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🧮 Calculate EMI Instantly
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Open EMI Calculator →What is EMI?
EMI stands for Equated Monthly Installment — the fixed amount you pay to a bank every month to repay a loan. Each EMI has two components: principal repayment and interest. In the early months, most of the EMI goes toward interest; as the loan matures, more goes toward principal.
💡 Example: Rs.30 lakh home loan at 8.5% for 20 years → EMI = Rs.26,035/month. Total repayment = Rs.62.5 lakh (interest = Rs.32.5 lakh!)
EMI Formula (Reducing Balance)
P = Principal loan amount
r = Monthly interest rate = Annual rate ÷ 12 ÷ 100
n = Loan tenure in months
Step-by-Step Calculation
Let us calculate EMI for a Rs.50 lakh home loan at 8.75% for 20 years:
- P = Rs.50,00,000
- r = 8.75 ÷ 12 ÷ 100 = 0.007292
- n = 20 × 12 = 240 months
- EMI = 50,00,000 × 0.007292 × (1.007292)^240 ÷ [(1.007292)^240 − 1]
- EMI = Rs. 43,913
Home Loan EMI Rates — March 2026
| Bank | Rate Range | EMI on Rs.30L/20yr |
|---|---|---|
| SBI | 8.50–9.15% | Rs.26,035 |
| HDFC Bank | 8.70–9.40% | Rs.26,385 |
| ICICI Bank | 8.75–9.85% | Rs.26,474 |
| Axis Bank | 8.75–13.30% | Rs.26,474 |
| Kotak Mahindra | 8.75–9.60% | Rs.26,474 |
5 Ways to Reduce EMI
- Larger down payment — Reduces principal directly.
- Longer tenure — 25 yrs vs 20 yrs can reduce EMI by 12-15% (though total interest increases).
- Improve CIBIL score — 750+ score gets you 0.25-0.50% lower rate.
- Balance transfer — Refinance if current rate is 0.5% above market.
- Part-prepayment — Even Rs.50,000 once a year cuts tenure by 2-3 years.
📌 Tax tip: Home loan principal is deductible under 80C (up to Rs.1.5L). Interest under 24b (up to Rs.2L for self-occupied). Under new regime from FY2026-27, 80C is not available — stick with old regime if EMI tax savings matter.
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