Frequently Asked Questions

Everything you need to know about home loan EMI in India
The EMI formula is: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the loan tenure in months. For example, a ₹50 lakh loan at 8.5% for 20 years gives an EMI of approximately ₹43,391 per month.
For a ₹50 lakh home loan at 8.5% for 20 years, the EMI is approximately ₹43,391/month. At 8.75% for 20 years, it becomes approximately ₹44,188. Use our calculator on the home page to get the exact EMI for your loan amount, rate and tenure.
Reducing tenure saves more total interest because you exit the loan faster. Reducing EMI improves your monthly cash flow. If you can afford the current EMI, reducing tenure is mathematically better. Our calculator lets you simulate both scenarios under the Prepayments section.
For floating rate home loans, when RBI increases the repo rate, banks typically increase your home loan interest rate too, which either increases your EMI or extends your tenure. Our Interest Rate Changes feature in Advanced Options lets you simulate exactly how any rate change affects your loan.
Most Indian banks offer home loan tenures up to 30 years (360 months). SBI, HDFC, ICICI, Kotak and other major banks typically allow tenures up to 30 years, subject to the borrower's age at loan maturity not exceeding 70–75 years.
Banks typically allow EMI to be 40–50% of your net monthly income. On a ₹50,000 salary, your maximum EMI would be ₹20,000–25,000. At 8.5% for 20 years, this translates to an eligible loan amount of approximately ₹20–24 lakh. However, the exact amount depends on your credit score, existing liabilities and the lender.
Yes, any prepayment made reduces your outstanding principal and therefore the interest calculated on it. Prepayments made early in the loan tenure have the highest impact because compound interest works against you the most in the early years. Even small regular prepayments can save significant interest over a 20–30 year loan.
An amortisation schedule is a complete table of the periodic loan payments showing each month's principal component, interest component, and outstanding balance. It helps you see exactly how much of each EMI goes toward reducing your loan vs. paying interest. Our calculator generates a full, day-accurate amortisation schedule that you can also export to PDF.
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