A Home Loan EMI Calculator is an online calculator that lets you calculate your monthly loan instalment amount with ease. All you need to do is enter your preferred loan amount, the interest rate offered, and loan tenure. Upon clicking the “Calculate” button, you will get 100% accurate results pertaining to your home loan EMI.
Monthly amount paid to your Home Loan provider
Your debt repayment schedule in regular instalments over a period of time.
|Year||Principal Paid(A)1||Interest Paid(B)||Total Payment (A+B)||Outstanding Loan Balance||Pre-payment|
|Loan Amount||Rs. 25,00,000|
|Interest Rate||6.70% p.a.|
|Total Interest Due||Rs. 20,44,365|
|Total Amount Payable||Rs. 45,44,365|
The loan amount required to buy or construct your dream home is offered at an attractive home loan interest rate provided you fulfil the eligibility criteria laid down by the respective lender. Here, we have compiled a table wherein the lowest interest rate and the EMI (Equated Monthly Installments) payable by you for every lakh is calculated with above calculator.
|Banks||EMI per Lakh||Interest|
|SBI Home Loan EMI||₹ 662||6.95%|
|HDFC Home Loan EMI||₹ 662||6.95%|
|ICICI Home Loan EMI||₹ 662||6.95%|
|Axis Home Loan EMI||₹ 716||7.75%|
|LIC Home Loan EMI||₹ 659||6.90%|
|CBI Home Loan EMI||₹ 655||6.85%|
|BoI Home Loan EMI||₹ 655||6.85%|
|BoB Home Loan EMI||₹ 655||6.85%|
|Canara Home Loan EMI||₹ 659||6.90%|
|Bank of Maharashtra Home Loan EMI||₹ 669||7.05%|
|Union Bank Home Loan EMI||₹ 672||7.10%|
|DBS Bank Home Loan EMI||₹ 686||7.30%|
|Kotak Home Loan EMI||₹ 692||7.40%|
|IOB Home Loan EMI||₹ 696||7.45%|
|Citibank Home Loan EMI||₹ 699||7.50%|
|South Indian Bank Home Loan EMI||₹ 713||7.70%|
|IDBI Home Loan EMI||₹ 720||7.80%|
|UCO Home Loan EMI||₹ 723||7.85%|
|HSBC Home Loan EMI||₹ 730||7.95%|
|UBI Home Loan EMI||₹ 645||6.70%|
|IDFC First Home Loan EMI||₹ 734||8.00%|
|Federal Home Loan EMI||₹ 744||8.15%|
|Karur Vysya Home Loan EMI||₹ 748||8.20%|
|Dhanalakshmi Bank Home Loan EMI||₹ 751||8.25%|
|Karnataka Bank Home Loan EMI||₹ 758||8.35%|
|Tata Capital Home Loan EMI||₹ 769||8.50%|
|Tamilnad Mercantile Bank||₹ 780||8.65%|
|IIFL Home Loan EMI||₹ 783||8.70%|
|Bandhan Bank Home Loan EMI||₹ 787||8.75%|
|PNB Housing Loan EMI||₹ 794||8.85%|
|Standard Chartered Home Loan EMI||₹ 795||8.86%|
|DHFL Home Loan EMI||₹ 841||9.50%|
Note: The EMI/lakh is calculated after taking into account the following variables - Loan amount - ₹ 1 lakh, repayment tenure - 30 years, Interest rate as mentioned in the table and the processing fee as 0.35 percent
Formula for Home Loan EMI Calculation:EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
E: 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 instalments 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 ₹ 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 yea₹
After you apply the formula to calculate your home loan EMI, the monthly instalment amount comes up to ₹ 27,285.
P = 3,500,000
R = 8.65%
N = 30 years or 360 Months
Interest Rate Applied = 8.65%
Monthly EMI = Rs 27,285
EMI Paid For the Year = Rs 27,285 * 12= Rs 327,419
Calculation of home loan EMI is a simple method using an excel spreadsheet. In order to do so, three variable of a housing loan is utilised, namely, rate of interest, period, and loan amount. It must be noted that the rate of interest should be calculated on a monthly basis.
For example, if the rate of interest is 12%, it should be calculated as 12%/12 = 1%. The period represents the total number of EMI payable.
