Your transaction could not be processed due to one the following reasons:
|
Loan Amount (P) |
3000000 |
|
Interest Rate |
10.75 |
|
Interest Rate in % per Month ( r ) |
0.008958333 |
|
Tenure: No. Of Installments (Years) |
10 |
|
Tenure: No. Of Installments (Months) (n) |
120 |
|
Processing Fee (0.5%) |
15000 |
|
Total Interest Amount payable by the end of tenure |
3225000 |
|
Interest Potion in EMI Amount |
322500 |
|
Pre-payment Fee |
|
1+r |
1.0 |
||
 |
(1+r)^n |
2.9 |
|
|
((1+r)^n – 1) |
1.9 |
||
|
P*r |
26875 |
|
EMI |
40902 |
|
Total Interest Amount payable by the end of tenure |
1908192 |
|
Total Interest Amount payable in EMI |
15902 |
|
Overall (principal + Interest) Amount payable by the end of tenure |
4908192 |
|
Calculations at the end of the loan closure |
|
|
Home Loan |
3000000 |
|
Home Loan Interest |
1908192 |
|
Overall Cost of the home |
4908192 |
|
Rent you might earn during the loan period (that can be counted in for EMI) |
2400000 |
|
Net EMI you need to pay |
20902 |
|
Net worth of the home costing you after deducting the rent earned |
2508192 |
|
Benefit of rent amount surparsing the interest amount |
491808 |
|
Benefit of Tax exemption for the principal amount (1 Lac per annum) |
20000 |
|
Benefit of Tax exemption for the Interest amount (1.5 Lac per annum) |
30000 |
|
Overall Principal and Interest Tax benefit at the end of tenure |
500000 |
|
Net worth of the home costing you after deducting the tax benefits as well |
2008192 |
|
|
Housing Loan EMI Excel calculators:
References:
BankBazar Housing Loan EMI Calculator
The Money Quest: Home Loan Tax Benefits – Section 80c vs. 24(b)
Suppose you take on a loan for P Rupees, the tenure of the loan is n months (for example, n=240 for a 20-year loan), the monthly rate of interest is r (usually calculated by dividing the annual rate of interest quoted by the bank by 12, the number of months in a year, and dividing that by 100 as the rate is usually quoted as a percentage) and E Rupees is the EMI you have to pay every month. Let us use Pi to denote the amount you still owe to the bank at the end of the i-th month. At the very beginning of the tenure, i=0 and P0=P, the principal amount you took on as a loan.
At the end of the first month, you owe the bank the original amount P, the interest accrued at the end of the month r×P and you pay back E. In other words:
P1 = P + r×P – E
or to rewrite it slightly differently:
P1 = P×(1 + r) – E
Similarly, at the end of the second month the amount you still owe to the bank is:
P2 = P1×(1 + r) – E
or substituting the value of P1 we calculated earlier:
P2 = (P×(1 + r) – E)×(1 + r) – E
and once again expanding it and rewriting it slightly differently:
P2 = P×(1 + r)2 – E×((1 + r) + 1)
where "xy" denotes "x raised to the power y" or "x multiplied by itself y times". To make this look slightly simpler, we substitute "(1 + r)" by "t" and now it looks like this:
P2 = P×t2 – E×(1 + t)
Continuing in this fashion and calculating P3, P4, etc. we quickly see that Pi is given by:
Pi = P×ti – E×(1 + t + t2 + … + ti-1)
At the end of n months (that is, at the end of the tenure of the loan), the total amount you owe to the bank should have become zero. In other words, Pn=0. This implies that:
Pn = P×tn – E×(1 + t + t2 + … + tn-1) = 0
which means that:
P×tn = E×(1 + t + t2 + … + tn-1)
We can simplify this further by noticing that we have a geometric series of n terms here with a common ratio of t and a scale factor of 1. The sum of such a series is given by "(tn – 1)/(t – 1)", which we substitute in the above equation to yield:
P×tn = E×(tn – 1)/(t – 1)
which can be rewritten as:
E = P×tn×(t – 1)/(tn – 1)
which can again be rewritten by substituting the value of t back as "(1 + r)" as:
E = P×r×(1 + r)n/((1 + r)n – 1)
and this is the formula for calculating your EMI. This formula can also be rendered more clearly as:
Suppose you take a loan from a bank of 10,00,000 Rupees for 15 years at 8.5% annual rate of interest calculated on a monthly rest basis. In that case, P = 10,00,000, n = 15×12 = 180 and r = (8.5/12)/100 = 0.0070833333. Putting these values into the formula given above gives us E = 9847.40 (approximately).
