Free tools by Finaccle
Loan EMI Calculator
Calculate your monthly EMI, the total interest you will pay and a year-by-year repayment schedule for any loan.
How EMI is calculated
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. A ₹50 lakh home loan at 8.5% for 20 years gives an EMI of about ₹43,391, with total interest of about ₹54 lakh.
How to reduce the interest you pay
A shorter tenure raises the EMI but cuts total interest sharply. Part-prepayments early in the loan, when most of each EMI goes to interest, save the most. Floating-rate loans to individuals carry no prepayment penalty. Compare the processing fee and reset terms as well as the headline rate.
Frequently asked questions
Are there tax benefits on loan interest?
In the old regime, interest on a home loan for a self-occupied house is deductible up to ₹2 lakh a year and principal counts towards the ₹1.5 lakh investment deduction. Interest on an education loan is deductible in full for up to 8 years. Business loan interest is a business expense.
What documents are needed for a business loan?
Lenders usually ask for KYC, two to three years of income tax returns and audited financials, GST returns, 12 months of bank statements and details of existing loans. A CMA report is often needed for working capital limits.
Is the EMI fixed for the whole tenure?
Only for fixed-rate loans. Most home loans are floating-rate, so the bank changes the EMI or the tenure when its benchmark rate moves.
Need a hand? Business loan advisory or book a free consultation with our CA-led team.