1. What is the EMI Calculation?

The Equated Monthly Installment (EMI) calculation determines your fixed monthly payment for a ₹15 lakh home loan, combining both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( PMT \) — Monthly EMI payment (₹)
• \( 1500000 \) — Principal loan amount (₹15 lakhs)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Loan term in months

Explanation: The formula accounts for compound interest over the loan term, distributing payments equally each month.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers plan their finances, compare loan offers, and understand the total cost of borrowing.

4. Using the Calculator

Tips: Enter current home loan interest rate (e.g., SBI's 8.40% p.a.) and desired loan term in years. The calculator shows monthly EMI, total repayment, and interest paid.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical interest rate for ₹15 lakh home loans?
A: As of 2024, rates range from 8.40% to 9.50% p.a. depending on lender and borrower profile.

Q2: How does loan term affect EMI?
A: Longer terms reduce EMI but increase total interest. A 20-year ₹15L loan at 8.4% has ₹12,938 EMI vs ₹17,362 for 10 years.

Q3: What other costs should I consider?
A: Factor in processing fees (0.5-1% of loan), insurance, and potential prepayment charges.

Q4: Can I reduce my EMI?
A: Yes, by increasing down payment (reducing principal), choosing longer term, or waiting for rate cuts.

Q5: How often do home loan rates change?
A: For floating rate loans, EMI changes when lenders adjust rates (typically quarterly).