Are you planning to get a home loan but unsure about the exact EMI you’ll need to pay? The Piramal Finance home loan EMI calculator can help determine the monthly payment amount. It lets you make informed decisions when buying your dream home and manage your monthly budget better.
With Piramal Finance, you can enjoy home loans with low interest rates and a flexible repayment period. Our Home Loan Interest Rate calculator also helps you calculate the total interest on your loan.
EMI Calculation
What is Home Loan EMI?
EMI refers to Equated Monthly Instalment and is the amount that you need to pay your lender every month. You can calculate home loan EMI by adding the interest on the outstanding balance of your housing loan. If you want to reduce the EMI, choose a longer repayment schedule. The maximum time you can take to repay a home loan from Piramal Finance is 30 years.
How to calculate home loan EMI?
The formula for EMI calculation is as follows:
- P x R x (1+R)^N / [(1+R)^N-1]
Here,
P = Principal loan amount or the amount you borrowed (Principal Component)
R = Monthly interest rate charged by your lender (Interest Component)
N = Loan duration in months (Tenure Component)
The rate of interest on your housing loan is calculated on a per-month basis. Therefore,
R = Annual rate of interest/ 12/ 100
Suppose the annual rate of interest is 11%. Then, R = 11/ 12/ 100 = 0.009
Example
For instance, you are planning to apply for a 50-lakh home loan EMI at an interest rate of 11% per annum. Consider the tenure of your loan as 240 months (20 years). In that case, you will calculate the EMI amount using this formula:
- EMI = ₹ 50,00,000 * 0.009 * (1 + 0.009) 240 / [(1 + 0.009) 240 - 1) = ₹ 51,609
Similarly, you can calculate home loan EMI for different principal and tenures.
EMI Calculation
-
Row 1
- Principal Amount
- Tenure
- Rate of Interest
- EMI
-
Row 2
- ₹ 10 lakhs
- 10 years
- 11%*
- ₹ 13,775
-
Row 3
- ₹ 25 lakhs
- 10 years
- 11%*
- ₹ 34,438
-
Row 3
- ₹ 50 lakhs
- 20 years
- 11%*
- ₹ 51,609
-
Row 4
- ₹ 50 lakhs
- 25 years
- 11%*
- ₹ 49,006
-
Row 5
- ₹ 75 lakhs
- 25 years
- 11%*
- ₹ 73,508
Calculating the home loan EMI manually can be extremely tedious. Moreover, you are likely to make mistakes while calculating it manually. That's why the Piramal Finance home loan calculator will calculate the accurate home loan EMI.
How to Use Piramal Finance's Home Loan EMI Calculator?
Using the Piramal Finance Home Loan EMI Calculator is quick and simple. Follow these steps to determine your monthly EMI:
- Enter the Loan Amount: Specify the amount you wish to borrow.
- Select the Loan Tenure: Choose the repayment period, which can range up to 30 years.
- Set the Interest Rate: Enter the applicable interest rate, starting from 9.50% p.a.
- View Your EMI Calculation: Instantly see your monthly EMI, total interest payable, and total repayment amount.
- Modify Inputs for Comparison: Adjust the loan amount, tenure, or interest rate to compare different scenarios and choose the most suitable loan plan.
Home Loan Eligibility Criteria
To qualify for a home loan with Piramal Finance, applicants need to meet specific criteria to ensure their ability to repay the loan. Below is a summary of the eligibility requirements:
-
Row 1
- Criteria
- Salaried Individuals
- Self-Employed Individuals
-
Row 2
- Age Limit
- Minimum: 21 years; Maximum: 70 years
- Minimum: 23 years; Maximum: 70 years
-
Row 3
- Credit Score
- A good credit score of 700 or above
- A good credit score of 700 or above
-
Row 3
- Work Experience
- At least 2 years in current employment
- Minimum of 3 years in the same business
-
Row 4
- Income
- Minimum monthly salary of ₹12,000
- Minimum monthly salary of ₹12,000
-
Row 5
- Nationality
- Must be a resident of India
- Must be a resident of India
-
Row 6
- Loan Tenure
- Up to 30 years
- Up to 30 years
-
Row 7
- Loan Amount
- Ranges from ₹5,00,000 to ₹2,00,00,000
- Ranges from ₹5,00,000 to ₹2,00,00,000
You can use our simple home loan eligibility calculator to easily know if you are eligible to apply for home loan EMI.
