Recalculate your Home Loan EMI and Total Interest Due in a snap!
Monthly amount paid to your Home Loan provider
Your debt repayment schedule in regular instalments over a period of time.
|Year||Principal Paid(A)||Interest Paid(B)||Total Payment (A+B)||Outstanding Loan Balance||Pre-payment|
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The BankBazaar home loan EMI calculator is not only simple and easy to use but also free. You don’t have to sign up to use the tool. You can just visit the site and start using the home loan calculator. All you have to do is enter 3 main components to calculate your home loan EMIs:
You are also given the option to include home loan prepayment in the EMI calculation. You can opt for monthly and yearly amortisation schedules. The amortisation table presents you with details such as outstanding balances after each EMI payment, interest payment, and principal repayment. The details will be presented in the form of tables and charts to make it easier for anyone to understand. The home loan calculator is also available on the BankBazaar mobile app.
Home loan amortisation schedule presents you with the following details:
With the amortisation table, you get to know exactly when your loan repayment comes to an end.
Formula for home loan EMI calculation:Equated Monthly Installment (EMI) = P x r x (1+r)^n/((1+r)^n -1)
EMI : Equated Monthly Installment,
P : Principal or loan amount,
r : Interest rate per month (the annual interest rate is divided by 12 to get the monthly interest rate), and
n : Number of monthly installments or loan tenure in months.
*This formula doesn’t include the home loan processing fee charged by the bank.
Mr. Patra borrowed a home loan amount of Rs.3,500,000 (Principal amount or P) from a reputed bank. The rate of interest (R) associated with the loan stands at 8.65% p.a. The tenure of the loan (N) is 360 months for 30 years.
After you apply the formula to calculate your home loan EMI, the monthly instalment amount comes up to Rs.27,285.
P = 3,500,000 R = 8.65% N = 30 years or 360 Months
Monthly EMI = Rs 27,285
|Home Loan Tenure||Opening Balance||Interest Rate Applied||EMI Paid For the Year||Principal The Paid For the Year||Interest Paid For the Year||Closing Balance|
While computing the Home loan EMI, taking inflationary and deflationary scenarios of floating interest rate into account, you will be better prepared to meet the outcome. Depending on the EMI, you can opt for prepayment of your home loan.
Paying EMIs every month can be hard on your bank account. You have to prepare a monthly budget to save money after paying your bills, EMIs, and meeting any unexpected financial requirements. Fortunately, the government of India offers tax benefits to Indian nationals on home loan repayments to incentivise home loans. The following are the various tax benefits you can get with regards to home loan repayments:
Tax deduction is applicable only if the home loan is used to purchase or construct a home. You can claim tax benefits only when the construction is completed or you have taken possession of the home. There is no tax benefit for property under construction. Tax deduction is not applicable to a home loan taken for repair, reconstruction or renovation.
If you have a lump sum amount of money, you can use it to make part payment on your home loan. Part payment made towards principal repayment can bring down your EMI or reduce your loan tenure. Lower EMI means that you can save on interest payments. For part payments to make that much of an impact on your EMI, the part payment has to be significantly large. You make more than one part payment. However, not all banks allow part payments.
Home loan EMI is fixed but there are certain circumstances under which it can change such as:
When deciding on a housing loan, you must consider whether you want to opt for a floating rate or fixed rate loan. The loan amount and loan tenure can be determined by you, the borrower, but the rate of interest on your home loan is determined by the bank based on the RBI's policies and rules.
Therefore, it is advisable to use home loan calculator and while doing so, one must keep two scenarios in mind. The rate of interest can either increase or decrease during the loan tenure. Accordingly, your home loan EMI will also change. Borrowing a home loan is a long-term commitment that can span years. In the case of a floating rate loan, when there is a decrease in home loan interest rate, you will benefit. In the case of a fixed rate loan, as the rate of interest is fixed throughout the loan tenure, even if the home loan rates are slashed you will not benefit from it. When you take the effort to determine how much EMI you will have to pay under these 2 circumstances prior to borrowing a home loan, you have the opportunity to change your loan amount and loan tenure to make the EMI more affordable to you.
For partly disbursed home loans, you can make pre-EMI payments, wherein you are only paying interest payments until the full loan amount is disbursed.
Regular EMI consists of both the interest payment and principal repayment. Regular EMI commences only after the full loan amount is disbursed.
The following are the benefits of paying pre-EMI:
No. This home loan repayment calculator is 100% free to use and no specified conditions exist to qualify for its usage. As a visitor to BankBazaar.com, you can access the page directly and compute your housing loan EMIs.
You should be able to get this information from the loan related documents issued by your bank. Alternatively, you can search for this detail on the bank's official website, or by personally contacting the bank's customer support department.
Immediately below the EMI calculation, you can see details of your housing loan EMI breakup, Your Amortization Details (Yearly/Monthly), a graphical representation of the amortization details associated with your house loan.
Well, it makes sense to do so even though our calculator is accurate. There may be slight changes, owing to the way your bank calculates the EMI. Also, your installment may include other monetary components which you were probably not aware of, while using the tool. Therefore, make sure to cross check before making critical decisions.
Yes, you can use find this calculator available on our apps.
Tap the left hand top navigation – Finance Tools >> Locate the EMI Calculator. Bankbazaar mobile apps are available on both Android and iOS platforms.
Paying you EMI is a fairly simple procedure. However, going off track even slightly with regard to your Equated Monthly Payments (EMI) can cause disastrous circumstances. From putting you in a financial crunch to increasing the interest to be paid substantially, the outcomes can be plenty. To ensure that you don’t fall into the pitfall of bad decision making when it comes to EMI:
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Before applying for a home loan, it’s important to first gauge if you’re eligible for it or not. Trying to avail a Home Loan without actually understanding a particular lender’s eligibility criteria can cause detrimental repercussions. Apart from not getting the loan itself, a rejection in your Home Loan applicant may decrease your credit score while will certainly be a barrier to you for future loans that may or may not even pertain to housing finance.
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With the country’s apex bank deciding to keep the policy rates unchanged, the Equated Monthly Installments (EMIs) on home loans and cars loans are unlikely to come down in the near future. In the wake of the decision, officials from banks like Bank of Baroda, State Bank of India and others have come forward with statements stating that there won’t be any change in the existing rates. The Managing Director, Global Markets, State Bank of India stated that while the lending rates can still go down considering banks lower their deposit rates but to expect deduction in marginal cost-based lending rates (MCLR) is limited.
13th December 2017
Housing and auto loans have seen an increase in defaults over the period of two years. In other words, borrowers have failed to pay off the loan on a timely basis. Two-wheeler and gold loans have however seen a reduction in defaults.
Defaults in the PSU banks have shown an increment, which can be linked to the higher percentage of home, loans within this sector. For other non-banking financial institutions and private banks, defaults showed a downward trend even though these organizations showed a higher disbursement rate in the last few years. The retail lending of these banks also grew from around 14% to 19% since 2014.
29th November 2017
For the past few months, we all are only reading news about banks dropping their home loan interest rates. It all started when the leading public sector bank, State Bank of India dropped their Marginal Cost of Lending Rate by 5 basis points to 8.30% p.a. and claimed itself as the cheapest home loan provider in the county.
Many leading banks followed this trend and started dropping their home loan rates and was eager to get the “Cheapest home loan providers” tag. A new twist in the banking sector is that Dena Bank, a leading state-owned lender in the country has also dropped their home loan interest rates. Currently, Dena Bank charges 8.25% p.a interest rate on home loans.
This special interest rate offer that Dena Bank announced is a part of their retail loan carnival which starts from 16 November 2017 and continues till the end of this calendar year. Dena Bank stated that carnival is specially launched to promote home and vehicle loans among people. If you are planning to apply for Dena Bank Home Loan, check your home loan eligibility using an online home loan eligibility calculator.
17th November 2017
The festive season, of this financial year, has brought in golden opportunities for many of the retail borrowers. Of late, the premium banks of the nation including SBI, ICICI Bank, Axis Bank, Bank of Baroda and Andhra Bank have come up with lucrative offers to entrance iPhone buyer, and automobile or home buyer. By providing EMI and processing fees waivers, cash back on home loans, interest rate cuts etc., banks are trying to bolster retail sectors growth. They are now not leaving any stone unturned to pull in more number of borrowers.
In fact for home loans up to Rs. 30 lakh, SBI’s Hamara Ghar scheme offers fixed rate of 8.35% for the initial two years. Similarly, the ICICI Bank has also come up with a home loan scheme using which borrowers can gain 1% cashback on every EMI. With all these initiatives taking place,the market is having an exponential rise in the number of buyers.
10th October 2017
Though home loan growth has declined in the banking sector, banks are jostling their way to corner market share with interesting schemes. After State Bank of India (SBI) and Axis Bank, ICICI Bank, India's largest private sector bank by consolidated assets has declared the launch of a new home loan product that offers borrowers the benefit of 1% cashback on every equated monthly installment (EMI) for the entire period of the loan. SBI had recently launched a new scheme campaign 'Hamara Ghar' that offers housing finance to the affordable housing segment. The loan has a fixed rate of interest for two years up to a loan amount of Rs.30 lakh. SBI also waived processing fees on all home loans. Axis Bank also introduced an offer promising to waive EMIs if the borrower does not default on EMIs in an attempt to improve borrower behaviour.
ICICI's latest home loan enables the borrowers to select their preferred mode of cashback, the bank said. They can choose to make use of the cashback to prepay the principal outstanding of their home loan or take credit in their ICICI bank account. Both residents and NRI borrowers can apply for the cashback home loan.
4th October 2017
Axis Bank will now offer EMI waiver for the disciplined borrowers. 12 EMIs will be waived off for home loan amounts of up to Rs.30 lakh. The executive director of Axis Bank, Rajiv Anand, stated that people who take the loan amounts for at least a tenure of 20 years will be eligible for the waivers.
At present, the base interest rate for the home loans stand at 8.35%. A borrower stands a chance of saving more than Rs.3 lakh in waivers of interest and principal. Additional savings can be availed by customers who are eligible under the PMAY (Pradhan Mantri Awas Yojana) scheme.
22nd August 2017
The repo rate has been cut by the Reserve Bank of India or RBI by 25 basis points. At present, then repo rate stands at 6%. This step will bring down the lending rates associated with car loans and home loans. According to the veterans of the finance sector, this can prove to be a gala time for the consumers as the equated monthly instalments for their loan are going to reduce substantially.
The festivals have just started. The onset of the festival season means that offers will be rolled out by different lenders. This can bring the EMIs further down. The governor of the Reserve Bank of India hoped that the transmission of the lending rate cuts become effective in the other types of loans too. He wants this to happen with respect to the liquidity situation.
7th August 2017
Since the service tax has been increased from 15% to 18% according to the new GST law, there has been a lot of confusion about whether the home loan EMIs will become more expensive. The fact is, service tax was never charged on EMI, and thus, tax will not be deducted under GST. Hence, home loan EMIs will not increase after the implementation of GST. However, since the prices of the projects that are nearing completion might increase after the implementation of GST, higher EMIs on such properties can stress out the borrowers. People who are keen on buying a home should avoid near completion projects until all kinds of doubts about the EMIs are erased. Earlier, VAT and service tax of 5-6% were charged on the sale cost of the property. Now, this gets subsumed into the GST rate of 12%. On first look, the tax incidence under GST might appear to be expensive, making property more expensive. However, under the previous government, a lot of Central and State taxes-Central Excise Duty, VAT, and entry tax on construction material was being paid by the builders, which was then compensated from the consumers. After the implementation of GST, full input tax credit would be charged for offsetting the main rate of 12% that will decrease the effective rate by 5%.
7th July 2017
The rules and regulations concerning the use of Provident Fund to make payments towards EMIs for home loans has been relaxed by the Employees Provident Fund Organisation, revealed a report from NDTV Profit. The ‘Housing for all’ project is what this scheme falls under, and it has a number of caveats. Previously, subscribers were allowed to withdraw provident fund to make payments towards home loans, or purchase land or houses. However, subscribers could only do this once they had made contributions for five years, and the amount of money that could be withdrawn could not exceed more than 36 months’ worth. However, this requirement has been lowered to three years, but subscribers will not be allowed to withdraw money. The report revealed that only the Employees Provident Fund Organisation will give the money to the housing agency, or a government authority, or a lender. The other prominent requirement of the scheme is that the subscriber will have to gain membership into a society that is registered for housing reasons, or a cooperative society, and either of these societies are required to have a minimum of 10 members.
3rd May 2017
State Bank of India, one of the largest banks in India brought down their benchmark lending rate to 9.10%. This means there was a reduction of 0.15% in the benchmark lending rate. By doing it, they reduced the EMIs for all the borrowers.
The minimum lending rate or base rate was 9.25% before. The base rate has been reduced by 0.05%. The BPLR or benchmark prime lending rate has also been reduced from 14% to 13.85%.
10th April 2017