Home Loan EMI Calculator
An EMI Calculator or Equated Monthly Installment Calculator is a tool which calculates your monthly EMI payments for a Home Loan within a few seconds.

To use the Home Loan EMI Calculator, all you need to do is enter the variables like principal amount, interest rate, tenure, etc. in the calculator and it will give you the EMI amount instantly.

It is a free tool available on Magicbricks 24 X 7. You can use the EMI Calculator to make an informed decision by comparing various loan EMIs before you finalise a Home Loan.

How to Calculate Home Loan EMI Using the Formula?
The classic way of calculating the EMI is by using the formula stated below:
EMI = [P x R x (1+R)^T]/[(1+R)^ (T-1)].
The variables used here stand for:

EMI – Equated Monthly Installments

P – Principal Amount of the Loan:

R – Rate of Interest on the Loan (monthly)

T – Tenure of the Loan or the no. of installments to be paid (monthly)

Let’s take an example to understand this clearly. For instance, you have taken a Home Loan of Rs 2 Lakh which is to be paid in 2 years at an interest rate of 20% per annum.

First, convert the yearly interest rate into months. We can obtain the monthly interest rate by dividing the yearly interest rate by no. of months in a year i.e. 12. So, monthly interest will be 20/12 = 1.66%.
Now, put all the variables in the formula:b

EMI = [P x R x (1+R)^T]/[(1+R)^T-1]

EMI= [2,00,000 x 1.66/100 x (1+1.66/100) ^ 24 / [(1+1.66/100) ^ 24 – 1)

EMI= Rs. 10,179

Even, the EMI Calculator uses the same formula to calculate the EMI of Home Loan. We also recommend calculating the EMI via EMI Calculator as it is accurate, requires minimal calculation and can determine the EMI within seconds.

Home Loan Interest Rates

Interest Rate is the cost of borrowing money and is calculated as a percentage of the amount borrowed. Interest rates may vary from bank to bank. As a borrower, you should try to choose a lender that offers a home loan at the lowest interest rate for your specific requirements.

There are two types of home loan interest rates you can choose from:

Fixed Interest Rate: This type of interest rate remains unchanged throughout the loan tenure. Thus, your EMI also remains the same. Choosing Fixed Interest Rate Loan is better if you expect the rates to increase in the future.

Floating Interest Rate: This type of interest rate keeps changing in line with the market rates. Thus, your EMI also keeps fluctuating. Floating interest rate loans are better if you expect interest rates to go down in the future.

Latest Home Loan Interest Rates

Bank/Financial Institute	Interest Rate	Processing Fee (%age of loan amount)
State Bank of India	From 6.95% p.a.	Upto 0.50% +GST
HDFC ltd.	From 6.95% p.a.	Upto 0.50% +GST
Sundaram Home Finance ltd.	From 7.75% p.a.	Upto 0.50% +GST
L&T Housing Finance Ltd.	From 8.40% p.a.	Upto 0.50% +GST
PNB Housing Finance Ltd	From 8.45% p.a.	Upto 0.50% +GST
Cholamandalam HFL	From 10% p.a.	Upto 0.50% +GST
Magma Housing Finance	From 11.50% p.a.	0.5% + Other Charges

Home Loan interest rates updated on 7 Dec 2020.

The interest rates mentioned above are subject to change at any time without prior notice.
Tips to Reduce Your Home Loan Interest Rate

There are various ways you can reduce your home loan interest and EMI payments.

Choose a shorter tenure: When you choose a shorter tenure home loan, though the EMI is higher, your overall interest payment is reduced drastically.

Apply for a Balance Transfer Loan: With a Balance Transfer home loan, you can transfer your existing home loan to another lender that is offering lower interest rates.

Make loan prepayments: In the initial years of home loan, you pay more towards the interest and less towards the principal amount. Therefore, if you make prepayments regularly, you can reduce your interest burden.

Choose the right EMI calculation method: There are two ways banks can calculate your EMI: Flat Rate method and Reducing Balance method. Under the Flat Rate method, the interest is calculated on the original loan amount for the entire tenure; thus your interest outgo remains equal throughout the tenure and doesn’t decrease as the principal amount reduces. However, in the latter method, the interest is calculated and revised every month based on your outstanding principal amount.

