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Home Loan EMI Calculator Apr 2017

Last Updated 27th Apr 2017

What is Housing Loan EMI?

  • Home Loan EMI is a fixed amount of money you pay towards repayment of your home loan every month on a fixed day of the month till your home loan is fully paid back.
  • Home loan EMI comprises of both principal repayment and interest payment.
  • While the home loan EMI remains constant, the interest component of the EMI keeps reducing and the principal component of the EMI keeps increasing, except in case of any change in interest rate on the loan
  • In case of partly disbursed home loans, you may opt to pay only interest on the disbursed loan amount. This interest is called pre-EMI.
  • Pre-EMI is payable monthly till the final disbursement is made, after which the regular EMI would commence.
Home Loan EMI Calculator
Rs.

Home Loan EMI Calculator

Home Loan EMI

  • Home Loan EMI (or equated monthly instalment) is a fixed amount of money paid by you to against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
  • With offering Home Loans with loan tenure upto years, the loan EMI can be as low as Rs. 0 per lakh, to make it more affordable and convenient to meet your needs. Lowest Rate of interest offered by on Home Loan is %.
  • Loan Tenure
    Loan Amount (Rs.)
    2,500,000 0
    5,000,000 0
    7,500,000 0
    10,000,000 0
  • This EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, the principal component keeps increasing and on the other hand the interest component keeps reducing.

Home Loan EMI calculator formula

P*r* (1+r)^n/([(1+r)^n]-1)

Here is an illustration of how Home Loan EMI is calculated:

In above formula,

P = Loan amount. This can range from Rs. 0 to Rs. 0

r = Rate of interest per month. Current rate is %, which is linked to

n = tenure in month. For , this can be 0 months

Will the home loan EMI remain constant or change in future? What happens in case of increase or decrease in interest rate?

  • Typically, the home loan EMI remains unchanged unless the customer requests for a change and the same is approved by subject to its eligibility conditions (note that nominal charges may apply for effecting a customer initiated change in EMI)
  • In case the floating rate of interest on your home loan increases, will typically keep the EMI constant but increase the loan tenure. So, you will pay the same EMI but for a longer duration. In case the interest rates increase to an extent that the revised loan tenure is more than the maximum permissible by , the bank may increase your EMI amount.
  • For partly disbursed loans availed under tranched EMI scheme, your loan EMI will increase with each disbursement.

Will home loan EMI change in case of prepayment?

  • allows prepayment at nil charges or penalty in case of floating rate home loans.
  • When you make a prepayment, the outstanding principal amount on your home loan reduces. In this case, you may choose to either keep the EMI the same and reduce the loan tenure (that is pay off the loan faster) or reduce the EMI and keep the loan tenure the same (that is pay lesser amount every month). It is beneficial to keep the EMI constant and reduce the loan tenure as you pay less interest to the bank in this option.
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Home Loan News - Apr 2017
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