1. What is Home Loan EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower makes to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over time, the loan is paid off in full.

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 and converted to decimal)
• \( n \) — Loan tenure in months
• \( PMT \) — Monthly EMI payment (INR)

3. Current Home Loan Rates in India

Sample Rates (2024):

• SBI Home Loan: 8.40% p.a. onwards
• HDFC Home Loan: 8.45% p.a. onwards
• ICICI Home Loan: 8.50% p.a. onwards
• PNB Home Loan: 8.60% p.a. onwards

Note: Rates vary based on loan amount, tenure, and applicant's credit profile.

4. Using the Calculator

Instructions: Enter the loan amount in INR, annual interest rate (e.g., 8.40 for 8.40%), and loan tenure in years. The calculator will show your monthly EMI, total interest payable, and total payment amount.

5. Frequently Asked Questions (FAQ)

Q1: How does loan tenure affect EMI?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q2: What is the minimum home loan amount in India?
A: Most banks offer home loans starting from ₹3 lakhs, with no upper limit (subject to eligibility).

Q3: What factors affect home loan eligibility?
A: Income, credit score, age, existing obligations, property value, and loan-to-value ratio.

Q4: Are there prepayment charges?
A: Most banks allow prepayment without charges for floating rate loans. Fixed rate loans may have prepayment penalties.

Q5: What is the maximum home loan tenure?
A: Typically 30 years or up to age 70-75 of the borrower, whichever is earlier.