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Home Loan EMI Calculator

Housing Loan Amount
1 L 5 Cr
Interest Rate %
1% 20%
Loan Tenure Years
1 Year 30 Years
 
Monthly Instalment:
5,000
Total Interest Payable
50,000
Total Payment
60,000

About Home Loan

calculate your home loan emi using home loan emi calculator

Everything that you purchase requires you to do a proper financial planning. Decisions taken in haste without looking into financial aspects can land you in a big financial trouble. Hence, you need to have a proper financial plan in place to make a wise decision. Though buying a home in India has become easy with the advent of home loans, you need to do good amount of planning as borrowing the hefty sum is easy but not knowing how to repay it could be troublesome. And this is when a home loan EMI calculator comes into play.

What is Home Loan EMI Calculator?

A home loan EMI calculator helps you make an informed decision about the sum of EMI you will have to shell out each month to pay your home loan. It is important to use the Home Loan EMI calculator to understand the EMI i.e. the Equated Monthly Instalment effective on your home loan on the basis of the loan tenure, loan amount and the interest rate. A home loan calculator helps you assess your repayment capability before you actually opt for a home loan from the bank. It thus prevents you from financial crisis by helping you estimate your home loan EMI amount.

You can use the home loan EMI calculator even prior to applying for the home loan to get accurate results and also assess your repayment capacity.

The InvestOnline home loan EMI calculator provides you with an approximate that is to be paid towards your home loan with a complete breakup of the repayment process.

What is Home Loan EMI?

Home loan EMI is the sum of the money a borrower has to pay to bank on a fixed date each month as the repayment of the loan taken.

EMI stands for equated monthly installments and is the amount calculated on the basis of the principal amount purchased and the interest applicable on the same.

EMI = Principal amount + Interest on principal amount.

How is the EMI of the home loan calculated?

A home loan EMI is calculated on the basis of the below formula:

Here, E stands for EMI, P means for principle, R means rate of interest every month. N indicates the tenure of loan. The monthly EMI amount changes with time and less interest is to be paid towards the principal amount.

The home loan EMI calculator comes to your rescue when you are planning to buy a loan for your dream home as manual calculation of EMI is a tedious process. The home loan EMI calculator gives you instant results, thereby saving your time and effort and also helping you plan your finances in a better way.

Home Loan Eligibility and Documents

It is important for the home loan applicant to meet the below eligibility requirements

  • Employment: whether salaried or self-employed, a home loan applicant should have a minimum years of work experience to avail a home loan from a bank. The minimum work year requirement differs from bank to bank.
  • Credit score: This is an important factor that is considered while issuing loan to a home loan candidate.
  • Income: the home loan applicant should have an income as prescribed by the lender. This factor differs from bank to bank and varies in case of self-employed and salaried individuals.
  • Age: The minimum age at which an applicant can apply for a home loan is 21 years.
  • Home loan documents are important to be submitted
  • Last 6 months bank statement has to be submitted
  • Age and address proof documents too have to be submitted
  • Applicable processing fee has to be paid

Documents required for applying for a home loan

  • Last 6 months salary slip has to be submitted if the applicant is a salaried individual
  • Form 16 has to be submitted by salaried individuals
  • 3 years income tax returns certificate has to be submitted by self-employed individuals

Types of Home Loans Available in India

Different types of home loans available in India are:

  • Balance transfer loans: This type of loan can be availed by an individual who wishes to transfer his existing home loan from one bank to another. This loan is usually availed when low interest rates are offered by other banks.
  • Home improvement loans: Getting a home improvement loan can be a smart choice if a homeowner is thinking about renovating or extending the existing property.
  • Home Purchase loan: This type of loan can be availed to purchase an existing property like a row-house of a flat. This type of loan entitles you to receive tax benefits as per the Income Tax Act, 1961.
  • Home construction loan: This loan can be availed if you wish to carry out a construction on a piece of land that you already own.
  • Land purchase loan: This loan can be availed if you are thinking of buying a land for the purpose of investment or construction.
  • Loan against property: This type of loan can be availed by mortgaging your existing property.
  • Reverse home loan: This type of loan can be availed by senior citizens by mortgaging their house with the lender to receive periodic payments.

Key benefits of InvestOnline’s Home Loan EMI Calculator -

Here are a few advantages of using InvestOnline’s home loan EMI calculator:

Saves time:

InvestOnline’s home loan EMI calculator helps you compute your EMI in just a few seconds, thus saving your time from the lengthy, time-consuming process. The moment you enter the required details, you get all the information about your home loan EMI calculation.

Get accurate results:

There are high chances of getting a wrong home loan EMI amount when you do the calculation manually. And this is where the home loan calculator comes to rescue, saving you from wrong calculations that can cause any financial trouble in the future. Hence, it is always a wise idea to use the InvestOnline home loan calculator to get accurate results.

Plan your finances in a better way:

You can easily gauge your financial capacity using the home loan EMI calculator. By just adjusting the required details you can change the principal amount, tenure and even the interest rate. You can calculate your EMI by changing these aspects and then zero down on an amount that meets your requirements. You can use the home loan EMI calculator as many times as you want to find the right home loan for yourself.

Easy to use:

InvestOnline’s home loan calculator is easy to use and does not require you to go through tough steps or any training. All you need to do enter your housing loan amount, interest rate and loan tenure. We have quite a user-friendly interface that does not require too much of back and forth and just by entering the above information, the home loan EMI quotes are displayed instantly.

How to use InvestOnline’s Home Loan EMI Calculator?

InvestOnline’s home loan EMI calculator computes the EMI amount as per the details entered.

It requires a home loan candidate to fulfill the below details.

Loan amount: This is the sum of the money that an individual needs to borrow from the bank to finance the purchase of his dream house. This amount is called the principal amount on which the bank home loan interest rate is levied. This amount is given by the bank depending on the eligibility of the applicant.

Interest rate: This is the rate of interest which is applicable on the amount of the loan taken. The interest rate varies from bank to bank and also depends on the employment and income of the individual. Home loan can be obtained on a fixed or floating interest rate, depending on the individual’s choice.

Tenure: This is a number of years allotted to the loan borrower to make the repayment. It is important to know that home loans are long-term tenure loans and can be purchased forever 20-30 years. You can choose the home loan tenure as per your requirement. However, it is important to remember that longer the tenure, the more the interest you will have to pay.

To use the InvestOnline home loan EMI calculator, you need to do the following:

  • Visit the website
  • Click on tools and research
  • Click on home loan EMI calculator
  • Enter the housing loan amount, interest rate and loan tenure
  • The results will then be displayed on your left, giving you an idea of how much EMI you will have pay per month, the interest charged on the principal amount and the total amount you are liable to pay to the financer.

Note: As a thumb rule, a lending institution will apply up to 65% of monthly earnings for EMI payments towards a housing Loan.

InvestOnline.in does not subscribe to this view and suggests limiting the EMI to a maximum of 40% of the monthly earnings, as a 65% outgo may leave the borrower financially stretched to meet other investment goals as well as run a smooth family life.

FAQs on home loan EMI calculator

Can I enjoy tax benefits on a home loan?

Yes, as per Section 80C of the Income Tax Act, 1961.

Can home loan be availed only for buying a new home?

Home loan can also be availed for construction of an existing property, extension of an existing property or for renovating an existing property.

Is home loan calculator trustworthy?

Yes, home loan calculator is trustworthy.

Which is the best home loan EMI calculator in India?

Every bank and investment portal today offers you with a home loan EMI calculator that functions as per the same formula. You can calculate the EMI of your home loan from the calculator you prefer.