Home Loan EMI Calculator - Housing Loan EMI Calculator Online India

What is Home Loan EMI?

Home Loan EMI, or Equated Monthly Instalment, is the fixed amount that a borrower pays every month to repay a home loan over a specified period.

Each EMI consists of two parts:

The principal amount, which is the original loan borrowed
The interest charged by the lender.

Using an EMI calculator for your home loan repayment estimates can help you understand your EMI commitments in advance and manage your finances better.

Formula to Calculate Home Loan EMI Amount

The standard formula used in a home loan EMI calculator is:

EMI = [P x R x (1+R)^N] / [(1+R)^N – 1]

Where:

P = Principal loan amount

R = Monthly interest rate (annual interest rate divided by 12)

N = Loan tenure in months

Let’s take an example to better understand this:

Nishant is planning to take a loan of ₹50,00,000 at an 8% annual interest for 20 years (240 months).

First, let’s convert the interest: 8% / 12 = 0.00667

Now, let’s apply the same in the EMI formula:

EMI = [5000000 x 0.00667 x (1+0.00667)^240] / [(1+0.00667)^240 – 1] = ₹41,822 (approx.)

Thus, Nishant will have to pay an EMI of ₹41,822 for his loan.

Carrying out multiple calculations with this formula can be challenging and may even lead to errors. To make the process easier and faster, use a home loan EMI calculator and get EMI estimates within seconds.

What is a Home Loan Amortisation Schedule?

An amortisation schedule is a table that shows how each EMI is split between interest and principal repayment. Over time, the interest portion decreases gradually while the principal portion increases. A home loan EMI calculator can create this schedule automatically based on the details you enter. A quick glance at this schedule can tell you what your repayment will look like throughout the tenure.

Just like how a home loan EMI calculator makes it easier to plan your repayment, having a life insurance or term insurance plan can make it easier to avail a home loan.

How Can IndiaFirst Life Help with Your Home Loan Process?

If you have an active life insurance policy, you can use that as security to avail a loan. You will have to fill out an application form and provide details about the policy to validate your application.

The tenure of such a loan should align with the policy’s tenure. So, if you buy a life insurance plan with a term of 20 years, you can opt for a home loan with a tenure of two decades as well.

However, securing a loan against your life insurance policy comes with its own set of terms and conditions. It is best to reach out to your insurer and get clarification regarding all aspects before proceeding.

Home Loan EMI Basics

Understanding Home Loans

Life Insurance and Home Loans

What does EMI mean?

Answer: An EMI, or Equated Monthly Instalment, is a fixed payment made by a borrower to a lender each month. If you’re trying to understand what an EMI is, it simply refers to a structured repayment method that includes both the interest and the principal portion of the loan. Over the loan tenure, you repay the full amount through EMIs. They are an easy and convenient way of repaying loans as they provide a clear structure to the process. With a home loan EMI calculator, borrowers can easily calculate this monthly payment based on the loan terms.

When do my home loan EMIs start?

Answer

Your home loan EMIs usually begin after the bank/financial institution has fully disbursed the loan amount. The rules may differ in case you have opted for a partial-disbursement loan, where the money is released gradually over time.

In such a case, you may be required to pay pre-EMIs (interest-only payments) until the complete amount is given to you. Once the loan is fully disbursed, you will be expected to make regular EMI payments. A home loan EMI calculator can help you plan this transition more effectively.

How is EMI calculated?

Answer

EMI is calculated using a standard formula:

EMI = [P x R x (1+R)^N] / [(1+R)^N – 1]

Where:

P = Principal loan amount
R = Monthly interest rate (annual interest rate divided by 12)
N = Loan tenure in months

The easiest way to calculate EMIs is to use an online financial calculator like a home loan EMI calculator.

Is the EMI amount fixed?

Answer: It depends on the type of interest rate you have opted for. If the bank offers a fixed interest rate, the EMI amount will be fixed as well. However, if the loan comes with floating interest rates, the EMI amount is likely to fluctuate with changes in the interest rate. A house loan EMI calculator can help you get EMI estimates for a home loan with fixed interest rates.

