1. What is Home Loan EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to the lender each month until the loan is paid off. It consists of both principal and interest components.

2. How Does EMI Calculation 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 term in months
• \( PMT \) — Monthly EMI payment (INR)

Explanation: The formula calculates the fixed monthly payment that would pay off the loan with interest over the specified term.

3. Importance of EMI Comparison

Details: Comparing EMIs across lenders helps borrowers find the most affordable loan option. Even small differences in interest rates can result in significant savings over the loan term.

4. Using the Calculator

Tips: Enter the principal amount in INR and loan term in years. The calculator will show EMI comparisons for major banks (SBI, ICICI, HDFC) at their current rates.

5. Frequently Asked Questions (FAQ)

Q1: Why compare home loan EMIs?
A: Different banks offer different interest rates. Comparing helps you save money - a 0.5% lower rate can save lakhs over 20 years.

Q2: What other factors should I consider?
A: Also compare processing fees, prepayment charges, loan tenure options, and customer service quality.

Q3: Are these interest rates fixed?
A: Rates may change. Check with banks for current rates before applying.

Q4: How does loan tenure affect EMI?
A: Longer tenure reduces EMI but increases total interest paid. Shorter tenure means higher EMI but less interest overall.

Q5: Can I get lower interest rates?
A: Yes, through negotiation, good credit score, or special offers like women borrower discounts.