Question 1

How is EMI calculated?

Accepted Answer

EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months. This calculator applies the same reducing-balance formula banks and NBFCs use in India.

Question 2

What is a loan moratorium and how does it affect EMI?

Accepted Answer

A moratorium is an agreed break from paying EMI (usually 3–6 months). Interest keeps accruing on the outstanding balance and is typically capitalized — added back to the principal. After the moratorium, the bank recalculates a higher EMI for the remaining tenure. This calculator shows the capitalized interest, revised principal and the new EMI.

Question 3

What is the difference between fixed and floating EMI?

Accepted Answer

Under a fixed rate the EMI stays the same for the entire tenure. Under a floating rate (linked to RBI's Repo Rate / EBLR) the EMI or tenure changes whenever your bank revises the rate. Most home loans in India are now floating, while personal and car loans are usually fixed.

Question 4

Is home-loan EMI eligible for income-tax deduction?

Accepted Answer

Yes. Principal repayment qualifies under Section 80C up to ₹1.5 lakh/year (Old Regime only). Interest paid qualifies under Section 24(b) up to ₹2 lakh/year for a self-occupied house. First-time buyers may also claim Section 80EEA up to ₹1.5 lakh — subject to conditions. Deductions under 80C, 24(b) and 80EEA are NOT available under the New Regime for self-occupied property.

Question 5

Does prepayment reduce EMI or tenure?

Accepted Answer

You get to choose. Prepaying a floating-rate home loan typically has no charge — most borrowers keep the EMI same and reduce the tenure, which saves the most interest. Fixed-rate loans may attract a 2–4% foreclosure fee.

Question 6

What credit score is needed for the best interest rate?

Accepted Answer

A CIBIL / Experian score of 750+ generally unlocks the lowest published rates. Below 700, expect a 1–3% higher rate or a co-applicant requirement.

Question 7

Are personal-loan EMIs tax deductible?

Accepted Answer

Generally no — personal loans give no tax benefit. Exception: if the loan is used for home construction/renovation, business, or higher education, the interest can be claimed under Section 24(b), Section 37 or Section 80E respectively — with proper documentation.

Year	Principal paid	Interest paid	Balance
1	₹59,707	₹2,52,709	₹29,40,293
2	₹64,984	₹2,47,432	₹28,75,309
3	₹70,728	₹2,41,688	₹28,04,580
4	₹76,980	₹2,35,436	₹27,27,600
5	₹83,785	₹2,28,632	₹26,43,815
6	₹91,190	₹2,21,226	₹25,52,625
7	₹99,251	₹2,13,166	₹24,53,374
8	₹1,08,024	₹2,04,393	₹23,45,351
9	₹1,17,572	₹1,94,844	₹22,27,779
10	₹1,27,964	₹1,84,452	₹20,99,815
11	₹1,39,275	₹1,73,141	₹19,60,540
12	₹1,51,586	₹1,60,831	₹18,08,954
13	₹1,64,985	₹1,47,432	₹16,43,969
14	₹1,79,568	₹1,32,849	₹14,64,402
15	₹1,95,440	₹1,16,977	₹12,68,962
16	₹2,12,715	₹99,701	₹10,56,247
17	₹2,31,517	₹80,899	₹8,24,730
18	₹2,51,981	₹60,435	₹5,72,749
19	₹2,74,254	₹38,163	₹2,98,495
20	₹2,98,495	₹13,921	₹0

Loan EMI Calculator

Enter loan details

Year-wise amortization

Plan the tax side of your loan

Income Tax Calculator

GST Calculator

Old vs New Regime

Form 26QB — TDS on Property

Tax Advisory Services

Talk to a Tax Expert

EMI Calculator FAQs