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PMI (%)
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Principal & Interest Expense:
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Insurance:
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PMI Expense:
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Home Loan Eligibility

Table Header	Table Header
Age	Minimum Age: 18 years and Maximum Age: 70 years
Resident Type	The applicant must be (any one): Resident Indian Non-Resident India (NRI) Person of Indian Origin (PIO)
Employment	The applicant can be (any one): Salaried Self-employed
Net Annual Income	At least Rs.5-6 lakh depending on the type of employment
Residence	The applicant must have (any one): A permanent residence A rented residence where he/she has resided for at least a year prior to applying for a loan
Credit score	A good credit score of at least 750 or more obtained from a recognised credit bureau

Home Loan Documents Required

Identity Proof (any one)	Residence Proof (any one)	Other Documents
Driving License	Copy of Electricity Bill/Water Bill/Telephone Bill	Employer Identity Card
PAN	Copy of valid Passport/Aadhar Card/Driving License	Duly filled loan application form affixed with 3 passport size photograph
Voter ID		Loan account statement for the previous 12 months if the applicant has any other ongoing loan from other banks/financial institutions
Valid Passport		Bank account statements for all the bank accounts owned by the applicant for the last six months

Income Proof Documents

For Self-employed Applicant/Co-applicant:

For Salaried Applicant/Co-applicant:

Income Tax Returns for the last 3 years

Salary Slips for the last three months

Certificate of Qualification (for Doctors/C.A. and other professionals)

Copy of Form 16 or Income Tax Returns for the last two years

Balance Sheet audited by a certified C.A and Profit and Loss account for the previous 3 years

Business License Details

Business address proof

TDS Certificate

Documents Required from all Non-Resident Indians (NRIs) Applicants

Identity Proof (any one)

Residence Proof (any one)

Personal Loan EMI

Let us assume that these are the details of your personal loan:

Loan amount	Loan tenure	Interest rate	Processing fee	Loan EMI
Rs.7 lakh	5 years	10.99%	2%	Rs.15,216

Latest Update

Moratorium of 3 months on term loans announced by the RBI

The Reserve Bank of India announced that banks and Non Banking Financial Companies (NBFCs) are allowed to offer customers a 3-month moratorium on all term loans, which includes any loan which has a fixed repayment tenure. A moratorium is a period of time in which the Equated Monthly Instalment (EMI) of the loan doesn’t have to be paid. It is also called an ‘EMI holiday’.This would be applicable for home loans, auto loans, education loans, personal loans, consumer durable loans, loan against property, etc. Regional banks, rural banks, cooperative banks, and housing finance companies are allowed to offer this to customers. This will not affect the borrower’s credit history nor the asset classification of the lender. It will also not change the existing terms and conditions of the loan.

The actual conditions of the moratorium will depend on the bank that implements it. Banks have to receive approval from the boards that govern them to implement the RBI policy. If it is implemented, it would mean that EMIs are deducted from the borrower’s bank account only when the moratorium period expires. The tenure of the loan may get extended by 3 months. Additional interest of 3 months on the current outstanding loan amount will have to be paid, however, it is for the lenders to decide if it has to be paid on one instalment or as additional EMIs.

The RBI offered this moratorium period as a means to tide over the impact of the Covid-10 pandemic on the economy and ease financial challenges for borrowers of term loans.

However, this does not apply to credit card payments.

Total amount payable

Total amount payable
Total interest due	Rs.2,12,972
Processing fee	Rs.14,000
Loan quantum	Rs.7,00,000
Total amount to be paid	Rs.9,26,972

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EMI breakup for a personal loan of Rs.7 lakh

Year	Principal (in Rs.)	Interest (in Rs.)	Total of Principal and Interest (in Rs.)	Outstanding Loan Balance (in Rs.)
2019	54,056	37,241	91,297	6,45,943
2020	1,17,401	65,193	1,82,594	5,28,541
2021	1,30,976	51,621	1,82,597	3,97,566
2022	1,46,116	36,476	1,82,592	2,51,450
2023	1,63,008	19,587	1,82,592	88,441
2024	88,440	2,857	91,297

We have assumed here that you will not be making any pre-payment. Click here to fully understand how a personal loan EMI calculator works.

