs.