Business

What is the EMI for a 20 Lakhs Home Loan & How to Calculate?

Home loans are long-term and secured financing options available for constructing or purchasing a property. The EMI calculator helps you find out your monthly instalments for various loan amounts.

Be it business investments or funding your child’s higher education, or a loan for the home, avail Rs. 20 Lakh loan and fulfill all your funding requirements with ease. The simplified application process and minimal documentation requirements make availing of these loans quick and easy. You may apply for more than one Home Loan, and the amount you spent on legalities may go up, but you are eligible just for a maximum rebate of 1.5 Lakhs. However, you can avail of this benefit only after the house is under your possession and you have not yet initiated the payment of the principal amount to the lender.

What is home loan EMI?

Home Loan EMI is the monthly payment that one needs to pay to the lender to repay your loan amount and pay interest. Every EMI possesses two parts, firstly, the outstanding loan amount and secondly, the interest. These two components vary in every EMI, but the EMI remains the same throughout the loan period.

One can reduce the home loan EMI by making a prepayment for a certain amount of loan. The more the prepayment is made, the lesser is the outstanding principal amount.

How to calculate home loan EMI?

Home Loan EMI Calculator uses a combination of the loan amount, loan tenure, and interest rate to calculate housing loan EMI instantly. What you need is just to enter these details in the calculator to get the desired result. The home EMI calculator also tells you how much interest you would pay over the life of the loan. The important thing is that the rate of interest depends on the time period. The more is the loan tenure; the more is the amount of interest for the same loan amount and interest rate.

The EMI (or Equated Monthly Instalment) of your loan consists of the principal portion and the interest. Therefore, EMI = principal amount + interest paid on loan. The EMI usually remains fixed for the entire tenure of your loan, and it is to be repaid over the tenure of the loan on a monthly basis.

EMI Calculation for 20 Lakh Home Loan amount for Various Tenure Options:

EMI Calculated on 6.80% Rate of Interest.

Tenure Options         EMI Per Month

5 Years                          Rs. 39, 414

10 Years                        Rs. 23,016

15 Years                        Rs. 17,754

20 Years                        Rs. 15,267

25 Years                        Rs. 13,881

30 Years                        Rs. 13,039

*The assessment of values is subject to changes as per the data entered in the calculator. These calculators are provided only as general self-help Planning Tools. Results depend on many factors, including the assumptions you provide. We do not guarantee their accuracy or applicability to your circumstances.

EMI on a 20 lakh home loan for 20 years

Loan Amount       Interest rate      EMI

Rs.20 lakh              6.75%*          Rs.19,300

Benefits of using this calculator

An online home loan EMI calculator can help you out significantly by providing the below mentioned benefits:

  • Help you determine the right amount that can make your EMIs affordable.
  • It enables you to choose the correct tenor to ensure the monthly instalments are easily manageable.
  • It eliminates the need for manual calculation, which can deliver inaccurate results and be time-consuming.
  • Use anywhere – computer, mobile, tablet, etc.

The interest portion is higher in the initial months compared to the principal. As you repay, the principal increases while the interest decreases.

The EMI calculator is useful in planning your cash flows for servicing your home loan.

In Conclusion:

Home Loan EMI calculator gives a clear understanding of the amount that needs to be paid towards the EMIs and helps make an informed decision about the outflow towards the housing loan every month.

This helps estimate the loan amount that can be availed and helps in assessing the own contribution requirements and cost of the property. Therefore, knowing the EMI is crucial for the calculation of home loan eligibility and planning your home buying journey better.

All you need to do is input the following to arrive at your EMI:

Loan Amount: Input the desired loan amount that you wish to avail

Loan Tenure (In Years): Input the desired loan term for which you wish to avail of the housing loan. A longer tenure helps in enhancing the eligibility

Interest Rate (% P.A.): The input interest rate.

Related Articles: Personal Loan EMI calculator

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Shankar

Shankar is a tech blogger who occasionally enjoys penning historical fiction. With over a thousand articles written on tech, business, finance, marketing, mobile, social media, cloud storage, software, and general topics, he has been creating material for the past eight years.

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