Home Loan EMI Calculator
The Home Loan EMI Calculator provides an instant estimate of your EMI by requiring the loan amount, interest rate, and loan tenure. This ensures manageable debt repayments and aids budget planning.
A home loan EMI calculator is a tool that helps calculate monthly installments (EMIs) with just one click. The home loan calculator is helpful and can be easily used by any individual wanting to know their Home Loan EMIs in advance.
To calculate your home loan EMI, you must enter the loan amount, interest rate, and loan tenure.
What is Home Loan EMI?
The fixed monthly payment you make to the lender during the loan term to repay a Home Loan is the EMI. The main amount and loan interest are the two constituents. It is easier for borrowers to plan their budgets because EMI remains the same throughout the loan. However, over time, the principal and interest ratios vary, with the interest component being larger in the early years.
Calculate Your Home Loan EMI then Apply for a Home Loan
It is essential to know how much EMI one can pay before applying for a house loan. To obtain an estimate based on your preferred loan amount, interest rate, and tenure, we utilized the Home Loan EMI Calculator. Knowing that your repayment plan will fit into your budget after you have a clear understanding of your EMI will give you confidence to apply for a house loan.
Loan Amount
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Rate of Interest (p.a)
%
Loan Tenure
Yr
Detailed Calculation
Monthly EMI
Principal Amount
Total Interest
Total Amount
| Month - Year | Principal Amount | Interest Charged | Total EMI | Balance |
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List of documents required for Home Loan
Salaried Individuals
Loan application form
Passport size photographs
Identity Proof Documents like PAN Card, Aadhar Card, Driving License, Passport, or Voter ID Card
Residence Proof like electricity, water, telephone bill, ration card, or any other government-issued ID proof that contains permanent residential address
Copy of 6 months' bank account statement
Signature Identification proof from bankers
Statement of Personal Assets and Liabilities
Last 3 months’ salary slips
Tax returns for the last 2 fiscals / TDS Certificate of Form 16
Proof of job stability from the current employer
Self-Employed Individuals
Loan application form
Passport size photographs
Identity Proof Documents like PAN Card, Aadhar Card, Driving License, Passport, or Voter ID Card
Residence Proof like electricity, water, telephone bill, ration card, or any other government-issued ID proof that contains permanent residential address
Copy of 6 months' bank account statement
Signature Identification proof from bankers
Statement of Personal Assets and Liabilities
Acknowledged copies of Income tax returns
Proof of advance income tax payments such as photocopies of challans
Proof of ongoing business
Note: In case the employee has switched jobs in the last 1 year, then copies of the offer/joining letter of the new company are required.
How the Home Loan Calculator Helps You
Using the Home Loan EMI calculator to determine the EMIs in advance can be helpful in many ways. Check some of the reasons why you should use it:
How much money should you borrow?
The Home Loan calculator can help decide the loan amount based on how much EMI you can afford to pay from your income. In other words, you plan your finances better.
How long should tenure be?
Knowing the EMI that you can afford to pay every month via the Home Loan Calculator, you can determine the right tenure for your loan.
How much down should you take?
Using the home loan EMI calculator, you can figure out how much you should pay as the down payment to save maximum on your interest while keeping your EMIs to a minimum.
Factors Affecting Home Loan EMI
Multiple factors can affect home loan EMI. Some of the key factors are as follows:
- Loan amount: The loan amount you borrow affects EMI. The higher the amount borrowed, the higher the EMI.
- Loan tenure: The tenure for which you take a home loan also affects installments. If the period is longer, accordingly EMI will be less. Remember that a longer tenure also means that you pay more interest over the period as compared to a shorter tenure loan.
- Interest rate: In the case of floating interest rate loans, your EMI will change in line with fluctuations in interest rates. If the rate increases, EMI also increases.
How to Reduce Your Home Loan EMI
- If you are looking to get a new home loan or if you already have one, there are some tips to help you reduce your home loan EMI.
- Check with multiple lenders before finalizing the loan. Choose the lender who offers the best deal.
- Do not borrow more than you can afford. If you cannot afford to repay on time, do not borrow.
- Making a higher down payment. The lower the amount borrowed, the lower the EMI.
