Home Loan EMI Calculator

Home loan repayment refers to the process of paying back your entire loan (principal plus interest) to the lender over the agreed-to timeframe. Your repayment primarily depends on the selected tenure and the timely payment of your Equated Monthly Instalments (EMI). Your EMI amount depends on the loan amount, the tenure chosen, and the home loan interest rate.

To repay your loan earlier than planned, you will need to make part prepayments or completely foreclose the loan with one lump sum payment. In case you have surplus funds and choose to become debt-free sooner, use our home loan foreclosure calculator to know the sum payable. This is important as a home loan is a sizable sum, which necessitates planning and research.

There are several ways in which borrowers can reduce their home loan EMIs, with Bajaj Finserv. Eligible applicants who meet the home loan criteria can benefit from lower interest rates and longer tenure – bringing down their total cost of borrowing. Here are a few ways to help reduce home loan EMIs:

• Scale up your down payment amount
• Focus on boosting your credit profile and CIBIL score
• Ensure maximum repayment capacity
• Pay off all pending dues and obligations
• Apply with a co-applicant to enhance your home loan application
• Select the right property that passes the lender’s verification

You can also avail of a home loan balance transfer and transfer your pending home loan balance to Bajaj Finserv and repay the rest of your loan amount at a reduced EMI.

An error-free and easy way to calculate interest on your home loan is by using the home loan EMI calculator. All you must do is open the home loan interest rate calculator tool available on the Bajaj Finserv website and enter the fields such as the interest rate, principal amount, and tenure. When you enter all the values correctly, you will not only find out the amount you will pay as interest but also the EMIs and the total loan payable by the end of your tenure.

The part-prepayment facility on your home loan helps you to reduce your home loan EMIs. By making part-prepayments, you can save substantially on the overall interest payment, as you repay the full amount well before the end of the repayment tenure and you can calculate it through home loan prepayment calculator.

Existing home loan borrowers and new ones all have the same question, which is – what will bring down the cost of borrower faster – smaller EMIs, or a short tenor? There are several points to consider while making that choice.

A home loan is a sizeable financial commitment and taking on one could mean that you will be repaying the loan amount for almost 25 to 30 years of your life. While the home loan repayment is still feasible and can continue along with your other financial developments, one can choose to repay their home loan faster, if their budget and repayment capacity allows for it. Here are two ways to do it:

The amount you pay as home loan EMI is made up of the home loan principal and home loan interest in parts. However, where you stand in your repayment tenure also plays a role in deciding how much of the home loan EMI is composed of the principal amount and how much is the home loan interest.

If you wish to see your EMI break-up, you can do so in two ways:

• Manual calculations
• Home loan EMI calculator

Manual calculations have a wider margin of error, as the formula is complex, and with bigger numbers, one may make mistakes in the calculations. Here is the formula to calculate the same:

Interest component = P x R

Where,

P is the pending principal loan amount

R is the home loan interest rate

And then, you can subtract the interest amount out of the EMI, to arrive at the principal component.

To complete these calculations without any errors, make use of an EMI calculator and get error-free results in seconds.

Your home loan Equated Monthly Installments (EMIs) start from the month following the disbursement of the loan amount. The exact date depends on your lender’s terms and conditions.

If your loan is disbursed in full, the EMI payment begins from the next month. However, if the loan is disbursed in parts (such as in under-construction properties), you may need to pay pre-EMI interest on the disbursed amount until full disbursement. Once the entire loan amount is disbursed, your regular EMI payments commence as per the agreed schedule.

An EMI calculator simplifies home buying planning by providing instant calculations of Equated Monthly Installments (EMIs) based on loan amount, interest rate, and tenure. This allows prospective buyers to assess affordability, plan budgets accurately, and explore various loan options before committing to a purchase. By offering quick insights into repayment amounts, an EMI calculator aids in making informed decisions, ensuring that borrowers choose home loans that align with their financial capabilities and goals.

Here are steps to calculate:

1. Open Excel and select a cell to display the EMI.
2. Use the formula "=PMT(interest rate/12, tenure in months, loan amount)".
3. Replace "interest rate" with your loan's annual interest rate.
4. Divide the annual interest rate by 12 to get the monthly rate.
5. Replace "tenure in months" with the loan tenure in months.
6. Multiply the loan tenure by 12 to convert it into months.
7. Replace "loan amount" with the total loan amount.
8. Press Enter, and Excel will calculate the monthly EMI.
9. Review the result to plan your finances accurately for your home loan.

The EMI amount is usually fixed for the entire loan tenure if you opt for a fixed interest rate. However, if you have a floating interest rate, your EMI may change based on market fluctuations. Additionally, factors like prepayments or a loan restructuring can also impact your EMI. You can use a home loan EMI calculator to estimate different scenarios and plan your finances accordingly.

Home loan EMIs offer tax benefits under the Income Tax Act. The principal repayment qualifies for a deduction of up to ₹1.5 lakh per year under Section 80C, while the interest paid is eligible for a deduction of up to ₹2 lakh under Section 24(b). If you have taken a home loan for an under-construction property, the interest paid during the construction period can be claimed in five equal installments after possession.

Yes, you can request a change in your home loan EMI date, subject to the lender’s policies. To modify the EMI date, you need to contact your lender and submit a formal request. Some lenders may charge a nominal fee for this service. It’s advisable to check with your bank or financial institution regarding their specific process, as changes in EMI dates could impact your repayment schedule and cash flow planning.

Part or subsequent disbursement occurs when a home loan is disbursed in multiple installments instead of a lump sum. This is common for under-construction properties, where the lender releases funds as per the project’s progress. Borrowers are charged interest only on the disbursed amount until the full loan is sanctioned. This approach ensures funds are utilized efficiently and helps in managing the repayment burden effectively.

Pre-EMI interest is the interest paid on the disbursed loan amount before the full loan is sanctioned. It applies primarily to under-construction properties, where lenders release funds in phases. During this period, you only pay interest, and the actual EMI payments begin after full disbursement. This helps reduce the financial burden in the early stages but may increase the total interest paid over the loan tenure.

A home loan amortization schedule is a detailed table illustrating the repayment process of a home loan over time. It outlines each periodic payment, breaking down the principal amount, interest component, and remaining balance. The schedule spans the entire loan tenure, showcasing how each payment contributes towards reducing the outstanding loan balance. It aids borrowers in understanding their repayment journey, including the gradual decrease in interest payments and the gradual increase in principal repayments as the loan progresses.