Home Loan EMI Calculator

Let us assume that these are the details of your home loan:

Loan amount	Loan tenure	Interest rate	Processing fee	Loan EMI
Rs.7 lakh	5 years	10.99%	2%	Rs.15,216

Total amount payable
Total interest due	Rs.17,07,729
Processing fee	Rs.15,000
Loan quantum	Rs.30,00,000
Total amount to be paid	Rs.47,22,729

Year	Principal (in Rs.)	Interest (in Rs.)	Total of Principal and Interest (in Rs.)	Outstanding Loan Balance (in Rs.)
2019	90,966	1,44,420	2,35,386	29,09,033
2020	1,95,735	2,75,037	4,70,772	27,13,297
2021	2,15,697	2,55,077	4,70,774	24,97,601
2022	2,37,692	2,33,080	4,70,772	22,59,909
2023	2,61,932	2,08,840	4,70,772	19,97,977
2024	2,88,644	1,82,130	4,70,774	17,09,334
2025	3,18,078	1,52,695	4,70,773	13,91,257
2026	3,50,515	1,20,258	4,70,773	10,40,742
2027	3,86,258	84,514	4,70,772	6,54,483
2028	4,25,649	45,123	4,70,772	2,28,835
2029	2,28,835	6,552	2,35,387

Car Loan EMI

Loan amount	Loan tenure	Interest rate	Processing fee	Loan EMI
Rs.18 lakh	7 years	9.12%	2.5%	Rs.29,070

EMI breakup for a car loan of Rs.8 lakh
Total interest due	Rs.6,41,887
Processing fee	Rs.45,000
Loan quantum	Rs.18,00,000
Total amount to be paid	Rs.24,86,887

Year	Principal (in Rs.)	Interest (in Rs.)	Total of Principal and Interest (in Rs.)	Outstanding Loan Balance (in Rs.)
2019	94,113	80,307	1,74,420	17,05,887
2020	2,01,551	1,47,290	3,48,841	15,04,336
2021	2,20,719	1,28,121	3,48,840	12,83,616
2022	2,41,713	1,07,127	3,48,840	10,41,903
2023	2,64,703	84,138	3,48,841	7,77,201
2024	2,89,879	58,962	3,48,841	4,87,322
2025	3,17,447	31,395	3,48,842	1,69,873
2026	1,69,873	4,547	1,74,420

We have assumed here that you will not be making any pre-payment. Click here to fully understand how a car loan EMI calculator works.

How EMI Calculators Work?

To put it quite simply, an EMI calculator is a tool that will require you to enter the amount you want to borrow, the duration of the loan, the interest rates and the processing fee and it will do the rest. The basic formula that works behind an EMI calculator is:

E = P x r x (1+r)^n/((1+r)^n – 1)

Here:

E is the amount that you will have to pay every month; basically the EMI.
P is the amount that you want to borrow.
r is the rate of interest that is applicable but calculated on a monthly basis instead of the annual rate of interest. It is obtained by using the formula r = (annual interest/12) x 100.
n is the duration of the loan in terms of months. So if you select a term of 5 years, n will be 60.

This is the most basic formula that will be used by the calculator but there are some that may even include things like the processing fee for the loan, into the calculation of the monthly instalment. The processing fee will generally be a certain percentage of the amount being borrowed and can range from 1% to 3% but since it is decided by the bank it can be different for each bank.

Whether you obtain a secured loan (home loan or car loan) or an unsecured loan (personal loan), you have to repay the loan through Equated Monthly Installments (EMIs) over a specified period of time called the loan tenure. The cost of your loan is calculated in terms of monthly payments. Loan EMI calculation can help you find out the monthly cost of your loan. Accordingly, you can create a monthly budget to create a balance between your income and expense.