When you write a programme to calculate your EMI using the formula given above, be careful to structure your computations to accommodate loss of precision and rounding errors. For more information, read "What Every Computer Scientist Should Know About Floating-Point Arithmetic" (PDF) by David Goldberg or section 4.2, "Floating Point Arithmetic", in "The Art of Computer Programming, Volume 2: Seminumerical Algorithms" (3rd Edition) by Donald Knuth.
Source: rmathew: Calculating EMIs
Charts – historic RBI interest rates
|
|
|
The current Indian interest rate RBI (base rate) is 8.500 % |
RBI – Reserve Bank of India
The Reserve Bank of India (RBI) is the Indian central bank. The RBI’s most important goal is to maintain monetary stability – moderate and stable inflation – in India. For an overview of current inflation in India, click here or here for current inflation by country. The RBI uses monetary policy to maintain price stability and an adequate flow of credit. Rates which the Indian central bank uses for this are the bank rate, repo rate, reverse repo rate and the cash reserve ratio. Reducing inflation has been one of the most important goals for some time.
Other important tasks of the Reserve Bank of India are:
· to maintain the population’s confidence in the system, to safeguard the interests of those who have entrusted their money and to supply cost-effective banking systems to the population;
· to manage foreign currency controls: facilitating exports, imports and international payment traffic and developing and maintaining the trade in foreign currencies in India;
· issuing money (the rupee) and adequately ensuring a high quality money supply;
· providing loans to commercial banks in order to maintain or grow the Gross National Product (GNP);
· acting as the government’s banker;
· acting as the banks’ banker.
RBI Repo rate or key short term lending rate
When reference is made to the Indian interest rate this often refers to the repo rate, also called the key short term lending rate. If banks are short of funds they can borrow rupees from the Reserve Bank of India (RBI) at the repo rate, the interest rate with a 1 day maturity. If the central bank of India wants to put more money into circulation, then the RBI will lower the repo rate. The reverse repo rate is the interest rate that banks receive if they deposit money with the central bank. This reverse repo rate is always lower than the repo rate. Increases or decreases in the repo and reverse repo rate have an effect on the interest rate on banking products such as loans, mortgages and savings.
This page shows the current and historic values of Indian central bank’s Repo rate.
For a summary of the current interest rates of a large number of central banks please click here.
Tables – current and historic Indian central bank interest rates
|
|
|
In order to be able to show the data on this page, we make use of a large number of sources of information that we believe to be reliable. For more information and our disclaimer, click here. |
Source: RBI repo rate – Indian central bank’s current and historic interest rates
|
Total Chit Amount |
50000 |
|
No. Of Chit members |
20 |
|
No.of EMIs (once per every member i.e. 1 x no.of members) |
20 |
|
EMI (Total Chit Amount/No.of Members or EMIs) |
2500 |
|
Chit Organizer commission (5% of Chit amount every month) |
2500 |
|
Current Bank Interest Rate for Regular FD (Annual) |
9.25 |
|
Month Number |
EMI |
Overall EMI Till that Month |
Bank interest Till Date |
Overall EMI with interest Till that Month |
|
|
1 |
2500 |
2500 |
19 |
2519 |
|
|
2 |
2500 |
5019 |
39 |
5058 |
|
|
3 |
2500 |
7558 |
58 |
7616 |
|
|
4 |
2500 |
10116 |
78 |
10194 |
|
|
5 |
2500 |
12694 |
98 |
12792 |
|
|
6 |
2500 |
15292 |
118 |
15410 |
|
|
7 |
2500 |
17910 |
138 |
18048 |
|
|
8 |
2500 |
20548 |
158 |
20706 |
|
|
9 |
2500 |
23206 |
179 |
23385 |
|
|
10 |
2500 |
25885 |
200 |
26085 |
|
|
11 |
2500 |
28585 |
220 |
28805 |
|
|
12 |
2500 |
31305 |
241 |
31546 |
|
|
13 |
