EMI Calculator
Planning to apply for a loan but unclear about the EMI involved? Find out your EMI now.
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How is EMI calculated
Equated Monthly Installment – or EMI for short – is the amount payable every month to the home loan lender (bank or any other financial institution) until the loan amount is fully paid off.
EMI is essentially the sum of principal amount and interest divided by the loan tenure (repayment time period in months).
EMI has two components: Principal Component and Interest Component. The Principal Component goes towards repaying your outstanding principal amount till it is fully repaid. The interest component is based on the loan outstanding at any point in time and keeps on reducing until the end of the loan tenure.
Picking the right lender
If you pick a home loan with a higher interest rate, you end up paying a higher EMI, and take longer to repay your loan.
So it’s very important to choose wisely and plug any unnecessary outflow of money. Picking the right lender gives you the immediate benefit of a lower EMI and helps you save lakhs of rupees in the long run.