Here are some important reasons why it is advisable to calculate your loan EMI beforehand:

- Loan amount: It is good to borrow only as much as you can repay. Depending on the loan EMI calculation, you can choose an appropriate loan amount to meet your financial needs. Maintain a low debt-to-income ratio so as to avoid defaulting on your loan.
- Loan tenure: A short loan tenure means higher EMI payments and lower interest payment whereas a long loan tenure means lower EMI payments but higher interest payment. Calculate EMIs for different loan tenures using the online EMI calculator. Choose a suitable loan tenure so as to avoid a higher interest payment.
- Loan EMI: A borrower with a high debt-to-income ratio has higher chances of defaulting on the loan. If you default on a secured loan like a car loan, the bank will repossess your car and put it up for auction in order to compensate for the outstanding dues. Which is why, your loan EMI payments must not exceed more than 50% of your income.

Manual loan EMI calculation can be cumbersome and prone to human error. With the advent of technology, it has become easier to calculate loan EMI online with just a few clicks of your mouse. Use the free online EMI calculator available on a reliable third-party website or a bank website to get instant and accurate results. Online EMI calculators can be used to calculate the cost of any type of loan scheme that you choose.

How to Use an EMI Calculator?

To ensure your loan EMI payments are within your repayment capacity, you can either adjust the loan tenure or the loan amount, or both. You can’t adjust the loan interest rate and processing fee levied by a bank. However, you can compare various loan offers and choose one with a low interest rate and zero processing fee to lower the cost of your loan.

Components of an EMI Calculator

There are three parts to the information that an EMI calculator provides. The first is the EMI itself, the second a breakup of the payments due and the third the amortisation table.

The EMI

The EMI or the Equated Monthly Instalments are the amount that you can expect to pay if you go in for a loan. It includes payments of the principal and the interest that are applicable on the loan. It is the most important information that the calculator provides since the EMI is at the basis of the decision about the affordability of the loan.

The breakup

The breakup is a breakup of the entire amount that you will pay to the bank or the financial institution. It will tell you the amount that will be paid back as the principal and the amount that will be paid as the processing fee for the loan. It will also tell you how much of the repayment will be the interest on the loan.

Amortisation tables

The amortisation table is a snapshot of the progression of the loan and tells you how much you will have paid back at the end of each year, as the loan progresses. It also helps you understand how the interest on the loan will be paid back. It also shows you how much of the initial EMIs will be the interest and how much will be the principal will be.

Loan Amortization Table

Most banks offer car loans up to 85% of the on-road price or ex-showroom price of the car. Tip to borrowers – make a higher down payment to lower the cost of your car loan. Let’s say the total price of your dream car is Rs.15 lakh and you have Rs.5 lakh to put as down payment, then a car loan of Rs.10 lakh can be used to pay the remainder of the cost.

To calculate the monthly cost of your car loan, use the free online EMI calculator. Enter the principal loan amount, loan tenure, interest rate and processing fee into the tool and click on the ‘calculate’ button. You will get instant and accurate results in the form of an amortisation table, a pie-chart, and a colorful bar graph.

The amortisation table represents the periodic repayment schedule of your car loan. It consists of the monthly EMIs, interest payments, and the outstanding dues after each EMI payments.

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EMI Calculator To Suit Your Loan

Topbankloan has customised its EMI Calculator to suit different loan schemes. To calculate your EMIs on your personal loan, navigate to the Personal Loan EMI Calculator provided under the sites ‘Financial Tools’ section. Similarly, you can calculate EMIs on your auto and home loans using BankBazaar’s Car Loan EMI Calculator and BankBazaar’s Home Loan EMI Calculator, respectively.

Effect of loan prepayment on your EMI payments

Should you find yourself flush with cash, you may decide to prepay your loan (i.e. pay an extra amount towards principal). If so, you can calculate your new EMIs by adjusting for the amount you wish to prepay. This will let you know how much interest you save by reducing the principal outstanding. (interest is calculated on the principal outstanding)

Factors that can impact your EMI amount

When you are planning to take a loan for your financial needs, you need to calculate the amount that you will have to pay through equated monthly installments (EMIs) in order to match with your repayment capability. For this, you will need to factor in the loan amount and rate of interest (ROI) along with the term of your loan. However, your equated monthly installments (EMIs) can be impacted for a number of reasons. Mentioned below are the scenarios when a loan EMI can change:

When the interest rate on the loan changes When you are checking your monthly amount, the EMI calculator usually calculates the EMI that you have to pay using a fixed interest rate. If your loan contains a fixed interest rate then your EMI will not be affected throughout the entire loan tenure. However, in case you have opted for a scheme with floating rate of interest, your applicable ROI is subject to change depending on the ongoing repo rate announced by the Reserve Bank of India (RBI). In such a scenario, the EMI for your loan can also get impacted – negatively or positively. If you don’t want a change in your EMI amount, you can ask the lender to adjust the term of the loan instead of the EMI.
When the loan is partially repaid Most of the banks and non-banking financing companies offer the customers the benefit of making a lump sum prepayment towards their loans. Once you make a prepayment for a loan, the principal amount goes down. This, in turn, can reduce the outstanding debt that you will have to repay. Therefore, the EMI of your loan can see a decline. While you might need to pay additional charges in order to avail this facility or can be eligible to make a prepayment only after a certain amount of time, depending on the lender, many financing organisations also offer their customers the benefit of zero prepayment fee. Make sure to check the terms and conditions that your lender has regarding the prepayment facility.
When you choose a flexible EMI scheme If you avail a loan with a flexible EMI scheme, you will have the benefit of paying a monthly installment amount that suits your income. In a step-up EMI plan, the EMI amounts gradually increase as the term of the loan progresses to stay in pace with your increasing salary. This scheme better suits individuals who are at the beginning of their careers. On the other hand, in case a person chooses a step-down EMI plan, the amount of the EMI that he or she has to pay will decrease with time. This scheme is helpful for people who are close to their retirements.
When the term of the loan changes If a person manages to get his or her loan tenure extended or reduced, the EMI payable towards the loan will also increase or decrease accordingly in order to adjust to the new loan tenure. If you opt for a long tenure, you will have to pay more money towards interest in the long run. However, a shorter term of the loan will translate to less amount to be paid as interest. Therefore, a change in loan tenure should be done only with a thorough understanding of the aftereffects.

Pick a suitable loan tenure to save up on interest payments

Pick the most affordable loan by comparing EMIs for different loan tenures. This can be done by altering the loan period in the calculator; keeping the loan amount and interest rate the same. By lengthening the loan period for a chosen loan scheme, the EMI amount can be reduced. Using the calculator, you can quickly compare EMIs for different tenures and choose the one that most suits your budget.

Calculate loan EMIs for fixed and floating interest rates

Understand loan repayment schedules by altering the interest rate, keeping loan amount and tenure the same. In case of fixed rate loans, interest rates remain constant over the loan tenure. In this case, EMIs also remain constant. This is usually the case with car loans and personal loans.However, in case of floating rate loans, interest rates can vary with movements in market rates. In this case, EMIs will change. This is particularly beneficial for home loans.Input the new interest rate in BankBazaar’s EMI Loan Calculator to compare EMIs before interest rate changes and after. A new amortization schedule is also generated to reflect changes in EMIs.

EMI Calculator for Flat Rate of Interest

A fixed rate of interest is one where the interest rate on a loan remains fixed throughout the loan repayment period (loan tenure). This type of interest rate is comparatively higher than a floating rate of interest. Fixed rate of interest is better for those who don’t prefer the risk of fluctuation that is an integral part of a variable interest rate. In the case of a fixed rate of interest, the loan EMI remains the same throughout the loan tenure.

The online loan EMI calculator can be used to calculate loan EMIs with a fixed rate of interest. Depending on the results, the borrower can carefully plan his or her monthly budget in order to maintain a low debt-to-income ratio. All one has to do is enter the loan amount, loan tenure, and fixed rate of interest rate into the tool and click on the ‘calculate’ button to get instant and accurate results. If there is a processing fee charged by the bank, enter the processing fee into the too. If you want to prepay your loan before the end of its loan tenure, you can enter the prepayment amount into the tool to get a revised amortization schedule. Banks charge a prepayment penalty for loans with a fixed rate of interest.

EMI Calculator for Floating Interest Rate

Floating rate of interest changes depending on the market-lending rate. It is also known as variable rate of interest. If the lending rate increases, the floating interest rate will also increase. Due to the risk of fluctuation, the floating rate of interest is usually lower than the fixed rate of interest. With a floating rate of interest for a specified loan tenure, you can either expect your EMI to reduce or increase depending on the rise in the interest rate.