2500 |
34046 |
262 |
34309 |
|
|
14 |
2500 |
36809 |
284 |
37093 |
|
|
15 |
2500 |
39593 |
305 |
39898 |
|
|
16 |
2500 |
42398 |
327 |
42725 |
|
|
17 |
2500 |
45225 |
349 |
45573 |
|
|
18 |
2500 |
48073 |
371 |
48444 |
|
|
19 |
2500 |
50944 |
393 |
51336 |
|
|
20 |
2500 |
53836 |
415 |
54251 |
|
|
Totals |
18 |
50000 |
4251 |
|
Utilizing Chit fund to make more earnings |
|
|
You take the chit fund in the Fourth month |
4 |
|
In the Fourth month you take chit at bid amount of |
3000 |
|
Amount you get on second month |
47000 |
|
Monthly Interest if you deposit the amount in bank |
362 |
|
No. of Months left in your Chit |
16 |
|
Overall Bank interest you earn on the deposit you made of chit amount |
5797 |
|
Your overall returns from Chits |
52797 |
|
Say you have two commission chits occurred in overall chit cycle |
2 |
|
Worth of benefit you earn from commission chits |
5000 |
|
Chit organizer commission to be removed |
2500 |
|
Overall benefit returns from chit |
55297 |
|
Overall benefit returns from chit (without organizer commission) |
57797 |
|
Overall benefit |
7797 |
|
Overall % benefit |
15.6% |
Excel Sheet Calculator:
Other useful references:
Income Tax Department of Government of India (GOI) collects tax from all the citizens whose earnings cross taxable amount. Tax is collected for every financial year (April this year to March of next year).
All the public and private sector companies operating in India, deducts certain amount of employee salary toward tax every month in the form of TDS (Tax deducted at Source). This simplifies tax collection to be systematic.
Government of India (GOI) under Income Tax rules allows certain expenditures borne by citizens to be exempted from the tax calculations. However, every citizen claiming exemption has to submit the respective expenditure proof in order to avail the tax exemption. The tax exempted expenditures are:
1. Actual H.R.A
RECEIPT OF HOUSE RENT
(Under Section 1 (13-A) of Income Tax Act)
Received a sum of Rs. ____________________________ (Rupees________________ ________________________________________________________________________
Towards the rent @____________________ per month from ___________________ to __________________ in respect of House No.____________________________ _________________________________________________ situated at ____________
_______________________________________________________________________
(Affix Revenue Stamp of Rs.1/-)
Date: Signature of the House Owner
Name:
Address: _____________________
______________________________
______________________________
Doc Formats:
|
"Being Me" Savings Account |
|
|
Schedule of Facilities are exclusive of service tax. Service Tax of 10.3% to be collected separately. |
|
|
SCHEME CODE : RSYOU, RSYNE, RSYNO |
December 15, 2011 |
|
Eligibility |
|
|
Average Quarterly Balance : Saving |
Rs.2,500/- |
|
Account Opening Amount |
Rs.2,500/- |
|
Schedule of Facilities |
|
|
International Debit Cum ATM Card |
Free |
|
Replacement of damaged/lost/stolen card/ re -generation of Pin/ Copy retrieval |
Free |
|
IDBI Bank ATM -Non Financial / Financial Transaction |
Free |
|
Other Bank ATM |
5 transactions Free per month, thereafter Non Financial -Rs 8 per transaction Financial -Rs 20 per transaction |
|
International ATM |
Non Financial -Rs 30 per transaction Financial-Rs 140 per transaction |
|
Personalised Multicity book |
20 leaves per quarter free and Rs 2 per cheque leaf above free limit. |
|
Account statements |
|
|
Passbook |
Free |
|
Monthly statement by e-mail |
Free |
|
Duplicate Statement at the branch |
Free |
|
Duplicate Passbook / Hold mail facility / Overseas mailing |
Free |
|
Account closure charges |
Nil |
|
Certificates |
|
|
Standing instructions |
Free |
|
Balance/Interest/Signature verification certificate/Banker’s report |
Free |
|
Foreign inward remittance certificate |
Free |
|
Remittances |
|
|
Demand Drafts (Branch/Non Branch)/Payorder |
10 Transactions Free per month (Both inclusive) Above free limit Rs 2.50/1000, (Min.-Rs 25/-and Max. Rs 10,000/-) |
