What is an EMI?

Loan amount, tenure and interest rate are the three key parameters of a loan and these vary in case of different loan providers. EMI applicable to a loan varies according to all these three parameters. Therefore, before choosing a particular loan, it is very important to have an understanding of these three parameters and how do they relate to the loan EMI.

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How are Loan EMIs Calculated?

The Home Loan EMI Calculator will immediately display the EMI's applicable for the loan tenure after the amount, rate, and tenure for the home loan are entered. Additionally, keep in mind to consult the amortisation table for a year-by-year schedule of payments throughout the loan term. To determine the term and repayment schedule for your loan, use the Loans4you.in home loan EMI calculator.

Loan Amount	5 Years EMI (P.M)	10 Years EMI (P.M)	15 Years EMI (P.M)	20 Years EMI (P.M)	25 Years EMI (P.M)	30 Years EMI (P.M)
10 Lacs	₹ 20,062	₹ 11,896	₹ 9,299	₹ 8,087	₹ 7,422	₹ 7,026
15 Lacs	₹ 30,093	₹ 17,844	₹ 13,948	₹ 12,130	₹ 11,134	₹ 10,540
20 Lacs	₹ 40,123	₹ 23,793	₹ 18,597	₹ 16,173	₹ 14,845	₹ 14,053
25 Lacs	₹ 50,154	₹ 39,741	₹ 23,246	₹ 20,216	₹ 18,556	₹ 17,566
30 Lacs	₹ 60,185	₹ 35,688	₹ 27,896	₹ 24,260	₹ 22,267	₹ 21,079

Rate Of Interest @7.55%*.

What Factors Affect Your Home Loan EMI?

When calculating your EMI, the calculator includes all the parameters that impact it. Let’s take a look at the various factors that impact your monthly repayments:

1. Principal: The principal is the loan amount you initially borrow from the lender. It is directly proportional to your EMI. Higher the loan amount, higher the EMI.

2. Interest Rate: The interest rate is what you pay for borrowing the loan. In short, it shows you the cost of your loan. It differs from one bank to another. The higher the interest rate, the higher the EMI will be. Finding a lender that offers you the lowest interest rates can help you lower your EMIs. The lower the interest rate, the lower the total cost of your loan will be.

3. Tenure: The time you take to repay the amount you borrow is called tenure or the period of the loan. The tenure is inversely proportional to your EMI. The longer the loan tenure, the lower your EMI. The loan tenure is determined based on your age at the time of borrowing and your retirement age. The longest loan tenure offered banks in India is 30 year.

4. Processing Fee: This value is a percentage of your loan amount or a minimum or maximum fee decided by the lender. It is the fee that the bank charges to process your loan application. You can know about this amount from your loan documents. At least a part of this fee will be payable at the time of application. And your lender may not refund this amount even if your application is rejected.

5. Prepayments: As mentioned earlier, making prepayments on your property loan can help you reduce the outstanding principal. This, in turn, reduces your interest charges. And both together contribute to reducing your EMIs if you prefer to keep the tenure constant.

What are the Tax Benefits of Paying Home Loan EMIs?

Taking a loan to buy a house can be expensive, but it also has certain benefits, especially when it comes to taxes. The government offers Tax reliefs via the Income Tax Act, 1961 on the EMIs you pay every year. These are as follows:

1. Section 80C: You can claim a tax deduction of up to ₹ 1.5 lakh every year on the principal amounts paid towards your property loan.

2. Section 24: Under this section, you can claim a deduction of up to ₹ 2 lakh on the interest component you pay each year.

3. Section 80EE: Under this section, you can claim an additional interest amount of up to ₹ 50,000 per year. This is over and above the amounts mentioned in Sections 80C and 24. This deduction is subject to certain terms and conditions.

F.A.Q

What is a Home Loan Amortization Schedule?

Though the EMIs remain largely uniform throughout the tenure of their loan, the amounts repaid are credited towards the principal and interest to be repaid. Typically the initial instalments contribute more towards the interest amount with later instalments going towards the principal. An amortization schedule provides the break-up of these amounts repaid towards principal and interest along with their respective balances through every year of the loan.

Simply put, an amortization schedule is the road map towards the repayment of your home loan denoting the milestones and the ideal points you should be at through the cycle.
Who can apply for a home loan?

Salaried individuals (working in government and private sector) Professionals (i.e. doctors, engineers, dentists, architects, chartered accountants, cost accountants, company secretary, management consultants, etc.) Self-employed in business and filing Income-Tax Returns Individuals over 21 years of age and ideally not over 60-65 years.
When will my home loan EMI be due?

Your EMI will be due on a fixed date each month. This date will be notified when your loan is disbursed.
In how many installments can you disburse the loan to me?

EMI's begins from the month subsequent to the month in which disbursement of the loan is done. For loans for under-construction properties EMI usually begins after the complete home loan is disbursed but customers can choose to begin their emi’s as soon as they avail their fist disbursement and their emi’s will increase proportionately with every subsequent disbursement.For resale cases,since the whole loan amount is disbursed in one go,emi on the whole loan amount start from the subsequent to the month of disbursment
How do I repay a Home Loan?

For your convenience, HDFC offers various modes for repayment of the home loan. You may issue standing instructions to your banker to pay the installments through ECS (Electronic Clearing System), opt for direct deduction of monthly installments by your employer or issue post-dated cheques from your salary account.
What factors affect your home loan EMI?

Factors affecting your home loan EMI are:
Loan Amount: Higher the amount borrowed, the higher will be your home loan EMI, provided the tenure and the interest rate remain fixed.
Interest Rate: Higher home loan rate leads to higher home loan EMI as well as the total interest cost.
Loan Tenure: Longer tenure leads to lower EMI but higher total interest payable as compared to a shorter tenure for the same loan.
How can I pay my home loan EMI?

To pay your home loan EMIs, you can: Issue Standard Instructions (SI) to your bank Submit post-dated cheques to your lender Opt for direct deduction of monthly instalments by your employer
Note: The different EMI payment options mentioned above may or may not be available with all the lenders.
Can I change my home loan EMI date? If yes, how can I do it?

To change your housing loan EMI date, speak to your loan officer or the customer care representative regarding the same. As the process to initiate this change differs significantly from one lender to another, it is better to speak with the bank representatives to know the right procedure.
What is pre-EMI in home loan?

Pre-EMI in housing loans refers to monthly payments that comprise only the interest component of your home loan. In case of Pre-EMI, you are not repaying your principal amount. You are only paying home loan interest. Lenders usually give you the choice of Pre-EMIs when the pledged home or apartment is under construction.
Is GST applicable to home loan EMI?

No, GST (Goods and Services Tax) does not apply to home loan EMI. However, it is applicable on several other home loan charges such as processing fees, late payment charges and prepayment charges.