What are the benefits of Calculating Home Loan EMIs?
The EMI calculation helps you figure out if you can afford to buy your dream home. It ensures that you know how much of your monthly earnings will go towards housing loans. Here's how EMI calculation assists in the planning process:
Budgeting
EMI calculation allows you to determine the amount you will need to pay each month towards your home loan. This helps you create a budget for your monthly expenses. It allows you to easily handle your loan repayment and other financial obligations.
Loan Amount
Calculate home loan EMI to find out the highest loan you can afford, considering your income and financial stability. This stops you from borrowing too much and struggling to pay it back, lowering the chance of missing payments.
Interest Assessment
EMI calculation helps you understand the impact of interest on your home loan. It shows how much of each payment goes to the loan amount and how much goes to the interest. Over the years, a larger portion of the EMI goes towards principal repayment, reducing the outstanding loan balance and the overall interest paid..
Loan Tenure
EMI calculation allows you to experiment with different loan tenures. Longer tenures result in lower monthly payments and higher overall interest paid. On the other hand, shorter tenures lead to higher monthly payments, but less overall interest paid. This calculation helps you strike a balance between a manageable monthly payment and minimizing the interest paid.
Prepayment Planning
If you plan to make prepayments towards your home loan in the future, home loan EMI calculations can help you understand how these prepayments will affect the loan's tenure and interest payments. You can even choose to keep your EMI constant and reduce the loan tenure by making additional payments.
Long-Term Financial Planning
Understanding your EMI commitments over the loan tenure helps you incorporate these payments into your long-term financial planning. This is especially important when considering other financial goals like retirement planning, investments, and education expenses.
What are the benefits of Home Loan?
At Piramal Finance, we understand that buying a home is a significant milestone in your life. That's why we're committed to providing you with a home loan that meets your needs and helps you achieve your dreams. Here are some of the key benefits of choosing our home loans:
- Flexible Loan Amounts Whether you're purchasing your first home or upgrading, our home loans cater to various needs, with no upper limit on the loan amount based on your eligibility.
- Long Tenure Options Enjoy extended loan tenures of up to 30 years, allowing you to spread your repayments over a comfortable period and reduce your EMI burden.
- Tax Benefits Take advantage of tax deductions under Section 80C and Section 24 of the Income Tax Act. You can claim up to INR 1.5 lakhs on the principal repayment and additional deductions on interest paid, making your investment even more rewarding.
- Quick and Hassle-Free Processing Our streamlined application process ensures that you receive prompt approvals, so you can focus on moving into your new home sooner.
- Flexibility of Repayment Many options are available when creating a home loan plan that suits your needs. Out home loan plans are designed to be flexible when it comes to tenure, prepayment, and foreclosure terms.
- Minimum Documentation To make the home loan application process easier for you, we require minimal documentation.
Impact of changes in Interest Rate
Even a small change in interest rates can significantly impact your monthly EMI and total repayment amount. On February 7, 2025, the Reserve Bank of India (RBI) reduced the repo rate by 25 basis points to 6.25%. This marks the first rate cut in nearly five years and aims to stimulate the slowing economy amid easing inflation.
Let’s take that into account and see how the changes could impact.
Comparing Different Interest Rate Scenarios for a ₹50 Lakh Loan (20-Year Tenure)
-
Row 1
- Scenario
- Interest Rate
- Monthly EMI
- Total Interest Paid
- Total Payment (Principal + Interest)
-
Row 2
- RBI Rate Cut (Lower Interest Rate)
- 10.75%
- ₹ 50,491
- ₹ 71.17 Lakhs
- ₹ 1.21 Crore
-
Row 3
- Standard Market Rate
- 11.00%
- ₹ 51,609
- ₹ 74.86 Lakhs
- ₹ 1.24 Crore
-
Row 3
- 1% Rate Hike Impact
- 12.00%
- ₹ 55,144
- ₹ 84.34 Lakhs
- ₹ 1.34 Crore
Key Takeaways
Lower Rates = More Savings:
With the RBI rate cut around 0.25%, your monthly EMI decreases by ₹1,118, saving you ₹3.69 Lakhs in total interest over 20 years.
