Home Loan is one of the most popular financial products that individuals opt for due to the high prices of homes in our country. Bank of India (BOI) is one of the leading public sector banks of India that provide affordable home loans to individuals. But do you know about the importance of home loan interest rates for a borrower? Well, the interest rate is the most important thing that an individual has to look at while applying for a home loan because of its impact on the repayment (EMI amount).
BOI Home Loan Interest rate is one of the cheapest and affordable rates that can be availed by the borrowers in a hassle-free manner. If you are looking to opt for a home loan and looking to know about how does BOI Home Loan Interest Rate affects your repayment amount then this could be a good read for you. We will be explaining everything about the home loan interest rates offered by Bank of India, what are the factors that affect interest rates, the importance of it in EMI estimation, etc. So, without any delay, let’s start reading! Importance of BOI Home Loan Interest Rate in EMI Calculation The most important part of any loan is its repayment and home loans are usually considered to be high-ticket purchases as they generally range around INR 30 lakh to INR 40 lakh. Also, they are generally taken for a longer period ranging from 15 to 20 years. That’s why in the case of a home loan, it is important to keep an eye on the repayment amount. And the interest rate is one of the important things that affect your repayment amount. Higher the interest rates would be, the higher will be the EMI amount. BOI Home Loan Interest rate usually ranges from 6.85% to 7.75% per annum. Let’s understand this through an example. Suppose an applicant wants to opt for a loan amount of INR 30 lakh for a period of 15 years. Here, we are taking two different interest rates of 6.90% per annum and 7.50% per annum so that you can understand the effect of the BOI home loan interest rate on the EMI amount. Have a look below. On taking the interest rates of 6.90% per annum, the EMI amount will be INR 26,797 and the interest outgo will be INR 18,23,533 on the loan amount of INR 30 lakh. While, on taking the interest rates of 7.50% per annum, the EMI Amount will be INR 27,810 and the interest outgo will be INR 20,05,867. So, you can see that on opting for a higher BOI home loan interest rate, the applicant will have to pay approximately INR 1,000 more as compared to lower interest rates. Similarly, there is a difference of around INR 2 lakh when it comes to the interest outgo. So, you can see clearly how choosing a higher interest rate can affect your repayment amount and what is the importance of choosing an affordable BOI Home Loan interest rate. You can have an estimate of the EMI amount and interest outgo beforehand with the help of BOI Home Loan EMI Calculator. You just need to fill in a few basic details and it will give you results instantly.
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Anika Sharma
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