- Choose a longer tenure (but this also means you will pay more interest over the period).
- Make a prepayment for your loan if and when possible.
- Apply for a balance transfer home loan to obtain a better deal.
Home Loan FAQs
What is EMI?
Equated Monthly Installment (EMI) is the repayment of a fixed amount to the lender for a specified tenure at a given rate of interest. The EMI amount is a total of interest and principal. In the initial phase, the major portion of the EMI constitutes interest and a small portion towards principal repayment. However, near the final month of the loan term, principal payments make up the majority of the EMI and interest payments make up the smaller share.
What is a Home Loan Calculator?
People frequently struggle to figure out the EMI amount when they plan to purchase a home with a loan. To determine the EMI amount at a specific interest rate, loan amount, and tenure, one can utilize the home loan calculator. The house loan calculator is helpful for those who wish to make decisions based on their ability to repay loans in the following circumstances:
- Tenure would be variable, but the loan amount and the interest rate would be static
- Static tenure and interest rate, but the amount is variable
- When interest rates drop, the borrower must choose between lowering the EMI or keeping the same EMI and shortening the term.
- When interest rates rise, the borrower must choose between raising the EMI or keeping the same EMI and lengthening the loan term.
What is Pre-EMI?
When a home loan is disbursed against a property that is still under construction, the lender may offer an EMI that starts as soon as the construction is finished. You can only make pre-EMI payments on the interest portion of the loan until then. Since the principal loan amount is still in place and you will only be paying the interest portion of the EMI, the pre-EMI amount is less than the entire EMI amount. Your home loan duration does not include the pre-EMI period.
Let’s take an example to understand this better. Say you have a loan of 50,00,000 for 30 years on a property that gets completed in 3 years. Your calculated EMI is Rs. 39,000/- approx. In these 3 years, you can pay only the interest of the total EMI amount. That would be your Pre-EMI and the total loan duration would be 33 years (30+3).
How is EMI calculated on home loans?
Home loan EMI calculation requires 3 components i.e. Principal (loan amount), applicable rate of interest, and tenure. A reducing loan's EMI is calculated using the following mathematical formulas:
EMI (E) = PxRx(1+R)t (1+R)N - 1- P = Principal amount or loan amount
- R = Rate of interest per month
- t = Repayment period in months
- n = Number of months
Should I opt for Pre-EMI?
You should opt for Pre-EMI if:
- If you want to save money before EMI, make sure to invest it so that you will receive a healthy return on your investment.
- if you want to sell your house when the building is finished.
- if you believe you can't afford a full EMI right now and are waiting for a change in your salary.
How is home loan EMI calculated?
EMI is calculated using a simple mathematical formula: EMI Amount = [P x R x (1+R)N] [(1+R)N-1]
- P = principal loan amount,
- R = rate of interest and
- N = number of years
These factors determine the amount of the EMI.
What is a floating rate of interest?
Adjustable interest rates, often known as floating rates, fluctuate in value in tandem with the market. If a borrower takes out a mortgage with a variable rate, it may start with a 4% rate and then adjust, either up or down, thus changing the monthly payments.
What if my floating rate of interest? Does that mean I will have to pay a bigger amount of EMI?
With the increase in the floating rate of increase, the interest amount increases. Since interest is included in the EMI you pay, it increases as the adjustable rate of interest rises.
What are the tax benefits of paying Home loan EMIs?
According to the Income Tax Act, of 1961, you can avail of the following tax benefits on your Home loan EMIs:
- Section 80C - Up to Rs 1.5 lakhs can be claimed every year on the principal amount paid towards the loan.
- Section 24 - You can claim a deduction of up to Rs 2 lakhs from the interest you pay annually.
- Section 80EE - An extra deduction of up to Rs 50,000 on interest paid can be claimed, subject to certain terms and conditions.
What happens if I don't make my home loan EMI payments on schedule?
A late payment fee will be charged by the lender if you are unable to make your home loan EMI payments on time. Additionally, as a penalty, the lender could impose additional interest on you. Additionally, the lender may send you a legal demand to collect the debt if you keep missing payments. Keep in mind that your credit score will be impacted if you miss any EMI payments.