Home Loan EMI Calculator – Plan Your Dream Home
Buying a home is likely the biggest financial decision of your life. It's not just about finding the right property; it's about finding the right loan that fits your budget. A home loan is a long-term commitment, often lasting 15 to 30 years.
Our Home Loan EMI Calculator helps you navigate this journey with confidence. By simulating different loan amounts, interest rates, and tenures, you can find the perfect EMI that allows you to enjoy your new home without financial stress.
Smart Tips for Home Loan Borrowers
Optimize your home loan to save lakhs in interest over the long run.
Increase Down Payment
The more you pay upfront, the less you borrow. Even a small increase in your down payment can significantly reduce your EMI burden and total interest cost.
Prepay Regularly
Use your annual bonus or any surplus funds to make part-payments. Prepaying even one extra EMI a year can shave years off your loan tenure.
Check Your Credit Score
A credit score of 750+ gives you bargaining power. You can negotiate for a lower interest rate, which translates to massive savings over 20 years.
Opt for RLLR
Choose a Repo Linked Loan Rate (RLLR) over a standard floating rate. It ensures that when the RBI cuts rates, your home loan interest rate drops quickly too.
Frequently Asked Questions (FAQs)
How much home loan can I get?
Banks generally lend up to 60 times your monthly net income. They also ensure that your total EMIs (including the new home loan) do not exceed 40-50% of your take-home salary.
What are the tax benefits on a home loan?
You can claim a deduction of up to ₹1.5 Lakhs under Section 80C for principal repayment and up to ₹2 Lakhs under Section 24(b) for interest payment in a financial year.
Should I choose a fixed or floating interest rate?
For long-term loans like home loans, a floating rate is almost always better. Fixed rates are usually 1-2% higher than floating rates and come with prepayment penalties, whereas floating rate loans have zero prepayment charges.
What is a Joint Home Loan?
You can take a loan jointly with your spouse or parent. This increases your loan eligibility (as both incomes are considered) and allows both applicants to claim tax deductions separately, doubling the tax benefits.
What is the Loan-to-Value (LTV) ratio?
LTV is the percentage of the property value that the bank will finance. RBI guidelines cap LTV at 90% for loans up to ₹30 Lakhs, 80% for loans between ₹30-75 Lakhs, and 75% for loans above ₹75 Lakhs. The rest must be arranged by you as a down payment.