Home Loan EMI Calculator
How to calculate your home loan EMI online.
What is EMI Calculator
The Home Loan EMI Calculator helps you calculate the loan installment, or EMI, for your home loan. For a home buyer, it serves as a financial planning tool and help you to do better planning. You can set your budget according to this. You can also choose your term by knowing the EMI amount. So most of the customer first want to check the Loan EMI they can pay per month.How to use EMI Calculator ?
To determine your EMI, simply enter the following information in Home Loan EMI Calculator:Loan Amount: Enter the amount of the loan you would like to obtain. Loan Tenure (In Years): Enter the length of time you would like to have the housing loan. An extended tenure contributes to improving eligibilityInterest Rate (% P.A.): Enter the interest rate.Home Loan Amortisation Schedule
What is Amortization Schedule ?
Amortization means spreading out the cost of an intangible asset or a loan over a set period. For tangible assets, it usually means recording the expense in equal amounts over time. When it comes to loans, amortization is the process of paying a fixed amount each month, called an EMI, which covers both the principal and the interest. When you use Home Loan EMI Calculator you can find the amortization schedule details in calculator feature.
Let’s say a person borrows a home loan of 20 lakhs for a tenure of 15 years with an interest rate of 8.5% per annum. The example amortized schedule for this would look as follows:
Month | Principal (Rs) | Interest (Rs) | EMI (Rs) | Balance (Rs) |
Apr | 8,292 | 21,250 | 29,542 | 29,91,708 |
May | 8,350 | 21,191 | 29,542 | 29,83,357 |
Jun | 8,410 | 21,132 | 29,542 | 29,74,947 |
July | 8,469 | 21,072 | 29,542 | 29,66,477 |
Aug | 8,529 | 21,012 | 29,542 | 29,57,948 |
Sept | 8,590 | 20,952 | 29,542 | 29,49,357 |
Oct | 8,650 | 20,891 | 29,542 | 29,40,707 |
Nov | 8,712 | 20,830 | 29,542 | 29,31,994 |
Dec | 8,773 | 20,768 | 29,542 | 29,23,220 |
Jan | 8,836 | 20,706 | 29,542 | 29,14,384 |
Feb | 8,898 | 20,643 | 29,542 | 29,05,486 |
Mar | 8,961 | 20,580 | 29,542 | 28,96,524 |
How to reduce your Loan EMI ?
You can lower your Home Loan EMI by considering a few smart and practical options. Here are the most effective ways explained simply:
1. Increase the Loan Tenure
Choosing an option of a longer tenure spreads the loan payments over more years, which lowers the monthly EMI. However, the total interest paid may increase.
2. Negotiate the Interest Rate
Ask your bank about getting a lower interest rate, especially if you have a good credit score and stable income. After sanction of your loan you can negotiate on your interest rate.
3. Make Part-Prepayments
Paying extra whenever you have some extra money reduces the principal, which directly lowers the EMI or loan tenure. Do part payment yearly once or twice.
4. Refinance or Balance Transfer
Transfer your home loan to another bank that offers a lower interest rate to lessen your EMI burden.
5. Improve Your Credit Score
A higher credit score helps you qualify for better interest rates, which reduces EMI.
6. Choose EMI Restructuring
In case of financial difficulty, you can request your bank to restructure the loan to reduce EMI temporarily.