To find an EMI that you are comfortable with, use the house loan calculator to enter
different loan amounts and periods.
You may use a home loan calculator to determine the equated monthly instalments (EMIs) you must make to the lender each month until the loan is paid in full. Your home loan’s principal, interest rate, and repayment period all go into the EMI. You may use the calculator to determine how much of an EMI is required for a certain home loan amount, interest rate, and repayment period.
What is a Home Loan EMI?
Many people have the cherished ambition of owning a home. Formerly, individuals had to
save up their money for virtually a lifetime before they could afford to purchase or build a
house. The majority of people may now purchase a home more quickly because to the
simple availability of financing.
In India, a number of banks, NBFCs, and other financial organizations offer home loans to
assist consumers in purchasing a property. Moreover, EMIs, or equated monthly
instalments, can make it easier to repay loans by dividing the total amount due into smaller
payments that can be made each month during the course of repayment.
Yet, a house loan, which can have extended terms of up to 30 years, is one of the greatest
liabilities for most borrowers. The affordability of the borrowers, the length of the loan, and
the total amount of interest paid can all be significantly impacted by even a little change in
the interest rate.
So, it’s crucial to choose a loan amount, EMI, and term that works with your financial
situation and life goals. To select the best one, you will need to experiment with a variety of
combinations. Manually doing this computation might be quite time-consuming. Online
house loan EMI calculators might be useful in this situation.
What is a Home Loan EMI Calculator?
This online calculator may be used to determine the monthly payments due on a specific
loan amount. This EMI calculator determines how much the borrower will have to pay in
monthly instalments throughout the set term by factoring in the loan amount, the interest
rate the bank charges, and the payback period.
How does this home loan EMI calculator function?
This calculator, which is a computerized tool, is based on an algorithm that computes the
EMIs that are applicable to the accepted loan using a mathematical formula. You have the
option to download the monthly repayment plan for the duration of the loan in addition to
the EMI.
The formula to determine the EMIs due each month is as follows:
EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
Where,
EMI = The amount of EMI payable each month
P = Principal amount of the loan taken
R = Rate of Interest
n = The total duration of repayment in months
An example can assist you in understanding:
Consider a scenario where a borrower receives a Rs 1 crore property loan with a 20-year
the repayment period and an interest rate of 8%. In this situation, the borrower’s EMI payment
will be Rs 83,644 per month. The entire amount to be returned would be Rs 2,00,74,560,
and the total amount of interest that would be due would be Rs 1,00,74,544.
How to utilize this Home Loan EMI Calculator?
The home loan amount, loan term, and interest rate are the three parameters that the
calculator requires. You may obtain the output as EMI by providing these inputs. By
adjusting the other two inputs, i.e., the house loan amount and tenure, you may obtain an
inexpensive EMI if you are aware of the varying interest rates levied by various lenders.
This calculator may be used anytime, anywhere, from a computer or smartphone because it
is an internet utility.
Information to keep in mind while applying for a home loan:
A home loan’s repayment amount also includes interest, which varies from bank to bank.
Lenders in India often start charging interest at a rate of 6.65%. Upon approving a house
loan, lenders may additionally impose a processing fee; this price is not always charged and
varies from bank to bank. Sections 80C, 24 and 80EEA of the Income Tax Act of 1961 provide
for tax advantages on home loan EMIs as well. If the borrower qualifies, tax benefits of up to
Rs 1.5 lakhs per year on the principle amount under Section 80C, up to Rs 2 lakhs on the
annual interest payments under Section 24, and up to Rs 1,50,000 more on the interest paid
under Section 80EEA may be obtained.
House extensions, renovations, and repairs are all eligible expenses for mortgage loans.
Based on the borrower’s income, CIBIL score, ability to repay the loan, and other factors,
certain lenders also provide pre-approved house loans.
A borrower is typically qualified for a house loan at 5 times his or her yearly income. 90% of
the property’s value is the maximum loan amount most banks will offer.
Usually, lenders like to have a house loan repaid in full by the time the borrower turns 60.
A restriction on the EMI amount may also be imposed by some banks. This limit, which is
often set at 50% of the borrower’s monthly income, is subject to modification if the
borrower already owes other EMIs.