Understanding Your Home Loan EMI in India
A home loan EMI (Equated Monthly Installment) is the fixed amount you pay your lender every month, covering both principal and interest. The advertised interest rate is rarely the only cost — processing fees, GST, stamp duty, and registration charges all add to your real outgo.
Under Section 80C of the Income Tax Act, you can claim up to ₹1.5 lakh per year on principal repayment. Under Section 24B, you can claim up to ₹2 lakh per year on interest paid for a self-occupied property. Our calculator estimates these first-year savings for you.
Frequently Asked Questions
How is home loan EMI calculated?
EMI is calculated using the formula P × r × (1+r)^n / ((1+r)^n - 1), where P is the principal, r is the monthly interest rate, and n is the number of months.
Can I get a 100% home loan?
No. RBI guidelines restrict home loans to 75%-90% of the property value. You must contribute the remaining as a down payment.
What tax benefits are available on home loans?
Under Section 80C you can claim up to ₹1.5L on principal, and under Section 24B up to ₹2L on interest paid per financial year for a self-occupied property.