What is a home loan, and how does it work?

Answer: A home loan is money you borrow from a bank or financial institution to purchase, build, or renovate a residential property. To repay the home loan, you pay EMIs over a fixed tenure. The EMI includes both the principal component of the loan, and the interest charged on it. Before you opt for a home loan, it is best to use a home loan EMI calculator to check EMI estimates, compare loan offers, and understand the repayment in a better way.

What is the maximum home loan that I can obtain?

Answer: A financial institution is likely to provide a loan amount that is 75-90% of the total property or the construction cost. The rest will have to be contributed by you.

Can I get approval for a home loan while I decide which property I should purchase?

Answer: Yes, lenders offer pre-approved home loans based on your income, credit score, and overall financial position. These loans are generally given prior to your selection of the property and can be availed of within six months from the date of sanction.

What is part/subsequent disbursement of a home loan?

Answer

It refers to the loan being released in gradual instalments for under-construction properties. Each release of the loan is called a ‘part’ or ‘subsequent’ disbursement. The repayment for these loans can differ from that of a regular loan, at least during the period when the loan is not fully disbursed.

What are the different types of home loans available in India?

Answer

In India, a variety of home loan options are available to meet different housing needs.

Home Purchase Loan: You can opt for this loan to buy a ready-to-move-in apartment/row house/bungalow, etc. or an under-construction residential property.

Home Construction Loan: This kind of loan provides funds to build a house on an existing plot.

Plot Loan: This provides financing to purchase land where you plan to build a home.

Home Improvement Loan: This is a smaller-budget loan that can help you cover costs related to renovation, painting, repairs, or adding fixtures and furnishings.

Home Extension Loan: If you have plans to expand your existing home, such as adding new rooms or floors, you can opt for this type of loan.

Balance Transfer Loan: This type of loan enables you to transfer an existing home loan to a new lender offering a better interest rate. It is best to check the new interest rate with a home loan EMI calculator before going for a new lender.

Top-up Loan: An additional loan taken over your current home loan, useful for extra expenses like higher education or personal needs.

Pre-approved Home Loan: This loan is given prior to your property selection, based on your income and credit profile.

NRI Home Loan: Specially designed for Non-Resident Indians purchasing property in India, this loan comes with different documentation and repayment plans.

Before you opt for any of these loans, it is advisable to use a financial calculator to get a clear idea of your repayment commitments. A home loan EMI calculator, in particular, can be of great help in helping you budget for loan purposes.

How can life insurance protect your home loan?

Answer

When you take a home loan, your family could be at risk of financial burden if something happens to you. Buying life insurance, especially term insurance, can protect against this risk.

When you buy a life insurance policy aligned to your loan amount and tenure, the payout in the event of your death goes directly to your nominee or lender. This ensures the outstanding loan is repaid as needed and prevents your family from losing the home or facing EMI obligations.

Unlike loan protection insurance, which directly settles the lender, life insurance provides flexibility: the excess payout can be used for your family's other financial needs, like children's education, daily expenses, or savings.

By adding life insurance or term insurance to your home loan planning, you ensure your loved ones can stay in their much-loved home without the stress of debt. It gives peace of mind, financial security, and a safeguard for both borrower and lender throughout the loan tenure.

What is a Home Loan Calculator?

Estimate EMIs instantly.

Compare different loan tenures and interest rates.

View total interest outgo.

Plan your finances better and more accurately.

What is Home Loan EMI?

How Can A Home Loan EMI Calculator Help You?

Quick EMI Estimates

Better Budgeting

Compare Loan Options

Understand Interest Outgo

Helps in Choosing the Right Tenure

Error-free Calculations

Easy to Use

Formula to Calculate Home Loan EMI Amount

How to use the IndiaFirst Life Home Loan EMI calculator?

What is a Home Loan Amortisation Schedule?

How Can IndiaFirst Life Help with Your Home Loan Process?