The home loan EMI calculator instantly calculates your monthly instalment based on the loan amount, interest rate, and duration. The home loan EMI calculator also provides total interest payable, total principle payable for better understanding and planning of your home loan repayment, considering your financial capacity, helping you allocate your funds wisely when you decide on buying your dream home.
Monthly EMI: Rs. 1,000,00
A Home Loan EMI (Equated Monthly Instalment), commonly known as EMI, is the fixed monthly instalment paid by the borrower to the lender towards their home loan. It comprises both principal repayment and interest payment, with the total amount remaining constant throughout the loan tenure. EMI payments are typically made on a monthly basis until the entire loan amount, along with interest, is fully repaid.
A housing loan EMI calculator computes the EMI you will be paying as repayment for the home loan. It uses three variables to calculate the EMI –
Having an estimate of the EMI towards your home loan can pave a way for you to plan your home buying journey and also helps you to choose a home loan that provides you the perfect balance of loan amount, rate of interest and tenure.
A Home Loan Calculator not only helps in ascertaining the EMI of your loan but also gives clarity in the following aspects:
1Financial planning- The EMI calculator gives you an estimate of the total amount that you have to pay to settle the loan. This provides you clarity in planning your budget for buying your home as well as other areas of your life.
2Ease of calculation- Calculating the EMI for your home loan can be a taxing process. With the digital EMI calculator, you enjoy the benefit to get instant results for the complex calculations without an error.
3No personal information required- To use the EMI Home Loan calculator, you do not have to add any personal details which makes it much safer to use. All you need to do is fill in the principal amount, the interest rate and the loan tenure and an estimate of your monthly instalment would be ready.
4Convenient to use- You don’t need to visit an insurance branch or speak to an agent to know the EMI of your loan. Within a few clicks, you get an error-free results as per your inputs. This makes it a simple and quick tool which can be used anywhere.
To know the estimated EMI of your loan with the help of a housing loan EMI calculator, you need to enter three vital variables:
1The Principal amount- The principal loan amount refers to the actual cost borrowed by you and lent by the bank or the NBFC. In general, this amount is between 80% to 90% of the total cost of your home. The principal amount has a direct link with the EMI. So, the higher the principal amount entered in the housing loan EMI calculator, the higher will be the estimated EMI.
2The rate of interest- It is the percentage of the amount that you would have to pay on top of the loan amount. The rate of interest differs from bank to bank and this interest is charged on simple and compound basis. On the calculator, the interest rate can be lowered up to a certain extent only indicating the lowest rate offered by the lender. However, the final rate of interest prescribed to you will depend on several factors.
3The loan tenure- The loan tenure refers to the duration within which you plan to repay the loan. If you opt for a longer loan duration, you will incur lower EMIs as the repayment is being extended over longer periods of time which would also mean that you have to pay interest for a longer period too.
Manual -
Home Loan EMI Calculator -
If any EMI payment default occurs due to any reason, you might face certain penalties.
The term "home insurance plan calculator" is often encountered, but it differs significantly from a "home loan EMI calculator." Here's how
1Home Insurance Calculator - A home insurance calculator estimates the premium amount for a home insurance policy, providing protection for your home structure and its contents against natural and man-made adversities.
2Home Loan EMI Calculator - While a Home Loan EMI calculator requires only the principal amount, rate of interest, and loan tenure, the Home Insurance Plan calculator necessitates additional details such as:
Type of home insurance plan
Preferred Sum Insured
Choice of Add-ons for enhanced protection
These factors collectively determine the premium payable for the selected home insurance plan.
When utilizing a home loan EMI calculator, you may encounter the term "home loan amortization schedule." Essentially, an amortization schedule is a table that delineates the loan repayment into equal monthly instalments. Typically, it includes the following:
The remaining balance before each EMI payment
The EMI amount payable
The portion of the EMI allocated to repaying the principal amount
The portion of the EMI allocated to the overall interest amount
The remaining loan balance after each EMI payment
Buying a house of your own is what many of aspire for. It is an investment that involves years of hard-work, time, savings and hence the decision to finance your home and protect it against any unforeseen threats becomes our priority. Although home loan insurance and home insurance are two very different terms, yet many get confused between the two. Let us have a look on how both these terms differ:
| Parameters | Home Loan Insurance | Home Insurance |
|---|---|---|
| Meaning | This type of insurance covers your home loan’s liability and prevents you from losing possession of your house in case EMI payment default occurs due to an unforeseen event. | Home insurance provides coverage for your home and its contents against any damage or accidents, minimizing your financial risk. |
| Accessibility | You can avail a home loan insurance only if home insurance is there. | Whether you have a home loan insurance or not, you can still purchase a home insurance plan. |
| Premium | The premium on home loan insurance are on the higher side | Home insurance premium is lower as compared to home loan insurance |
| Down Payment | The down payment of your home reduces with home loan insurance | Home insurance has no effect on the down payment. |
Many people consider home loan insurance as part of a home insurance plan. However, these insurance plans are entirely separate.
