Loan Amount
₹10,000
Rate of Interest (Annual)
5%
Loan Tenure
3 Months
Monthly EMI:
Principal Amount:
Total interest:
Total amount:
EMI or Equated Monthly Installment is a fixed monthly payment that needs to be made by the loan borrower for the repayment of their home, car, personal, or any other loan. An EMI includes both your principal and the interest component, through which the entire loan amount is paid off within the stipulated number of months or years.
An EMI can be of two types: interest EMI and no-cost EMI. While most loans have interest levied on them like is usual, certain no-cost EMI plans are offered on e-commerce platforms such as Amazon, Flipkart, and Reliance Digital wherein you can purchase a product using EMI plans that have no interest levied on them. In such cases, usually, the retailer and the bank share the interest load as marketing expenses.
The online monthly BankKaro Home Loan EMI calculator is easy to use. You can calculate your EMI and total repayment amount within a few seconds.
Your EMI or Equated Monthly Installment is dependent on a lot of factors including the ones mentioned above. You will need to understand them in detail before applying for any kind of loan.
The annual interest rate is something that you need to observe carefully before applying for a new loan. Usually, secured loans like home loans and vehicle loans have lower interest rates in the range of 6-10%. On the other hand, unsecured loan interest rates for personal loans could be in the range of 10-25%, and for credit cards, even as high as 45%.
The loan tenure is dependent on your repayment capabilities and the type of loan. Usually, large ticket loans like home loans and car loans have a higher loan tenure of more than 60-70 months. In the case of personal loans, the loan tenure begins from as low as 3 months.
Loan-to-Value (LTV) Ratio is one of the most important factors that determine your EMI. This is the percentage of the property’s value that is eligible to be availed as a home loan. It is an indicator of the level of risk the lender/ bank is willing to take when approving your loan. Thus, the lower the LTV ratio, the higher can be your rate of interest and thus your due amount.
In a home loan, the location of your property is crucial in determining your interest rate and your due amount. The rates are lower when the property is in a developed society with premium amenities, and goes down as the level of the locality and society dip. This is because value of properties in developed societies tend to rise and are thus low risk for the lender.
BankKaro uses this formula to calculate the total amount and EMI amount for your loan. EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P stands for the loan amount or principal, R is the interest rate per month [if the interest rate per annum is 11%, then the rate of interest will be 11/(12 x 100)], and N is the number of monthly instalments.
There are several advantages of using the BankKaro EMI calculator:
Apart from home loan EMI calculator, BankKaro also has a Personal Loan EMI calculator, Vehicle Loan EMI calculator, Loan Against Property EMI calculator, and more.
The EMI amount on your loan is calculated based on three major factors: Loan Amount – the amount of loan you avail; Rate of Interest – the annual interest rate applicable on your loan; and Loan Tenure – the months and years the loan has been availed for.
An EMI calculator is a tool that allows you to see your monthly EMI and the total amount to be repaid based on your loan amount, interest rate, and loan tenure.
The EMI calculator works using a simple formula which takes into consideration factors like your loan tenure, loan amount, and interest rate to find out your interest amount and the total amount payable in real time.
Using the BankKaro monthly EMI calculator, you can know in advance the amount of EMI you will be paying for your personal loan, car loan, home loan, or any other loans. This will allow you to go for an amount and tenure that suits your capability to repay.
While principal in an EMI is the amount that you borrowed, broken up into equal installments, the interest element depends on the bank and the type of loan.
Yes, the calculators for home, car, and personal loans largely work on the same formula that we have implemented in our online EMI calculator.
Ideally, if the details entered are accurate, the EMI amount shown by the calculator should be the same as what the bank will ask you to pay. However, floating interest rates can change your EMI amount or loan tenure during the repayment period.
In a floating interest plan, the loan EMI can change over the loan tenure. On the other hand, the loan EMI is fixed in a fixed interest plan.
Preclosure of a loan is usually subject to a penalty charge. Before pre-closing your loan before the end of its tenure, always calculate whether the loan interest payments will be less than or more than the penalty being charged.
All loan interest rates are dependent upon the repo rate issued by the Reserve Bank of India. With changing market conditions, this repo rate goes up and down affecting your interest rates. Thus, most loans in the market have a floating rate of interest that goes up and down as market interest rates.
If you fail to make an Equated Monthly Installment (EMI) payment, the response differs from bank to bank. You might be charged penalties, higher interest rates, or even get a credit default charge.
If you fail to make an Equated Monthly Installment (EMI) payment, the response differs from bank to bank. You might be charged penalties, higher interest rates, or even get a credit default charge.
BankKaro uses this formula to calculate the total amount and EMI amount for your loan. EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P stands for the loan amount or principal, R is the interest rate per month [if the interest rate per annum is 11%, then the rate of interest will be 11/(12 x 100)], and N is the number of monthly instalments.
There are several benefits of using a home loan EMI calculator. These include ease of calculation of your upcoming home loan EMI, exact amount extraction, and the ability to flexibly view your changing EMI with modifications to tenure, amount, and interest rate.
Factors such as Loan-to-Value (LTV) Ratio, loan tenure, location of property, and interest rates affect the due amount of your home loan EMI. Please make sure you take into consideration all of them before making the purchase.
Flexible home loans are the ones where the interest rate changes as per RBI’s central bank interest rate. It reduces and increases several times during the tenure of repayment. On the other hand, fixed home loan EMIs work on a fixed interest rate set during the start of the loan tenure. However, in most cases, fixed home loan interest rates are steeply higher given the risk of foregone future benefits to the lender.
A home loan pre-EMI is the EMI amount that only consists of the interest amount of your loan. It does not include your principal amount. The lender may allow a home loan pre-EMI when your house or apartment is under construction. It allows you to pay off a certain amount with lower EMI amounts than usual. However, the lender will charge full EMI amount once the house has been constructed.
The Section 80 EEA of the Income Tax Act in India provides income tax benefits up to an additional Rs 1.5 lakhs only on home loan interests paid during the financial year. This is over and above benefits attained under Section 24(b).
Documents required to avail a home loan include ID proof, address proof, photographs, application form, proof of income, property documents, and salary certificate/ IT returns.
The EMI for a Rs 20 lakh home loan for 20 years tenure depends on the rate of interest, and whether the loan has fixed or flexible interest rate. To check the exact EMI amount, please use our home loan EMI calculator.
You can use several payment methods to pay your home loan EMI. Options like cheque, DD, netbanking, debit cards, credit cards, prepaid wallets, UPI, and more.
The EMI for a Rs 30 lakh home loan depends on the rate of interest and loan tenure, and whether the loan has fixed or flexible interest rate. To check the exact EMI amount, please use our home loan EMI calculator.
To reduce your home loan EMI, you can trying increasing your EMI amount, adding an extra EMI each year, transferring your loan to a new lender with a possibly lower interest rate, shift from fixed to flexible interest rate, or increase the tenure.
While salary is a key component in determining sanctioned home loan amount and interest rate, the biggest factor is the value of the property and the Loan-to-Value (LTV) ratio.