Home Loan Eligibility

All the borrowers are required to meet certain eligibility criteria to get their home loan approved. If you don’t meet any of the eligibility criteria set by the bank, your application may get rejected. Understanding the home loan eligibility criteria can help ensure a smooth approval process for you.
Factors Affecting Home Loan Eligibility Criteria

Here are some of the key factors that may affect your home loan eligibility:

Age: It’s one of the most important factors to determine the home loan tenure. For instance, getting a home loan with 30-year tenure is easier for a young individual compared to an aged individual.
Income: Whether you are a salaried or self-employed individual, you must meet the minimum income requirement set by the banks. The income requirement may vary from bank to bank.
CIBIL Score or Credit Score: This score is used by lenders to determine your creditworthiness. Higher the score, the better the chances of loan approval. A CIBIL score of above 550 and near 900 is generally considered good. However, if your CIBIL score is not good, you can still apply for a home loan.
Employment/ Business type: Lenders also consider your job type or business type to determine your eligibility. Applicants with a stable job or business income have a higher chance of getting the loan approved. Check out some of the key home loan eligibility criteria set by major lenders in India:    

Bank-wise Home Loan Eligibility Criteria

Bank/Financial Institute	Age (in years)	Resident Type	Min. Monthly Income (primary applicant)	Loan Amount
State Bank of India	18 – 70	Indians and NRIs	₹ 15,000	₹ 10 lakh – ₹ 10 crore
HDFC ltd.	18 – 70	Indians and NRIs	₹ 15,000	₹ 5 lakh – ₹ 5 crore
Sundaram Home Finance ltd.	Salaried: 18 – 60 Self-employed: 18 – 65	Indians and NRIs	₹ 15,000	₹ 2 lakh – ₹ 4 crore
L&T Housing Finance Ltd.	21 – 60	Indians and NRIs	₹ 15,000	₹ 5 lakh – ₹ 20 crore
PNB Housing Finance Ltd	18 – 70	Indians and NRIs	₹ 15,000	₹ 5 lakh – ₹ 3 crore
Cholamandalam HFL	21 – 60	Indians and NRIs	₹ 15,000	₹ 5 lakh – ₹ 50 lakh
Magma Housing Finance	21 – 65	Indians and NRIs	–	₹ 5 lakh – ₹ 1 crore

  Home Loan interest rates updated on 7 Dec 2020.
The interest rates mentioned above are subject to change at any time without prior notice.

Documents Required for Home Loan

For successful and faster processing of your Home Loan, you need to furnish a list of documents. Although the complete list of documents required may vary from bank to bank, there are certain documents that are generally required to be submitted with the application.

In order to make your experience hassle-free, here’s a document checklist for you:
1. Fully completed application for Home Loan
2. Loan applicant’s Passport size photographs
3. Identification Proof (Any of them)

Driving License

Passport

Aadhar Card

Voter I Card
4. Age Proof (Any of them)

PAN Card

Passport

Driving License

Birth Certificate

10th class Marksheet

Bank Passbook
5. Residence Proof

Utility Bill (Electricity, Telephone, Water, Gas Bill/Slip)

Aadhar card

Voter ID card

LIC Policy slip

Ration card

Letter of Public authority verifying the applicant’s address
6. Proof of Income

(For Salaried Applicants) Last 2 Months Payslip Form 16

Increment or Promotion Letter

IT returns of the last 3 years

Investment proofs such as Fixed Deposits, Shares, etc.

(For Self-employed)

Business License details (or any other equivalent document)

Last 3 years IT returns

Balance Sheet & Profit and Loss Statement of Firm/Company (attested by a CA)

Professional Practice License (For Doctors, Lawyers, Consultants, etc.)

Registration Certificate of Establishment (For Shops, Factories, etc.)

Proof of Business Address

Other Important Documents for Home Loan
1. Occupancy Certificate
2. NOC from Builder/Society
3. Registered Sale Deed, Stamped Agreement of Sale or Allotment Letter obtained from the Builder(original copy)
4. A detailed estimate of the construction cost of the House
5. Receipts of:

Advance payments made towards the purchase of flat (original copy)

Payment or bank account statements showcasing payments made to the Builder or Seller

Land tax/Property Tax

Possession certificate issued by the revenue authority (Original copy)
6. Copies of Maintenance and Electricity Bills
7. An approved copy of the building plan (key plan/floor plan in case of purchase of flats)

Home Loan Prepayment Calculator

What is Home Loan Prepayment?