A home insurance plan shields your home and other valuable contents from both natural and man-made calamities, reducing your financial liability in the event of any damage or loss to the property. Additional coverage options, known as Add-ons, are available to enhance your home’s protection.
On the other hand, a home loan insurance plan covers housing loan liabilities in the face of adversity, helping you secure ownership of your home in case of default in monthly instalment (EMI) payments. This plan safeguards the interests of both the borrower and the lender if the borrower is unable to repay the loan amount.
Yes, a home insurance plan is still necessary even after your loan is paid off. While the primary purpose of home insurance is often to protect the property against damage or loss during the loan tenure, it continues to provide valuable coverage beyond that period.
Home insurance safeguards your property and belongings from various risks, including natural disasters, theft, fire, and liability claims. Additionally, it offers financial protection by covering repair or replacement costs in case of unexpected events. Therefore, maintaining home insurance coverage ensures continued peace of mind and security for your home and assets.
Let’s have a look at the benefits of having IFFCO-Tokio Home Insurance plan:
Our plan offers all-around coverage for your home structure from both natural and man-made calamities with a range of Add-ons to enhance the safety of your home.
With low-cost premium, securing your home has become easy.
IFFCO Tokio’s Home Insurance Plan gives a comprehensive protection to the home owners as well as to individuals living in a rented place.
You can choose to cover your valuable possessions like paintings, artefacts, jewellery with our home insurance plan and minimize your financial risk.
You can access your policy immediately once your payment is processed.
1How can one reduce the overall EMI amount?
Ans. While you can adjust the variable on the home loan EMI calculator page to reduce the estimated EMI, reducing the bank EMI would require another set of steps and methods.
2What is meant by a home loan amortization schedule?
Ans. You may have come across the term ‘home loan amortization schedule’ often when using a home loan EMI calculator. The amortization schedule essentially is a table explaining the break-up of your repayment through EMIs. Generally speaking, it would include the following:
3What kind of collateral does a home loan require?
Ans. In many cases, the collateral for the home loan is the home itself. However, in certain cases, the lender might ask for other types of collateral. A talk with your agent might be the best way to ensure what it is you are signing up for. Do note that the rate of interest you are offered will also depend upon the collateral. However, this is not something that you need to consider or enter when estimating the EMI through the housing loan EMI calculator.
4What information does the housing loan EMI calculator require to compute the EMI?
Ans. To compute the EMI, the housing loan EMI calculator requires three variables: the home loan principal amount, the loan tenure, and the rate of interest. Once you enter the three variables, the home loan calculator provides quick results every time.
5Does one need to upload any documents to use the housing loan EMI calculator?
Ans. No, there is no need to upload any kind of documents to use the home loan EMI calculator. You only need to enter the three variables - the principal amount, the rate of interest, and the loan tenure.
6Is buying a home insurance plan necessary for a home loan application approval?
Ans. No, it is not required for you to purchase a home insurance plan when applying for a home loan. Though some lenders may necessitate it, there is no legal decree mandating it. However, buying a home insurance policy can be immensely beneficial to you in the long run.
No, it is not required for you to purchase a home insurance plan when applying for a home loan. Though some lenders may necessitate it, there is no legal decree mandating it. However, buying a home insurance policy can be immensely beneficial to you in the long run.
7I already have a home loan that has financed my purchase. Do I need to buy a home insurance policy as well?
Ans. Buying a house is a great investment. You will be paying your home loan EMIs for a long period of time. Now, if something unfortunate were to happen to your house, the money that you have spent on the house would be wasted. You would also have to shelve out more money to get the damages to your house repaired. To avoid this, you can buy a home insurance policy. It protects your house from multiple natural calamities and manmade disasters.
8Do EMIs paid towards home loan repayment offer any tax-saving benefits?
Ans. Yes, as per prevalent tax laws, a taxpayer can claim tax reliefs on the repayment of their home loans.
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