Home Loan EMI Calculator India 2025
Calculate your monthly EMI, pre-EMI interest for under-construction properties, moratorium period impact, total interest, and payment schedule.
What is Pre-EMI Period?
For under-construction properties, you don't pay full EMI during construction. Only interest accumulates and is added to your loan amount. Full EMI starts after possession.
Monthly EMI
₹89.71 K
Loan Composition
0.58x
You'll pay 0.58 times the principal as interest
Payment Schedule
Showing 1 to 12 of 132 entries
Total Principal
₹75.00 L
Total Interest
₹43.41 L
Total Payable
₹1.18 Cr
Home Loan EMI Calculation Formulas
Understand the mathematical formulas used to calculate home loan EMI, interest, and principal components.
EMI Calculation Formula
Calculate the Equated Monthly Installment using the standard EMI formula.
EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]Example:
₹50,00,000 loan at 8.5% annual rate for 20 years
Variables:
Interest Component
Calculate the interest portion of each EMI payment.
Interest = Outstanding Principal × Monthly RateExample:
First EMI with ₹50,00,000 outstanding at 0.708% monthly rate
Variables:
Principal Component
Calculate the principal portion of each EMI payment.
Principal = EMI - InterestExample:
First EMI of ₹43,391 with ₹35,400 interest
Variables:
These formulas provide the mathematical foundation for the calculations. Actual results may vary based on rounding, compounding frequency, and specific lender policies.
Hidden Charges to Watch Out For in India
Be aware of these additional costs that banks may charge beyond your EMI
Processing & Administrative Fees
Ongoing & Hidden Charges
Insurance & Protection
💡 Pro Tip
Always ask for a detailed cost breakdown before signing. Many charges are negotiable, especially processing fees. Compare total costs across banks, not just interest rates.
Required Documents Checklist
Keep these documents ready to speed up your home loan application process.
Identity & Address Proof
Income Documents
Property Documents
Compare Home Loan Rates Across Banks
Compare home loan interest rates and find the best deals from top banks
Home Loan EMI FAQs
Everything you need to know about home loans, EMI calculation, moratorium period, and mortgage planning
What is a home loan and how does it work?
A home loan is a secured loan specifically for purchasing, constructing, or renovating residential property. The property itself serves as collateral for the loan.
Key Features: Secured loan, lower interest rates (8-12%), longer tenure (up to 30 years), tax benefits available, and the property serves as collateral.
What factors determine my home loan interest rate?
Several factors influence your home loan interest rate:
- Credit Score: Higher scores (750+) get better rates
- Loan-to-Value Ratio: Higher down payment = lower rate
- Income Stability: Regular income and employment history
- Property Type: Ready vs under-construction properties
- Loan Amount & Tenure: Larger amounts may have different rates
- Bank Relationship: Existing customers often get better rates
Pro Tip: Make a higher down payment (20-30%) to get better interest rates and reduce your EMI burden.
What are the tax benefits available on home loans?
Home loans offer significant tax benefits under the Income Tax Act:
Section 80C - Principal Repayment
Deduction up to ₹1.5 lakhs per year on principal repayment amount.
Section 24B - Interest Payment
Deduction up to ₹2 lakhs per year on interest payments for self-occupied property.
Additional Benefits: First-time homebuyers can claim additional ₹50,000 deduction under Section 80EE, and stamp duty registration can be claimed under Section 80C.
What documents are required for a home loan application?
Complete documentation is crucial for faster home loan approval:
Personal Documents:
- PAN Card and Aadhaar Card
- Passport size photographs
- Address proof (utility bills, etc.)
- Bank statements (6 months)
- Income proof (salary slips, ITR)
Property Documents:
- Sale agreement/allotment letter
- Approved building plan
- NOC from builder/society
- Property tax receipts
- Title deed and encumbrance certificate
What is the difference between fixed and floating interest rates?
| Aspect | Fixed Rate | Floating Rate |
|---|---|---|
| Interest Rate | Remains constant throughout | Changes with market conditions |
| EMI Amount | Fixed EMI every month | EMI may vary over time |
| Rate Level | Usually 1-2% higher initially | Lower initial rates |
| Prepayment | Higher prepayment charges | Lower/no prepayment charges |
Recommendation: Floating rates are generally preferred for long-term loans as they tend to be lower over the loan tenure and offer more flexibility.
What is a home loan moratorium period or pre-EMI period?
A home loan moratorium period (also called pre-EMI period) is the time during property construction when you pay only interest on the disbursed amount, not the full EMI. The interest accumulates and is added to your principal. Full EMI payments start after possession, making this especially useful for under-construction properties where the loan is disbursed in stages.
How does pre-EMI interest work during construction?
During the construction phase, banks disburse the loan in stages based on construction progress. You pay only simple interest on the disbursed amount each month (pre-EMI). This interest is added to your loan principal. Once construction completes and you take possession, regular EMI payments begin on the total loan amount including the accumulated interest.
Should I opt for a moratorium period for an under-construction property?
Moratorium periods are helpful when you are paying rent and servicing the loan simultaneously. Paying only interest (pre-EMI) for 1-5 years eases cash flow during construction. However, since interest keeps adding to your loan, opt for moratorium only if necessary and plan to switch to full EMI as soon as possible.
How much does the moratorium period increase my total home loan cost?
The moratorium period increases your total cost because interest keeps compounding. For example, on a ₹75 lakh loan at 9% with a 2-year moratorium, about ₹13.5 lakhs of interest gets added to the principal. Use the calculator's pre-EMI period feature to estimate the exact impact for your loan amount, interest rate, and construction timeline.
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