Instantly compute your Equated Monthly Instalment for home, car, personal, or education loans. View amortization schedule and plan your finances better.
EMI is calculated using the standard reducing balance formula:
EMI = P × r × (1 + r)n / ((1 + r)n − 1)
For example, a ₹50,00,000 home loan at 8.5% p.a. for 20 years results in a monthly EMI of approximately ₹43,391. The total interest paid over 20 years would be about ₹54,13,800.
| Loan Type | Interest Rate Range | Typical Tenure | Max Amount |
|---|---|---|---|
| Home Loan | 8.25% – 9.50% | 15 – 30 years | Up to ₹10 Cr |
| Car Loan | 8.50% – 12.00% | 1 – 7 years | Up to ₹1 Cr |
| Personal Loan | 10.50% – 18.00% | 1 – 5 years | Up to ₹40 Lakh |
| Education Loan | 8.00% – 12.50% | 5 – 15 years | Up to ₹1 Cr |
*Rates are indicative and vary by bank, credit score, and loan amount. Always verify current rates with your lender.
EMI (Equated Monthly Instalment) is a fixed monthly payment made to a lender to repay a loan. It is calculated using the formula: EMI = P × r × (1+r)n / ((1+r)n − 1), where P is the principal amount, r is the monthly interest rate, and n is the number of monthly instalments. Each EMI consists of both principal repayment and interest payment components.
Yes, most banks allow prepayment of loans. For floating rate home loans, banks cannot charge prepayment penalties as per RBI guidelines. Prepayment reduces the outstanding principal, which in turn reduces either your EMI amount or your loan tenure. Even small prepayments can save you significant interest over the life of the loan.
Fixed interest rates remain constant throughout the loan tenure, giving you predictable EMIs. Floating rates change based on the repo rate and market conditions, meaning your EMI can increase or decrease over time. Floating rates are generally 1–2% lower initially but carry the risk of future increases. Most home loans in India are now on floating rates linked to external benchmarks like the RBI repo rate.
A longer loan tenure reduces your monthly EMI but increases the total interest paid over the loan period. A shorter tenure means higher EMIs but significantly lower total interest cost. For example, a ₹50 lakh home loan at 8.5% for 20 years costs about ₹22 lakh more in total interest than the same loan for 10 years. Choose a tenure that balances affordability with total cost.
An amortization schedule is a detailed table showing each EMI payment broken down into principal and interest components. In the early years of a loan, a larger portion of the EMI goes toward paying interest. As time progresses, the principal component increases while the interest component decreases. This schedule helps you understand exactly how your loan is being repaid month by month.
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