In order to calculate EMI, click on the “=” symbol, type ‘PMT(the rate of interest, period, loan amount)’, and click enter. The excel sheet will the produce an amount in a negative value. This indicates the cash flow that the borrower will have to incur. This is the EMI that a home loan borrower would have to pay.
For example if your loan amount is ₹ 5 lakh for 2 years at 12% p.a., the formula to calculate EMI is as follows.
=PMT(12%/12, 24, 500000)
There are many advantages of using the EMI calculation tool provided by BankBazaar. They are listed below:
When calculating your EMI, the calculator includes all the parameters that impact it. Let’s take a look at the various factors that impact your monthly repayments:
Your housing loan EMI is usually a fixed amount. But there are certain circumstances under which it can change. Let’s take a look at some of these instances:
Flexible EMIs: If you have opted for flexible EMIs such as in the case of step-up or step-down property loans, then there will be a change in your loan EMIs. In the case of step-up loans, your EMI will gradually increase over the tenure. In the case of step-down loans, your EMIs will decrease as time passes.
Partly Disbursed Loan: In the case of partly disbursed loans, the pre-EMIs will increase with each disbursement.
Loan Prepayment: Prepayments impact your EMIs as well. You can either choose to reduce the EMI for the same loan tenure or reduce the loan tenure and keep the EMIs constant. The latter is more beneficial since you will pay lesser interest.
Rise in the floating interest rate: Whenever the repo rate changes, the floating rate of interest also changes. If the floating rate increases, the lender will normally increase the loan tenure while keeping your EMI the same. If the new tenure exceeds the maximum period permitted, then the bank may increase your EMI.
In some cases, the lender will disburse the loan amount in stages. When this happens, you have to start paying your EMI only when you get the final amount and the whole loan has been disbursed. Till this date, you have to pay only the interest applicable on the partly disbursed amounts. This is known as pre-EMI. Once the loan gets fully disbursed, the pre-EMIs will stop and you have to start paying your regular EMIs.
However, a wiser option would be to opt for a full EMI payment as it ensures that you have already paid down a portion of the remaining loan amount at the time of possession.
Taking a loan to buy a house can be expensive, but it also has certain benefits, especially when it comes to taxes. The government offers tax reliefs via the Income Tax Act, 1961 on the EMIs you pay every year. These are as follows:
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A few days after the state government had ordered the accounts department to supervise the repayment of all loans which had been taken under the House Building Advance scheme (HBA), the department has urged the government departments and also the agencies to submit their self- certification reflecting the compliance.
This month, it had been reported that a lot of the departments had deducted the amount of the EMIs from the employees’ salaries for the repayment of HBA home loans. However, they had failed to deposit these funds with the bank. The government has ordered all departments to be responsible for the repayment of the HBA loan.
25 September 2020
For home loan borrowers, due to the COVID-19 lockdown, banks may offer further EMI deferment on home loans as a part of their loan restructuring. This may happen after 31 August after the moratorium granted by the Reserve Bank of India ends.
The restructuring of loans would be applicable on the loans of which the overall tenure does not extend by more than 2 years, after relaxing the repayment schedule, according to reports.
However, the banks may offer EMI deferment for a few more months if the borrower has suffered a loss of pay during the COVID-19 pandemic. For some cases, to help individuals, step-up EMIs will be allotted which have a lower payout for 2 years to make up for the reduction in salary.
According to sources, banks will not be able to provide the best rates for home loans as an additional provision of 10% will be applicable on restructured loans. Hence, restructured loans will have an interest rate of 30 bps higher than normal.
20 August 2020
As notified earlier, the banks and other lending institutions were earlier provided by the Reserve Bank of India (RBI) to offer a moratorium period for loans and EMIs. As per the latest notification, the moratorium deadline ends on 31 August 2020.
As per a report published in Business Standard, the banking sector is not very sure about the possibility of another extension in terms of the moratorium. As per data sourced from India Today, the banking industry is currently not very keen on extending the moratorium period further for fixed term loans and EMIs. This comes as the banks are of the opinion that another extension might take a heavy toll on the asset quality of the banks. The Business Standard report also mentioned the SBI Chairman Rajnish Kumar has said that the further relaxation and allowance of deferment of payments will not be necessary. He cited the initial estimates of the bank about the deterioration of the bank’s asset quality.
23 July 2020