📐 Formula Used
EMI = [P × r × (1+r)^n] / [(1+r)^n – 1] where P = Principal, r = Monthly Rate, n = Months
Frequently Asked Questions
What is EMI?
EMI (Equated Monthly Instalment) is the fixed monthly amount you pay to repay a loan, comprising both principal and interest portions.
How is EMI calculated?
EMI = [P × r × (1+r)ⁿ] / [(1+r)ⁿ – 1], where P = principal, r = monthly interest rate (annual rate/12/100), n = total months.
What happens if I pay extra EMI?
Prepayments reduce the principal outstanding, which in turn reduces total interest and can significantly shorten the loan tenure.
Which bank offers the lowest home loan rate?
Interest rates vary and change frequently. Check RBI's lending rate page and compare from multiple banks before applying.