1. What is Home Loan EMI?

The Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. This calculator uses the standard EMI formula to estimate your monthly payments for home loans via Groww.

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)

Note: This calculator is not specific to Malaysia and uses rates starting at 6.70% p.a. for HDFC as reference.

3. Importance of EMI Calculation

Details: Calculating EMI helps you understand your repayment obligations, plan your finances, and compare different loan options before committing to a home loan.

4. Using the Calculator

Tips: Enter the principal amount in INR, annual interest rate (starting at 6.70% p.a.), 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: What is the minimum interest rate for home loans?
A: Rates typically start at 6.70% p.a. for HDFC, but actual rates may vary based on credit score and other factors.

Q2: How does loan tenure affect EMI?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q3: Are there any prepayment charges?
A: This depends on the lender's policy. Some allow partial prepayments without charges after a lock-in period.

Q4: What's included in the EMI?
A: EMI includes both principal repayment and interest component, which varies each month.

Q5: Can I get tax benefits on home loan EMI?
A: In many countries, the interest component of home loan EMI is tax-deductible. Consult a tax advisor for specifics.