An Equated Monthly Installment or commonly known as ( EMI) is the amount you pay back in installments to the financial institutions towards repayment of your loan. Your Home Loan EMI consists of Principal and Interest component. In the beginning, the interest component is higher than the principal component and over a period of time the interest component decreases vis-à-vis the principal.
You just have to enter some basic information like:
- Loan Amount you wish to avail
- No. of months you would like to repay the home loan
- Rate of interest offered by the lenders
You can also use the slider to increase/decrease the values in the input parameters. The resultant EMI will be displayed on the top right hand corner of the EMI calculator.
The calculator will also display the total outgo in terms of principal and interest component for the entire tenure of loan.
While the required loan amount and interest rate remaining constant, you can increase/decrease the tenure as per your comfort level. Increasing the tenure will decrease your EMI amount but at a same time will increase the interest component amount and vice versa.
You can also compare EMI’s at different interest rate offered by financial institutes to choose the most suitable option as per your affordability.