Home Loan EMI Formula
Home loan EMIs are calculated using the standard amortisation formula: EMI = P × R × (1+R)^N / ((1+R)^N − 1). Because home loans have long tenures (20–30 years), a seemingly small change in the interest rate translates into lakhs of rupees over the life of the loan. Use this calculator to compare lenders side by side.
Tax Benefits on Home Loans
Under the old regime, you can claim up to ₹2 lakh per year on home loan interest under section 24(b) and ₹1.5 lakh on principal under section 80C. First-time buyers may get an additional ₹50,000 under 80EE/80EEA subject to conditions.
Prepayment Strategy
Making even one extra EMI per year during the first decade can save 3–5 years and lakhs of rupees in interest. Prepay as much as possible in the early years when the interest portion of each EMI is highest.
Frequently Asked Questions
What is the maximum home loan tenure?
Most banks cap home loan tenure at 30 years, subject to the borrower being within retirement age at maturity.
Can I switch banks for a lower rate?
Yes, balance transfer is allowed without prepayment penalty on floating-rate home loans.