Home Loan EMI Calculator
Calculate your Home Loan EMI instantly. Plan your dream home purchase with our accurate Home Loan Equated Monthly Installment calculator.
Loan Details
EMI Breakdown
Monthly EMI
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Planning Your Dream Home
Buying a home is the biggest financial decision for most families. Smart planning can save you lakhs.
Key Tips:
- Check Affordability: Your EMI should ideally not cross 40% of your in-hand salary.
- Maximize Down Payment: Paying 25-30% upfront instead of the minimum 10-20% reduces your loan burden drastically.
- Opt for Shorter Tenure: A 25-lakh loan at 8.5% for 20 years costs ₹27 Lakhs in interest. For 15 years, it costs only ₹19 Lakhs!
- Prepay Aggressively: Using your annual bonus to pay just 1 extra EMI a year can reduce your tenure by years.
Tax Benefits 2024-25
- Principal Repayment: Covered under Section 80C (Limit ₹1.5L).
- Interest Payment: Covered under Section 24(b) (Limit ₹2L).
- First Time Buyers: Additional benefits may be available under Section 80EEA (subject to specific government notifications).
Frequently Asked Questions
How does the Home Loan EMI calculator work?
It uses the standard formula [P x R x (1+R)^N]/[(1+R)^N-1] where P is Principal, R is Rate of Interest, and N is Tenure in months. It gives you the exact monthly outflow.
What is a good tenure for a home loan?
A longer tenure (20-30 years) reduces your monthly EMI but significantly increases the total interest paid. A tenure of 15-20 years is generally considered optimal to balance EMI and Interest.
Does this calculator account for prepayments?
This calculator provides the base EMI. Use our 'Loan Prepayment Calculator' to see how extra payments can reduce your tenure.
What is the difference between Fixed and Floating Interest Rates?
Fixed Rate: EMI remains constant. Floating Rate: EMI changes with market fluctuations (RBI Repo Rate). Floating rates are usually lower and have no prepayment penalties.
How much loan am I eligible for?
Banks typically lend up to 60 times your net monthly income. Also, your total EMIs (including the new one) should not exceed 50-60% of your take-home salary.
What are the tax benefits on a Home Loan?
You can claim deductions under Section 80C (up to ₹1.5 Lakhs on Principal) and Section 24b (up to ₹2 Lakhs on Interest) for a self-occupied property.
Does my Credit Score affect my Home Loan?
Yes, a score above 750 leads to lower interest rates and faster approval. A low score might lead to rejection or a higher interest rate.
What is LTV (Loan to Value) Ratio?
LTV is the percentage of the property value the bank will fund. Usually, banks lend 75-90% of the property cost; you have to pay the rest as a down payment.
Can I transfer my Home Loan to another bank?
Yes, this is called a Balance Transfer. If another bank offers a lower interest rate, you can shift your loan to save on interest costs.
Are processing fees refundable?
No, processing fees paid to the bank for loan evaluation are usually non-refundable, even if the loan is rejected.