EMI Calculator –
Calculate Loan Monthly Installment

EMI = P × r × (1+r)^n / [(1+r)^n – 1] where P = loan amount, r = monthly rate (annual ÷ 12 ÷ 100), n = months. For ₹10L at 8.5% for 20 years: monthly rate = 8.5÷12÷100 = 0.00708. n = 240. EMI = ₹8,678. Total interest = EMI×240 – 10L = ₹10.8L. This is the same formula used by all Indian banks.

Shorter tenure: higher EMI, less total interest, faster debt-free. Longer tenure: lower EMI, more total interest, cash flow friendly. Rule of thumb: choose the shortest tenure where EMI ≤ 30-35% of monthly take-home salary. If you have surplus income, make prepayments rather than choosing a longer tenure to reduce total interest.

When you prepay a lump sum, it directly reduces the outstanding principal. Your bank will offer two options: (1) Reduce EMI — keep same tenure, lower monthly payment, or (2) Reduce tenure — keep same EMI, loan closes earlier. Option 2 (reducing tenure) saves significantly more total interest. Most financial advisors recommend reducing tenure.

Home loan rates in India (2024): SBI at 8.4–9.15%, HDFC at 8.7–9.95%, Kotak at 8.7–9.6%, ICICI at 8.75–9.85%. Rates vary by credit score, loan amount, and property type. Borrowers with CIBIL score above 750 get the lowest rates. Rate difference of 0.5% on ₹50L loan over 20 years = ₹3.8L total savings.

Compare after-tax loan rate vs expected SIP returns. Home loan at 8.5% (with tax benefit u/s 24B, effective rate ~6-6.5% for 30% taxpayers) vs SIP at 12%+ → invest in SIP. Personal loan at 14%+ → prepay aggressively (guaranteed 14% return by paying off debt). Car loan at 9% → borderline, depends on your risk appetite.

Generally required: PAN card, Aadhaar, last 3 months salary slips, Form 16, 6 months bank statements, IT returns (2-3 years), property documents. Processing time: 7-15 days at most banks. You can apply online at SBI YONO, HDFC, or aggregators like BankBazaar and PaisaBazaar for rate comparison.