As the name suggests, prepayment signifies the early payment of a Home Loan before its maturity. For e.x. If you have got a big amount in your hand and you want to use it to ease your liability then you can use the prepayment option. This will eventually reduce the tenure or the EMIs to be paid.

What is a Home Loan Prepayment Calculator?

It is a tool that you can use to determine the impact of home loan prepayment. A prepayment usually helps reduce your EMI or tenure or both. With this calculator, you can figure out how much you will save by reducing the tenure.

How to use a Home Loan Prepayment Calculator?
You can easily use the Home Loan prepayment calculator on Loancart by following these steps:
1.Enter the required details including:
a. Loan amount
b. Tenure
c. Rate of Interest
d. Installments paid
e. Prepayment amount
f. Once you enter such details, click “Calculate”.
2. After that, the calculator will tell you
EMI Savings: Amount you have saved on your EMI by reducing it and monthly EMI savings using prepayment option.

Tenure Savings: Reduction in the Tenure of loan as a part of the prepayment option.

Home Loan Balance Transfer

What is Home Loan Balance Transfer?

Home Loan Balance Transfer is the process in which a loan borrower can easily transfer his/her outstanding principal amount to another bank or financial institute to get a better rate of interest as well as better features. The entire process of Home Loan Balance Transfer helps in saving the extra amount to be paid on the interest rates.

Eligibility for Home Loan Balance Transfer

To become eligible for Home Loan Transfer, you need to fulfill the below criteria:

1. Your Property should be ready-to-move-in or already occupied
2. You have already made the payment for at least 12 months EMIs
3. There are no outstanding dues on your existing loan.

Documents Required for Home Loan Balance Transfer
You need to get these documents ready before applying for a Home Loan Balance Transfer:
a) Foreclosure letter:

A letter which is issued by your current bank in which the outstanding principal amount will be mentioned so that you can carry forward from the same amount when you transfer your loan to the new bank.

Other documents:
For Salaried:
1. Identity Proof
(Aadhar Card, PAN Card, Voter ID Card, Driving License, NREGA card, etc.)
2. Address Proof
(Passport, Aadhar Card, Ration Card, Voter ID Card, Driving License, Electricity/Water Bill, etc.)
3. Form 16 or recent salary payslips(last 3 months)
4. Bank account statement(last 6 months)

For Self-employed
1. Identity Proof
(Aadhar Card, PAN Card, Voter ID Card, Driving License, NREGA card, etc.)
2. Address Proof
(Passport, Aadhar Card, Ration Card, Voter ID Card, Driving License, Electricity/Water Bill, etc.)
3. Copy of last year’s Income Tax return
4. Previous years’ Balance Sheet and P&L statement
5. Copy of registration of the business

Home Loan Processing Fee

Processing fee is a one-time fee charged by lenders for processing your loan application. This fee generally varies from bank to bank and is mostly charged after your home loan application is approved.

The fee is generally calculated as a small percentage of the loan amount. Check out the table below to know more about home loan processing fees charged by various banks and financial institutions in India:

Bank/Financial Institute	Processing Fee (%age of loan amount)	Interest Rate (starting from)
State Bank of India	Upto 0.50% +GST	6.95% p.a.
HDFC ltd.	Upto 0.50% +GST	6.95% p.a.
Sundaram Home Finance ltd.	Upto 0.50% +GST	7.75% p.a.
L&T Housing Finance Ltd.	Upto 0.50% +GST	8.40% p.a.
PNB Housing Finance Ltd	Upto 0.50% +GST	8.45% p.a.
Cholamandalam HFL	Upto 0.50% +GST	10% p.a.
Magma Housing Finance	Upto 0.50% +GST	11.50% p.a.

Home Loan interest rates updated on 7 Dec 2020.
The interest rates mentioned above are subject to change at any time without prior notice.

Zero Processing Fee Home Loans

Most banks charge a processing fee in the range of 0.5% – 1% of the loan amount. However, certain lenders offer processing fee waiver from time to time. You can check with your lender about such offers before you apply for a loan. Please know that even if your processing fee is waived, you may still have to pay other charges involved.

Home Loan Application Status

If you have applied for a home loan, you can check the status of your application through any of the following methods:

View Home Loan Application Status Offline

Call Customer Care: You can call up the customer service department of the bank to check your application status. The customer support executive might ask for your application ID/ reference number.

