In words:
For home loans, loan against property and business loans. A 1% lower rate can save lakhs; see it on the right.
There's no pressure. We'll just see if we can help.
An estimate on a reducing-balance basis. Your actual EMI depends on the lender, fees and your profile.
See year-by-year repayment
| Year | Principal paid (Rs) | Interest paid (Rs) | Balance at year end (Rs) |
|---|
EMI questions, answered
How is EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. This calculator uses the same reducing-balance method banks use.
How much does a 1% lower interest rate save?
More than most people expect. On a Rs 2 crore loan for 25 years at 7%, a rate just 1% lower saves about Rs 12,500 every month, or about Rs 37.5 lakh in interest. The calculator shows the saving for your own numbers.
How much EMI will a bank allow on my income?
Banks look at all your EMIs together against your take-home income. For higher incomes, many lenders allow up to about 75% of take-home for all EMIs combined; the limit varies by lender and profile, which is why the right lender matters as much as the rate.
Is the EMI the same for a home loan, loan against property and a business loan?
The formula is the same; the rate and tenure differ. Home loans usually have the lowest rates and longest tenures, loan against property is a little higher, and unsecured business loans are higher still with shorter tenures.
Does a longer tenure reduce my EMI?
Yes, but you pay more interest overall. Use the year-by-year table to see how much of each year's payments goes to interest.
Want that lower rate?
In 20 minutes we'll tell you how a bank is likely to read your loan application, and what could bring your rate down.
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