1. What is Home Loan Amortization?

Home loan amortization is the process of paying off a home loan with regular payments over time. In India, this is typically done through Equated Monthly Installments (EMIs) that include both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Loan tenure in months
• \( PMT \) — Monthly EMI payment

Explanation: The formula calculates the fixed monthly payment required to fully amortize (pay off) the loan over the specified term.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps home buyers in India plan their finances, understand affordability, and compare different loan offers from banks and housing finance companies.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (common rates in India range from 6.5% to 9.5%), and loan tenure in years (typically 5-30 years in India).

5. Frequently Asked Questions (FAQ)

Q1: What is the typical home loan tenure in India?
A: Most Indian banks offer home loans with tenures from 5 to 30 years, with 20 years being common.

Q2: Are there any prepayment charges in India?
A: Many Indian banks now allow partial prepayments without charges, but terms vary by lender.

Q3: What is the minimum salary required for home loan in India?
A: Typically ₹25,000-₹30,000 per month, but depends on EMI-to-income ratio (usually 40-50% of monthly income).

Q4: What documents are needed for home loan in India?
A: Standard documents include KYC, income proof, property documents, and bank statements.

Q5: Are there tax benefits on home loans in India?
A: Yes, under Section 80C (principal) and Section 24 (interest) of Income Tax Act.