Home Loan EMI Calculator

What is Home Loan EMI Calculator?

A home loan is a type of secured loan that helps individuals finance the purchase of a home and pay the borrowed amount in monthly installments. It is offered by banks and NBFCs who take the property as collateral for the loan. A home loan calculator allows you to calculate the EMI on your home loan and helps you make an informed decision.

How Home Loan EMI Calculator Works?

A house loan calculator is a financial planning tool that helps you in the calculation of EMI, interest amount payable, and the total home loan amount. 

The calculator requires a few inputs to work:

Borrowed Amount: The amount of loan that you want to borrow for the purchase of the house.

Loan Tenure: The amortization period for the repayment of the home loan.

Rate of Interest: The interest rate that the lending institution will charge on the loan.

The Home loan EMI calculator will use the inputs to calculate and show EMI amount, total payable interest, and total repayment amount. You can also change the inputs and the home loan interest calculator will show you the results accordingly.

Formula Used in Calculation of Home Loan EMI

The formula for home loan EMI is 

P x R x (1+R)^n/{(1+R)^n-1} 

where,

• P is the principal loan amount borrowed
• R is the applicable monthly home loan interest rate
• N is the total loan tenure in months

Illustration With an Example

Suppose Gaurav took a home loan of Rs 60,00,000 for 20 years at an interest rate of 6 percent per annum.

Here,

R (monthly interest rate) = 6/(12x100) = 0.005

N (loan tenure in months) = 20 x 12 = 240 months

Your EMI will be: 60,00,000 x 0.005 x (1+0.005)^240/238 = Rs 42,986

Total interest payable = Rs 43,16,606

Total payable amount (principal + interest) = Rs 1,03,16,606

Calculation of home loan EMI can be complex and time-consuming as it requires a number of inputs and complicated calculations. A home loan interest rate calculator does all the work and shows you the EMI, interest payable, and total payable amount within a moment.

How to Use Home Loan EMI Calculator?

A home EMI calculator is an easy-to-use online tool. You need to follow a few simple steps to use the online home loan calculator.

• Choose an online house EMI calculator. There are plenty of options available online to choose from. INDmoney’s home loan EMI calculator is fairly simple to use and calculates your loan EMI instantly.
• Enter the amount of loan you want to borrow from the lender.
• Enter the repayment period (in years) and the rate of interest charged by the lender.
• The home loan calculator will show the results immediately.
• You can also change the inputs and the calculator will show the EMI, interest payable, and total payable amount accordingly.

Benefits of Using INDmoney’s Home Loan EMI Calculator

• Effortless Planning: Our online home loan EMI calculator simplifies housing finance planning. It provides crucial details like monthly installment (EMI), net interest payable, and the total amount due.
• Time-Saving: Say goodbye to manual calculations. With a few simple inputs, our calculator delivers instant results, saving you valuable time and effort.
• Comparison Made Easy: Evaluate home loan offers from various lenders by calculating EMIs at different interest rates. This tool empowers you to secure the best financing deal for your dream home.
• Optimal Loan Tenure: Determine the ideal loan tenure based on your repayment capacity. Easily assess your ability to repay by considering your monthly income, expenses, and savings.

Using INDmoney’s Home Loan EMI Calculator ensures that you make informed decisions while simplifying your housing finance journey.

Home Loan Interest Rates

Home loan interest rates in India play a pivotal role in the financial landscape, significantly influencing the affordability and feasibility of homeownership. These rates vary across banks and financial institutions, often impacted by changes in the country's economic conditions and government policies. Keeping a close eye on these rates is essential for anyone aspiring to own a home. By using our online Home Loan EMI Calculator, you can effortlessly assess how these rates affect your monthly installments and overall repayment

HDFC Home Loan Interest Rate

HDFC Home Loans provides affordable options for eligible borrowers, offering interest rates that start at just 8.60% per annum. You can begin your home loan journey with an EMI as low as Rs. 762* per lakh for loan tenures of up to 30 years.

SBI Home Loan Interest Rate

State Bank of India offers home loans at attractive rates starting from 9.15% p.a., with a flexible repayment period of up to 30 years.

The processing fee is just 0.35% of the loan amount (Min. Rs. 2,000; Max. Rs. 10,000) plus taxes. Women borrowers enjoy a special 0.05% interest concession on SBI Home Loans.

Determine your Home Loan Interest Rate

When you apply for a home loan, it's crucial to grasp the elements that shape your eligibility and the interest rate you'll receive. Lenders, whether banks or Housing Finance Companies (HFCs), conduct a meticulous evaluation considering your credit history, repayment capacity, income, and property specifics. It's noteworthy that lower interest rates often require stricter eligibility criteria.

Here are the key determinants lenders take into account:

Credit Score: This reflects your credit history and financial track record. A high score, usually 750 or above, signifies responsible credit management. It can lead to lower interest rates.

Income and type of Employment: Stable employment, especially in government, PSUs, or reputable private firms, can lead to lower rates. Irregular or insufficient income might result in higher rates.

Type of Home Loan: Different home loan types have varying rates. Regular home loans have standard rates, while specialized loans may have higher rates.

Loan Amount: Smaller loans, especially up to Rs. 30 lakh, typically carry lower interest rates. Making a substantial down payment can further reduce rates.

Concession for Women: Some lenders offer lower rates for women borrowers, making joint home loans with the wife as the primary applicant an attractive option for couples.

Type of Interest Rate: Fixed-rate loans maintain consistent EMIs, while floating rates fluctuate with market changes. Fixed rates usually come with slightly higher interest rates.

Understanding these factors can help you secure a favorable home loan interest rate tailored to your financial circumstances.

Home Loan Eligibility

To determine your eligibility for a home loan, you'll find that the requirements are quite similar to those for other types of bank loans. 

Here are the basic criteria that need to be met:

Nationality: You can be an Indian resident, a non-resident Indian (NRI) with an Indian passport, a person of Indian origin (PIO) with a passport from another country, or an overseas citizen of India (OCI).

Age: Typically, you should be at least 21 years old to apply for a home loan. Co-applicants can be 18 years or older.

Financial Status: You can be either a salaried individual or self-employed.

Creditworthiness: Lenders look for a clear and positive credit history, including a good credit score.

Existing Liabilities: Your financial obligations, such as ongoing loans or credit card debt, are taken into account.

Meeting these criteria is crucial when applying for a home loan, as they play a significant role in determining your eligibility and the terms of your loan.
 

Finance the Purchase of Your Dream Home

Owning a home is a dream of many but the expenses associated with it can come heavy on the pocket. A home loan helps you to finance the purchase of your dream home easily. You can borrow a home loan and purchase a house whenever you want to and repay the loan in small monthly installments. 

A home loan helps you in a number of ways:

A Type of Investment

Buying a house not only serves the purpose of your living but is more of a type of investment. Your house property has a value that in general, increases over the year. So, in other words, you are actually making an investment by taking a home loan.

Low Interest Rate

You can get a home loan at as low as 6 percent. This helps you to lessen the financial burden from your shoulders. Now, with the home loan EMI calculator, you can easily compare the home loan offers by different lenders and get the best deal possible.

No Additional Collateral Required

One of the best benefits of a home loan is that you do not have to pledge any extra collateral other than the home (for which the loan is taken). This also saves you from taking over-expensive unsecured loans.

Tax Benefits

There are a number of provisions in the Income Tax Act of India like Section 24(b), 80C, 80EE, and 80EEA that allow you to claim home loan interest deductions from your taxable income. You can save up to 3.5 lakhs annually by claiming exemptions according to your home loan EMI and annual taxable income.