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. For home loans in India, EMIs are calculated using reducing balance method.

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 tenure in months
• \( PMT \) — Monthly EMI payment (INR)

Explanation: The formula accounts for both principal repayment and interest payment components that vary each month.

3. Comparing Bank Rates in India

Current Rates (2024):

• SBI: 7.50% p.a.
• ICICI: 6.70% p.a.
• HDFC: 7.20% p.a.
• Axis: 7.10% p.a.

Note: Rates may vary based on loan amount, tenure, and applicant profile.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in percentage, and loan tenure in years. You can either enter custom rate or select a bank for pre-set rates.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect home loan EMI?
A: Principal amount, interest rate, and loan tenure are the three main factors. Processing fees and insurance may add to costs.

Q2: How does tenure affect EMI?
A: Longer tenure reduces EMI but increases total interest paid. Shorter tenure means higher EMI but less interest overall.

Q3: Are there prepayment charges?
A: Most banks allow partial prepayment after 6-12 EMIs without charges, but terms vary by lender.

Q4: What is the maximum home loan tenure?
A: Typically 30 years or until age 70-75, whichever comes first.

Q5: How to reduce EMI burden?
A: Options include negotiating lower rate, increasing down payment, opting for longer tenure, or balance transfer to lower-rate lender.