Visit the bank branch: You can also visit the bank branch to check the status of your application.

View Home Loan Application Status Online

You can also check the status of your application through the bank’s website. No matter where you are, simply visit the website and enter the required details like your phone number to know the application status. Some banks might also ask for your Application ID or Reference number along with your Date of Birth.

Home Loan Tax Benefits

Getting a Home Loan often turns out to be an expensive affair but if you are well-informed, a lot of your money can be saved through tax rebates as per Income Tax Act, 1961. Also, in the recent financial budget of 2020, the government has continued to extend tax benefits on home loans. So, let’s have a look in detail on how to take the optimum advantage of tax benefits on a Home loan.

Under which sections you can avail Tax benefits?

According to the Income Tax Act, 1961, you can avail tax benefits under:
1. Section 80 C
– Rs 1.5 lakh rebate on the principal amount of the Home Loan inclusive of stamp duty and registration fees (for a self-occupied and rented property).
– You can claim the deduction once you have completed the construction.
– You can’t sell your property for the next 5 years to claim the deduction.
– In case, you sell the property within the 5 years, the deduction claimed will be automatically revoked at the time of selling it.
– In case of co-owners or co-borrower, each can claim deduction on the principal amount, upto a maximum of Rs 1.5 Lakh.
2. Section 24 –
– You can claim a deduction of upto Rs 2 lakhs on your home loan interest if you’re residing in that particular property. If you are living in a rented house, the entire interest is waived off.

3. Section 80 EE

– The loan must be sanctioned between 1st April 2016 and 31st March 2017
– If you are buying the house for the first time, you can avail an extra benefit up to Rs 50,000 on the interest amount.
– Your property is valued less than Rs 50 Lakh.
– The loan amount taken should not exceed Rs 35 Lakh

Tax Benefits for the Current Financial Year: 2020-21

Here you will know about the yearly rebates on the interest paid on the Home Loan

– You can claim a rebate of Rs 2 Lakh for a self-occupied home. You can claim this amount only if you complete the construction within 5 years. In case, you fail to do so, you will only get the rebate of Rs 30,000 only.
– If your property is rented, you can claim any amount you paid as interest as there is no limit of it.
– In the case of co-owners or co-borrower, each can claim up to a maximum deductible amount
– If your property is on rent, you can claim any amount spent as interest irrespective of its completion or not.

Home Loan Application Process

Getting a home loan has become very easy these days. In fact, you don’t even have to step out of your home to apply for a home loan. With new and advanced home loan portals like Loancart Home Loans, you can easily compare home loans right on your smartphone & apply online in just a few minutes.

Take a look at some of the common steps involved in getting a home loan:

Step 1: Fill out the application form

This requires you to provide some basic details about yourself as well as the property you’re buying. You can fill the application form online or you can visit a bank branch as well.

Step 2: Documents & Background verification

Once you submit your application along with the supporting documents, the bank will verify all the documents to make sure you’re a genuine borrower. In addition, most lenders also conduct a background check to ensure your creditworthiness.

Step 3: Processing fee payment

Once the bank has verified all the details, it starts your home loan process. At this stage, you will have to pay a processing fee. It’s a one-time fee charged by most lenders for processing your application. It generally ranges from 0.5% to 1% of loan amount.

Step 4: Loan approval

At this stage, the bank decides whether you approve or reject your application. The decision is made after carefully considering various factors, including your age, income, employment, credit score, etc. It also involves determining loan amount to be approved and the rate of interest.

Step 5: Property documents

Once your loan is approved, you will have to submit your property’s original documents to the bank. The lender keeps the documents until you repay the loan in full.

Step 6: Loan disbursement

Finally, the bank disburses the loan amount following registration of the loan deal. The amount is deposited into your account.

Home Loan Types

Different Types of Home Loans Available in India

Banks and financial institutions offer different types of home loans for your unique requirements. Check out some of the popular types of home loans available in India:

Home Purchase Loan

Most commonly available, this loan is offered by banks for purchase of residential property, including flats, apartments, villas, etc. Banks offer a maximum home purchase loan of upto 90% of the property’s market value.

Land Purchase Loan

Also known as Plot Purchase Loan, this home loan is available for purchase of land or plot for either construction or for investment purpose.

Home Construction Loan

If you already own land, you can avail home construction loan to pay for the cost of construction of your new home. The loan amount is approved based on the estimated cost of construction.

