How to Calculate EMI for a Home Loan?

Everyone once in their life wants to purchase their dream home. But as we all know that the process of purchasing and decorating a house can be strainful both financially and mentally. However, you can relax a bit due to several housing schemes made available by the banks and NBFCs in the recent past.  These schemes are quite flexible and you can repay the lender using EMIs. EMI as we all know is the amount we pay back to the lender, on a monthly/quarterly/yearly basis. Earlier, the calculations were all manual and subject to error. But now with the home loan emi calculator available online. You can make quick choices from the comfort of your home. This feature is available on all official websites of the banks and NBFCs. The Home Loan EMI calculator helps you determine your EMI based on your income, rate of interest and tenure. In this article, we will help you to understand how you can learn about your EMI amount using the same and make decisions accordingly. 

How to Calculate EMI using the Calculator?

The home loan EMI calculator is an online tool developed by lenders to help borrowers determine what amount of EMI they might have to pay. The calculator is made available on their official website. The EMI amount is determined by factors such as the rate of interest, tenure, processing charges and sometimes even the area or plot in concern. Given below are the steps you need to follow to determine your EMI using the online calculator.

  • Visit the official website of the lender.
  • Under the option of “Home loan” search for EMI calculator. 
  • Enter the principal loan amount, your tenure along with the rate of interest. 
  • The calculator will show you the final results immediately after you hit “Enter.”
  • You can change the numbers in all three places until you get your desired results.

Features of Home Loan 

Let us understand the features of a home loan. 

Wide purpose 

It is often misunderstood that home loans are only there to help you purchase a house however, that is not true. A home loan can help you afford a commercial space, or a plot of land or even help you redecorate or renovate your house. 

Long tenure available

Among all available loan schemes, the home loan is said to have the longest available tenure. The lender provides you with the tenure according to your comfort and ability to repay them on time. They offer you a tenure of up to 20 years. 

Huge loan amount

A home loan is among a few of the loans that give you a large sum of funding as the loan amount. The lender can offer you a loan amount of up to 20 Lakhs. The loan amount depends on factors such as your eligibility, income and repayment capacity. 

Low rate of interest

If you are looking for a low-interest rate to help you with anything related to your home, Home loans are perfect for that. It has the lowest rate of interest among all loan schemes. They offer you a rate of interest starting from 6.5% and can rise to 12.00%. Although, the rate of interest can differ depending on the lender and your capacity to repay the borrowed loan amount. 

Balance transfer feature

This is a new feature of the home loan scheme. This feature helps you transfer your home loan from one lender to another. Even if you have taken a Home loan from a Commercial bank, Private or foreign bank or even with the Central or State government, you can still transfer your Home loan. But to be able to transfer the Home loan, you need to surpass all the eligibility criteria stated by the lender. 

Also Read: Top Tips to Follow When Availing a Mortgage Loan

Home loan – Eligibility criteria

Before we check the steps on how to calculate the EMI on home loans, let us first figure out the eligibility criteria for a home loan. Given below are the eligibility requirement for salaried and self-employed individuals. 

Salaried employee

  • You need to be an Indian citizen. 
  • The age group you need to be between is 18 to 60 years. 
  • The minimum wage you earn monthly should be above 20 thousand.  


  • You need to be an Indian citizen. 
  • You need to be in the age group of 18 to 65 years old. 
  • Your minimum salary wage should be at least above 2 lakhs per annum. 
  • The company you are currently an employee of should have been existing for 3 years. 

Home loans are the best option if you want to purchase your home quickly. The scheme offers you a long tenure, a large amount of loan amount along with a low rate of interest compared to any other loans available. The EMI home loan calculator helps you determine what loan amount, rate of interest and tenure give you an EMI, that you are comfortable paying.



Sakshi is a Financial Advisor who helps people with investments and help them to get more out of their investment.
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