Home Loan EMI Calculator is an online tool used for calculating the Equated Monthly Instalment (EMI) of a housing loan. It is easy-to-use and gives accurate results on the basis of a few loan details. The housing loan EMI calculator also functions as a home loan interest calculator as it displays the interest amount to be paid on a home loan. It also shows the payment schedule and the total payment break-up of a house loan.
How to Calculate EMI Using Paisabazaar’s Home Loan EMI Calculator?
To calculate home loan EMI using the Home Loan Calculator, follow the steps below:
Step 1: Input the amount you wish to borrow
Step 2: Input the applicable home loan interest rate (Compare rates)
Step 3: Input the tenure over which you want to repay your home loan
As soon as you complete the above steps, your home loan EMI will be displayed along with other details such as total interest payable, total amount payable and amortisation schedule.
Once you decide on the EMI, find the best home loan offer.
How to Reduce Home Loan EMI?
If you are searching for ways to lower your home loan EMI payments, consider the following practices:
- Extend home loan tenure: You can opt for longer housing loan tenure to reduce your monthly instalments. However, keep in mind that with a longer repayment period, you will have to pay more interest. So, extend home loan tenure only when you are struggling in paying loan installments. To know the total interest payable for different loan tenures, use a home loan EMI calculator.
- Refinance your home loan: You can transfer your outstanding loan amount to lenders offering lower interest rates, longer loan tenure, or both. However, before going for a home loan balance transfer, do a cost-benefit analysis to ensure that your interest savings outweigh the transfer costs. Also, use an online home loan EMI calculator to know exactly how much your EMIs can go down on a lower home loan rate.
- Make part prepayments whenever possible: When you make a part prepayment, you pay a portion of the outstanding principal early, which in turn gives you an option to either reduce EMI or tenure. Choose lower EMI only when you are striving to make loan payments in full. A home loan generally has a lock in of about one year after which you can fully or partially prepay the loan amount. Also, unlike before, banks and NBFCs cannot levy foreclosure charges/ prepayment penalties on floating rate housing loans sanctioned to individuals, for purposes other than business.
Why Should You Know Home Loan EMI in Advance?
Calculating home loan EMI before applying for a housing loan will help in deciding:
- How much you can afford to borrow on your home loan
- Whether you should go for a long-term or a short-term home loan
- How much should you contribute towards your home down payment
- How to plan out your finances to ensure timely loan repayments
Compare Home Loan EMI Calculation of All Banks/NBFCs/HFCs
|Lenders||EMI Per Lakh*||Interest Rate|
|Aditya Birla Housing Finance Ltd.||Rs. 805||9.00%|
|Axis Bank||Rs. 659||6.90%|
|Bajaj Finserv||Rs. 649||6.75%|
|Bank of Baroda||Rs. 649||6.75%|
|Bank of India||Rs. 655||6.85%|
|Canara Bank||Rs. 659||6.90%|
|Central Bank of India||Rs. 655||6.85%|
|Federal Bank||Rs. 709||7.65%|
|Fullerton Grihashakti||Rs. 733||7.99%|
|HDFC Bank||Rs. 649||6.75%|
|ICICI Bank||Rs. 649||6.75%|
|IDBI Bank||Rs. 655||6.85%|
|India Shelter Finance Corp. Ltd.||Rs. 1,106||12.00%|
|Indiabulls Housing Finance||Rs. 779||8.65%|
|Indian Overseas Bank||Rs. 669||7.05%|
|Karnataka Bank||Rs. 699||7.50%|
|Kotak Mahindra Bank||Rs. 641||6.65%|
|LIC Housing Finance||Rs. 642||6.66%|
|PNB Housing Finance||Rs. 689||7.35%|
|Punjab & Sind Bank||Rs. 641||6.65%|
|Punjab National Bank||Rs. 652||6.80%|
|Standard Chartered Bank||Rs. 733||7.99%|
|State Bank of India||Rs. 646||6.70%|
|Tata Capital Housing Finance||Rs. 659||6.90%|
|UCO Bank||Rs. 659||6.90%|
|Union Bank of India||Rs. 652||6.80%|
*To calculate Home Loan EMI, the loan tenure is assumed as 30 years.
Q. How can I pay my home loan EMI?
A. To pay your home loan EMIs, you can:
- Issue Standard Instructions (SI) to your bank
- Submit post-dated cheques to your lender
- Opt for direct deduction of monthly instalments by your employer
Note: The different EMI payment options mentioned above may or may not be available with all the lenders.