When there is an increase in the floating rate of interest on your home loan, the bank will give you the option to either increase your EMI and keep the same loan tenure or to keep your EMI the same and increase the loan tenure. If your loan tenure reaches the upper limit, then the bank will give you the option to prepay a part of your loan. Using a home loan EMI calculator for various combinations of loan tenure and interest rates can help you make a smart decision with regards to loan repayment. Some banks may waive off the prepayment penalty fee for loans with a floating rate of interest.

Types of EMI calculator

Home loan EMI calculator

The home loan EMI calculator comes packed with features that can range from the obvious to the not so obvious. It, obviously, shows the exact EMI that will be payable every month for a specific amount borrowed and a specific tenure. The feature that are not so obvious is the fact that this calculator can also provide the facility to include planned pre-payments towards the home loan. This means that when the calculator shows you the instalments payable, it has already accounted for prepayments and has also included them when showing the breakup of the expenses. The detailed break up will include the amount borrowed, the interest payable, the amount you will pay through prepayment, the processing fee and the fee for prepayment.

Car loan EMI Calculator

The car loan calculator is a tool that can be used to calculate the exact amount that you will have to pay on a monthly basis when you decide to take a car loan. This calculator too will collect information related to the amount you wish to borrow, the interest rates, the processing fee and the tenure of the loan and provide you with the amount that you will pay every month. Down payments for the vehicle don’t have to be considered when using this calculator and it too comes with the breakup of the expenses and the amortisation table.

Personal loan EMI calculator

The personal loan EMI calculator is the ideal tool for deciding how much you can afford to pay back since it is specific to personal loans. It too collects details of how much you wish to borrow, the duration, interest rates and the processing fee for the loan. It can also be customised to take into account any prepayments that you intend to make before telling you the EMI that you will have to pay.

Business Loan EMI Calculator

Business loans like any other type of loans are repaid through equated monthly installments over a specified period of time. Here again, carrying out manual EMI calculation can be time-consuming and prone to human errors. Therefore, it is advisable to use an online business loan EMI calculator that is available on the bank website or a reliable third-party website. The tool can be used any number of times for free. It is not only simple and easy to use but also instant and accurate in terms of results. One major advantage of using a business loan EMI calculator is the flexibility to try out different combinations of loan tenure, loan amount, and interest rate in order to save money on interest payments. Business Loan EMI is calculated using the below formula:

E = P*r* (1+r)^n/([(1+r)^n]-1), where E is the equated monthly installment, P is the principal loan amount, r is the interest rate, and n is the loan tenure.

Enter the business loan amount, interest rate, and loan tenure into the tool and click on the ‘Calculate’ button. You will get an amortization table which represents your periodic loan repayment schedule. The table will consist of the EMIs, outstanding dues after each EMI payment, and interest payment. Using the business loan EMI calculator, you can pick a suitable loan tenure and a loan amount within your repayment capacity. Sometimes, borrowers choose to prepay a part of the loan amount before the end of the tenure in order to reduce the repayment period or the interest payment. The EMI calculator can also be used to get a revised loan repayment schedule that includes business loan prepayment.

Simple Interest Loan EMI Calculator

A simple interest loan EMI calculator can help you calculate the simple interest on a given loan amount for a specified loan tenure at the applied rate of interest. The tool is simple and easy to use. All you have to do is input the borrowed amount, the simple interest rate, and the loan tenure into the tool. Click on the ‘calculate’ button to get instant and accurate results. For example, if you borrow a loan of Rs.3 lakh for 3 years at a simple interest rate of 3% p.a., you have to pay a simple interest of Rs.27,000 which is Rs.750 per month.

EMI Calculator in Excel

Apart from the online calculators, EMI calculators can also be configured in an Excel sheet. To do this you will need to know the formula that makes an EMI calculator works and also how to use formulae in excel sheets. The one disadvantage of the excel sheet calculator is that you need to know how to configure it and also need to input the interest rate after calculating the monthly rates. It also does not take into account the processing fee. By contrast, the online EMI calculator can take the interest rates as annual rates and convert them to monthly rates on its own. It can also include the processing fee and other smaller features like prepayments.