|
Payable at Par utilisation |
Free |
|
Foreign currency demand drafts / international money orders |
Free |
|
DD/ payorder cancellation (Domestic/Foreign Currency) |
Free |
|
NEFT |
Upto Rs 1 Lakh -Rs 5 per transaction Rs 1,00,001 and above -Rs 25 per transaction |
|
RTGS |
Rs 2 lakh to Rs 5 Lakh -Rs 25 per transaction, Above Rs 5 lakh -Rs 50 per transaction. |
|
Any Branch Banking* |
|
|
Any branch cheque/ account to account transfers |
Free |
|
Cash deposits (Home Branch) |
15 transactions per month free -Excess charged @Rs 2/1000. (Min. Rs 25 and Max Rs. 10,000/-) (15 transactions includes both Home -Non Home Cash deposit) |
|
Cash deposits (Non -Home Branch) (Max. Rs. 50,000/-per day) |
|
|
Any Branch Cash withdrawal(By self only) |
Free (Upto Rs 50,000/-per day only) |
|
The services allows you to operate your account from any IDBI bank branch across India. This service is not available for encashing FD, issuance of DD/PO and third party bearer cheque These can be done only at Home Branch. Third party cash withdrawal is not allowed. Third party cash deposit is allowed to the maximum of Rs 50,000/-per day per account. |
|
|
Cheque transaction charges |
|
|
Cheque collections (Branch/Non branch locations)/Speed Clearing |
Only other bank commission will be recovered |
|
Foreign currency cheque collection |
Only other bank commission will be recovered |
|
Cheque stop payment instructions |
Free |
|
Old records / copies of paid cheques |
Free |
|
Alternate Channel Banking |
|
|
Internet/Mobile/Phone/SMS Banking |
Free |
|
Special Features * |
|
|
Particular |
Facilities |
|
ATM Card |
Free Being Me debit card |
|
Cash withdrawal limit |
Rs.25,000/-per day |
|
POS (Point of sale) |
Rs.25,000/-per day. |
|
Other Features |
Preferantial rate on educational loan. |
|
Tie-up with various outlets. |
|
|
Discounted charges for opening of share trading account. |
|
|
* Special features shall be withdrawan if the Average Quarterly Balance is not maintained for two consecutive quarters |
|
|
Charges |
|
|
ECS/ Cheque issued and returned ( Financial reasons ) |
Rs 151 |
|
Unarranged overdraft / Cheque Purchase (A + B) (Subject to approval) |
|
|
Per occasion (A) |
Rs.102 |
|
Interest (B) |
19.75% |
Source: "Being Me" Savings Account OR
If you have fixed deposit in the nationalized bank or corporate, then interest income from the deposit amount is taxable and 10% will be deducted at the source. This process is called as Tax Deduction at Source(TDS).
Interest income is calculated based on the branch, if you have FD in the bank, up to Rs.10000 interest income in that branch is not taxable and Rs.5000 in case of corporate FD like Tata Motors or Mahindra Finance. So, financiers advise customers to split the amount deposit in the different branches to avoid TDS.
If you are senior citizen(above 65) and your income is below the taxable income, then you can submit Form 15H to the bank branches to fully exempt from the tax. Note that if you are not submitting the forms, the tax will be deducted and you have get it through filing the tax returns. That normally takes another one year to refund the amount you paid as the tax. A fresh Form 15H needs to be furnished for each deposit that is placed with the Bank
If you are age is below 65 and your income is below the taxable income, then you can submit Form 15G to the bank branches to fully exempt from the tax. Note that if you are not submitting the forms, the tax will be deducted and you have get it through filing the tax returns. That normally takes another one year to refund the amount you paid as the tax.
Deposits held by minors are also subject to TDS. The credit for the TDS can be claimed by the person in whose hands the minor’s income is included.
A non-senior citizen can open a joint account with senior citizen. In that case senior citizen must be the first account holer and they can get the prevail interest rates applicable to senior citizen.