Q. What if the home loan EMI is not paid?
A. If you do not pay your home loan EMI, the lender will levy charges in the form of late payment fees and penal interest on the outstanding amount. The lender will also report this delayed payment/default to credit agencies, leading to a drop in your credit score. This further will make it difficult for you to get approved for new loans/credit cards in the future. After a 3-month period, if the amount is still unpaid, the lender will mark your loan as a Non-Performing Asset (NPA). You will also be sent a legal notice asking to repay your dues. If the dues are still unpaid, then after two months, the lender will send you a notice stating the property’s value and that they will auction it to recover unpaid dues. The auction date is usually set one month after the date of the notice, giving you a sufficient time of six months before auctioning your property.
Q. Can I change my home loan EMI date? If yes, how can I do it?
A. To change your housing loan EMI date, speak to your loan officer or the customer care representative regarding the same. As the process to initiate this change differs significantly from one lender to another, it is better to speak with the bank representatives to know the right procedure.
Q. What is pre-EMI in home loan?
A. Pre-EMI in housing loans refers to monthly payments that comprise only the interest component of your home loan. In case of Pre-EMI, you are not repaying your principal amount. You are only paying home loan interest. Lenders usually give you the choice of Pre-EMIs when the pledged home or apartment is under construction.
Q. Is GST applicable to home loan EMI?
A. No, GST (Goods and Services Tax) does not apply to home loan EMI. However, it is applicable on several other home loan charges such as processing fees, late payment charges and prepayment charges.
Q. What factors affect your home loan EMI?
A. Factors affecting your home loan EMI are:
- Loan Amount: Higher the amount borrowed, the higher will be your home loan EMI, provided the tenure and the interest rate remain fixed.
- Interest Rate: Higher home loan rate leads to higher home loan EMI as well as the total interest cost.
- Loan Tenure: Longer tenure leads to lower EMI but higher total interest payable as compared to a shorter tenure for the same loan.
Q. What are the components of a House Loan EMI Calculator?
A. The information given by a home loan calculator usually has 3 components:
- Home Loan EMI: The home loan EMI is an amount that every borrower is liable to pay every month to its lender until the loan is fully repaid. It is the most important piece of information as it helps the borrower to know how much of a loan he/she can afford.
- Payment Breakup: The second component of the EMI calculation result is the breakdown of the total amount that borrowers will be paying to their lender. This breakdown will include details, such as the principal amount and interest amount.
- Amortization Schedule: An amortization schedule is a tabular presentation of the payments made towards a home loan. After each EMI payment, it shows how much of the amount is going towards paying off your interest component and a principal component. The amortization schedule includes all the information regarding your home loan repayments, such as loan amount, period of scheduled payments and outstanding loan after each loan payment during the entire loan period. It further provides the home loan EMI breakup detailing the repayment towards the interest and the loan’s outstanding principal. The schedule helps borrowers make an informed decision regarding home loan prepayment or balance transfer.
Q. What are the benefits of using the Paisabazaar Home Loan EMI Calculator?
A. Paisabazaar’s Home Loan EMI Calculator takes you a step closer to deciding on the home loan you want to apply for. The other benefits of using our home loan calculator are:
- Instant results: Our housing loan calculator for home loans cuts short your lengthy and tedious calculations to seconds. It gives results instantly, at the click of a mouse without the hassle of using a pen, paper or calculator
- Easy-to-use: Paisabazaar’s online home loan calculator is simple in its design and easy for anyone to use. To get a result, all you need to do is type in a few simple details about your housing loan in the given input fields or use sliders to adjust the value of your inputs
- Try different combinations: You can try different variations by adjusting sliders in the loan EMI calculator. You can change the loan amount, interest rate and loan tenure and recalculate your home loan EMI till you find the monthly payment that suits your budget.
- No charges: You can use this calculator any number of times you wish to without any cost. This online tool is available 24*7 on the Paisabazaar website
Also Read: Documents Required for Home Loan
Q. How does the loan amount affect the home loan EMI?
A. With the increase in the loan amount, the home loan EMI also increases provided the loan tenure and the interest rate remains unchanged. For a clearer understanding, check the table below to see the change in home loan EMI, total interest payable and total amount payable for different loan amounts based on loan tenure stretching up to 20 years and rate of interest fixed at 6.95% p.a.
|Particulars||Floating Rate of Interest|
|Rs. 40 Lakh||Rs. 60 Lakh||Rs. 80 Lakh||Rs. 1 Crore|
|EMI||Rs. 30,892||Rs. 46,338||Rs. 61,784||Rs. 77,230|
|Total Interest Payable||Rs. 34,14,085||Rs. 51,21,127||Rs. 68,28,170||Rs. 85,35,212|
|Total Amt. Payable||Rs. 74,14,085||Rs. 1,11,21,127||Rs. 1,48,28,170||Rs. 1,85,35,212|
As one can see in the table, higher loan amounts lead to higher home loan EMI. If you want to reduce your home loan EMI, one of the ways is to contribute more towards home loan down payment so that you have to borrow less from the lender.