How to calculate your EMI using Excel

Calculating the EMI for your loan is crucial to determine whether it matches your repayment capability or not. Applying for a loan that exceeds your ability to repay the debt can lead to the rejection of your application. If you apply for a loan wherein the EMI is equal to your maximum repayment ability, your chances of defaulting severely increases. In case you are not able to check your EMI using an online EMI calculator, you can also do the same using an Excel spreadsheet. All you need to do is use the PMT function to calculate your monthly installments. The syntax for the excel function is:

PMT (rate, nper, pv)

Here,

pv = The principal amount or the present value

rate = The fixed rate of interest at which the loan is borrowed

nper = The number of payments to be made to repay the entire debt

How Are EMIs Calculated?

The mathematical formula for calculating EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]. (P is the principal loan amount, R rate of interest per month and N is the the number of monthly instalments). Manual calculations are too complicated to perform accurately, which is why many borrowers are left confused after availing a loan. Understanding this pain-point led BankBazaar to develop one of the easiest and most user-friendly online Loan EMI Calculators.

FAQs

1. Are the calculators for home, car and personal loans the same?

In most cases they can be the same since all three loans work off the same basic set of information like amount borrowed, prepayments, tenure, interest rates and processing fee however with some calculators there could be a restriction placed on the amount to borrow based on the type of loan.

2. Are calculators more accurate than excel sheets?

The only difference between the two is that with a calculator, it is a ready to use tool whereas with an excel sheet, you may have to program the calculator before you start using it. Such programing can be a little tedious and complicated, especially if you are not very comfortable with the software which makes the calculator the preferred choice.

3. Will banks provide the calculator?

Yes. These days most, if not all, banks have calculators, specific to various loans, available on their websites.

4. Why should I use an EMI calculator?

The simplest answer is that it’s fast and it’s convenient. This means that you can do multiple calculations in minutes where such calculations many take longer were you to sit down with a pen and paper. These calculators are also super accurate so it eliminates the possibility of errors in calculations, provided you provide accurate data.

5. Is the EMI shown by the calculator the same as that which the bank will ask me to pay?

When it comes to the EMI, assuming that the bank will approve the amount and tenure, the exact EMI that you will have to pay may differ slightly since there is a chance that things like the interest rates and the processing fee may be a bit different from what you used while calculating the EMI.

6. What happens if I fail to make an EMI payment?

The bank will charge a penalty fee if a borrower misses an EMI payment. A missed or delayed EMI payment will reflect on your credit report. Not making loan EMI payments on time can have a negative effect on your credit score.

7. I have taken a personal loan of Rs.5 lakh for 5 years at 12.50% interest rate. What will be my monthly EMI?

Enter the loan amount, loan tenure, and interest rate into the personal loan EMI calculator and click on ‘Calculate’. The result is as follows – your monthly loan EMI is Rs.11,249. The total cost of your personal loan is Rs.6,74,938 where Rs.5 lakh is the principal loan amount and the total interest payment is Rs.1,74,938.

8. Is my loan EMI fixed or can it change over the loan tenure?

In the case of a business loan and home loan, banks offer floating rate of interest. Therefore, your loan EMI may change with the change in interest rate. Some banks allow you keep the EMI constant while increasing the loan tenure. Loan prepayment can also change your EMI. Banks will give you the option to either keep the EMI constant and decrease the loan tenure or reduce the EMI and keep the loan tenure the same.

9. Why is it important to carry out loan EMI calculations beforehand?

Calculating the EMI before applying for a loan will help you choose a suitable loan amount and loan tenure. Based on the EMI calculation, you can adjust the loan amount and loan tenure to keep the total cost of your loan within your repayment capacity. You can also decide whether you want to prepay the loan without risking a higher interest payment.

10. Is it good to pre-close a loan before the end of its tenure?

Pre-closing your loan before the end of its tenure can have a negative effect on your credit score. Making timely EMI payments can help you improve your credit score. Therefore, opt to prepay a part of your loan (not the whole loan) and reduce the loan tenure to save up on interest payments. Banks charge a penalty fee for prepayment.