Higher Rates = More Burden:
A 1% increase from 11% to 12% raises EMI by ₹3,535 per month and adds ₹9.48 Lakhs extra in total interest over the loan tenure.
Expert Tip: If affordability allows, opting for a shorter tenure can help you save lakhs on interest.
- Lock in lower interest rates while they last.
- Improve your credit score (750+) to get better loan offers.
- Use part-prepayments to reduce overall interest payments.
Impact of Different Tenures & Interest Rates on Home Loan
Case Study: 10-Year vs. 20-Year vs. 30-Year Home Loan Tenure
Choosing the right home loan tenure impacts your EMI and total interest paid. Here’s a comparative breakdown for a ₹50 Lakh loan at 9.50% interest:
-
Row 1
- Details
- 10-Year Tenure
- 20-Year Tenure
- 30-Year Tenure
-
Row 2
- Monthly EMI
- ₹ 64,556
- ₹ 46,607
- ₹ 42,137
-
Row 3
- Total Interest Paid
- ₹ 27.4 Lakhs
- ₹ 61.8 Lakhs
- ₹ 1.01 Crore
-
Row 3
- Total Payment (Principal + Interest)
- ₹ 77.4 Lakhs
- ₹ 1.11 Crore
- ₹ 1.51 Crore
Key Takeaways
- 10-Year Loan: Higher EMI, but lowest interest cost.
- 20-Year Loan: Balanced EMI with moderate interest burden.
- 30-Year Loan: Lowest EMI, but total interest is nearly 3.7X that of a 10-year loan!
Expert Tip: If affordability allows, opting for a shorter tenure can help you save lakhs on interest.
Tips to Get the Best Home Loan EMI
By: Financial Experts at Piramal Finance
- Opt for a shorter tenure whenever possible: It helps reduce total interest outgo.
- Make part-prepayments: It reduces the outstanding principal and cuts down overall interest liability.
- Compare interest rates before finalizing: Even a 0.5% lower rate can lead to significant savings over the loan tenure.
- Maintain a good credit score: A score above 750 can help secure loans at the lowest interest rates.
- Use the Piramal Finance EMI Calculator: It helps you compare scenarios and make an informed decision.
What is a Home Loan amortization schedule?
A home loan amortization schedule is a detailed table showing each monthly payment over the life of your loan. It breaks down how much of each payment goes towards the principal and how much goes towards interest. This helps you understand your repayment progress and plan your finances effectively. With this clarity, you can stay on track and manage your home loan with confidence!
Get Home Loan for Different Budgets
Know your monthly EMI for various home loan amounts.
Frequently asked questions
Paying a home loan EMI provides significant tax benefits under various sections of the Income Tax Act, 1961. Here's a breakdown:
Section 80C: Tax Deduction on Principal Repayment
- Maximum Deduction: Up to ₹1,50,000
- Eligibility: The deduction is applicable for the repayment of the principal portion of the EMI.
- Conditions: The property should not be sold within 5 years of possession.
Section 24B: Tax Deduction on Interest Paid
- Maximum Deduction: Up to ₹2,00,000
- Eligibility: The deduction applies to the interest component of the EMI.
- Conditions: The house must be self-occupied, and construction should be completed within 5 years of taking the loan. For let-out properties, there is no upper limit on interest deduction.
Section 26 Read with Section 24: Tax Benefits for Joint Owners
- Maximum Deduction: Up to ₹2,00,000 per co-owner (for interest)
- Eligibility: Both co-borrowers must be co-owners of the property to claim this benefit.
- Conditions: Each co-owner can claim their share of principal and interest deduction proportionate to their ownership.
Similar Calculators
Recommended Articles
To know more about loans, processes and much more
- Making your financial dreams come true can sometimes require a helping hand. Be it to...
- 12 Nov 2021
- 5 min read
- When it comes to loans, collateral is the most daunting term for people. The question...
- 24 Nov 2021
- 5 min read
- Working Capital is an indicator of the financial condition of an organization or a...
- 26 Nov 2021
- 5 min read
- Working Capital is an indicator of the financial condition of an organization or a...
- 26 Nov 2021
- 5 min read
- Whether you’re applying for a credit card or a loan, your CIBIL score becomes a...
- 11 Jan 2022
- 5 min read