If you want to be eligible for a higher loan amount, you can add a co-applicant such as your spouse or sibling who has a good repayment history, stable income and a good credit score.
Q. How loan tenure influences your home loan EMI?
A. Housing loan EMI decreases with the increase in the loan tenure and vice-versa. However, longer loan tenure also results in higher total interest payable. The following table shows changes in the home loan EMI, total payable interest and total payable amount for a home loan of Rs. 60 lakh at an interest rate of 6.95% for different loan tenures.
|15 Years||20 Years||25 Years||30 Years|
|EMI||Rs. 53,762||Rs. 46,338||Rs. 42,216||Rs. 39,717|
|Total Interest Payable||Rs. 36,77,181||Rs. 51,21,127||Rs. 66,64,669||Rs. 82,98,077|
|Total Amt. Payable||Rs. 96,77,181||Rs. 1,11,21,127||Rs. 1,26,64, 669||Rs. 1,42,98,077|
In the table above, it can be observed that with the increase in the loan tenure, home loan EMIs decrease. But despite the decreasing EMI, the total interest payable increases with the increase in the loan tenure. And due to an increase in the total interest amount, the total amount payable towards your home loan also increases. Hence, one should be careful when choosing their home loan tenure.
One should opt for longer home loan tenure only when they are having trouble paying the current EMI. Even in the case of home loan prepayment, instead of decreasing your home loan EMI, one should opt for decreasing their home loan tenure as doing so will help you save on the total interest amount. Always calculate your EMI with the help of a home loan calculator before opting for a housing loan.
Q. What is the effect of home loan rates on home loan EMIs?
A. When looking for a home loan, every borrower should first enquire about the interest rate. This is because the home loan interest rate is one of the major factors that influence affordability to own a house. It affects the overall cost of the home loan. Higher home loan rates increase the home loan EMI and reduce the ability to take on a larger loan amount. Lower home loan interest rates decrease the loan EMI and increase the possibility to:
- take on a larger loan amount
- take up a top up loan or a second loan
- reduce the loan tenure
- prepay EMIs as much as possible
As per the fund requirements and current financial situation, you can choose any of the above options.
When applying for a home loan, borrowers can opt for either a fixed interest rate or a floating interest rate. In the case of fixed-rate home loans, the EMIs will remain constant throughout the loan period. However, in the case of floating rate home loans, if the interest rate decreases any time during the loan period, one of the two things could happen – a decrease in the subsequent EMI amount or a decrease in the loan tenure or a mix of both. And the reverse happens when the home loan rate increases. In a scenario when your home loan rate decreases, you should always ask your lender to decrease your loan tenure and keep your current EMI amount constant as it will help you save on the total loan interest. But if you are having a hard time paying your monthly instalments, you can opt for a lower EMI.
The following table shows changes in the home loan EMI, total payable interest and the total payable amount for a home loan of Rs. 60 lakh at different interest rates for 20 years.
|Particulars||Floating Rate of Interest|
|EMI||Rs. 46,518||Rs. 48,336||Rs. 50,186||Rs. 52,069|
|Total Interest Payable||Rs. 51,64,30||Rs. 56,00,539||Rs. 60,44,737||Rs. 64,96,655|
|Total Amt. Payable||Rs. 1,11,64,305||Rs. 1,16,00,539||Rs. 1,20,44,737||Rs. 1,24,96,655|
Q. How home loan prepayments impact your home loan EMIs?
A. If a borrower partially prepays his/her home loan, then either the subsequent EMIs will get reduced or the original loan tenure will get reduced or a mix of both. The reverse happens when the borrower misses paying an EMI (due to EMI holiday or cheque dishonour or bounce or insufficient balance). In such a scenario, either the subsequent EMIs rise, the tenure of the loan increases or a mix of both, besides attracting a financial penalty, if any.
It is always advisable to prepay your home loan as soon as possible as the interest component in the initial years of loan repayment is high. Doing so will reduce the loan burden and help to save on the interest amount, which you can otherwise invest to build wealth.
Q. How does paying home loan EMI help in reducing tax obligation?
A. To reduce the loan burden and to encourage more people to buy and invest in properties, the Government of India offers a host of home loan tax benefits. The Section 80C of the Income Tax Act, 1961, allows home loan borrowers to claim tax deductions of up to Rs. 1.5 lakh on the principal amount repaid through your EMIs annually. As per Section 24b of the Income Tax Act, you can claim tax deductions of up to Rs. 2 lakhs on the home loan interest paid during the financial year.
Learn about: home loan benefits
Q. How does EMI calculation help in planning the home purchase?
A. It is important to plan your finances before applying for a home loan. When you calculate your EMIs using the EMI calculator, you get to know not only the affordable loan amount but also the tenure in which you can repay the same. By knowing your monthly payments, you can go for a loan amount that you can easily repay.