Home Improvement Loan

This loan is generally available for making renovations or repairs to an existing residential property.

Home Extension Loan

This home loan is preferred when you are planning to expand your home, including adding extra rooms or making any alteration to the existing structure.

Balance Transfer Home Loan

This loan helps you transfer your existing home loan from one bank or financial institution to another. Balance Transfer home loan allows you to take advantage of lower interest rates offered by the new lender.

Bridge Loan

This is generally availed by those who need immediate funds for down payment of the new home. These individuals usually pay for the new home by selling their existing property.

Housing Scheme

PMAY CLSS (Credit Linked Subsidy Scheme): Step to avail Home Loan subsidy

Pradhan Mantri Awas Yojana CLSS is a subsidy scheme launched by the Ministry of Housing & Urban Power Alleviation (MoHUA) to promote ‘Housing for All’ mission. The scheme caters to the housing needs of:

– Economically Weaker Section (EWS)
– Low Income Group (LIG)
– Middle Income Group 1 (MIG 1)
– Middle Income Group 2 (MIG 2)

Under this scheme the Govt. provides subsidy on home loan interest rates to the people falling in the above-mentioned categories. The benefits of this scheme can be availed for the purchase of a new/resale house as well as for the construction, improvement/extension of existing Kucha/Semi-pucca houses.

Eligibility criteria for PMAY (CLSS):

To avail the subsidy under PMAY(CLSS), you need to fulfil the following eligibility criteria as per the income groups:

1. Economically Weaker Section (EWS)/ Low Income Group (LIG)

a) Annual Income:
For EWS – Rs 3 lakh

For LIG – Rs 3 lakh to Rs 6 lakh

b) Woman ownership :
The ownership of a woman has been made mandatory by the Government. Whether the house is new or existing, it should be in the name of an adult female member or in joint ownership with wife (if married). However, if the subsidy is being availed for the construction or extension/renovation of an existing Kucha/semi-pucca house. Also, if there is no adult female member in the family, then only the sole ownership of a male member of a house is acceptable.

c) Carpet area:
The carpet area of a house must be:

For EWS: Upto 30 square metres.

For LIG: Upto 60 square metres.

2. MIG (1 & 2)

a) Annual Income:
For MIG-1: Between Rs 6 lakh to Rs 12 lakh

For MIG-2: Between Rs 12 lakh to Rs 18 lakh

b) Woman ownership :
In this category, the ownership of a woman is not mandatory.

c) Carpet area:
The carpet area of the house must be:

For MIG-1: 160 square metres.

For MIG-2: 200 square metres.

Along with the eligibility criteria, the applicant must fulfil the below conditions which are stated below:

1. The beneficiary must not own any pucca house in his/her name or his/her family member’s name in any part of India.
2. For married couples, either spouse or both in joint ownership are eligible for a single subsidy.
3. The beneficiary family have not availed benefits previously from any other housing scheme

Step-by-step process to claim PMAY subsidy

1. Once the amount of your loan is disbursed, your details will be sent to National Housing Bank (NHB) by your lender for further verification.
2. After verifying the required details, the NHB will approve the subsidy to eligible applicants.
3. After the approval, the subsidy amount will be disbursed to the eligible applicant’s lender.
4. Once the lender receives the subsidy amount, the lender will credit the amount in the applicant’s account.

Scheme Details for PMAY-CLSS

Details	EWS	LIG	MIG 1	MIG 2
Eligible annual household income	Upto Rs. 3 lakh	Rs 3 lakh to Rs 6 lakh	Rs 6 lakh to Rs 12 lakh	Rs 12 lakh to Rs 18 lakh
Carpet area (max.)	30 sq.m.	60 sq.m.	160 sq. m	200 sq. m
Subsidy calculated on a max. loan of	Rs. 6 lakh	Rs. 6 lakh	Upto Rs 9 lakh	Upto Rs 12 lakh
Annual interest rate on subsidy	6.50%	6.50%	4.00 %	3.00 %
Subsidy amount (maximum)	Rs. 2.67 lakh	Rs. 2.67 lakh	Rs 2.35 lakh	Rs 2.30 lakh
Maximum loan tenure (in years)	20 yrs.	20 yrs.	–	–
Discount rate to calculate Net Present Value (NPV) of the interest subsidy	9%	9%	–	–
Woman Ownership	Mandatory (except for loan availed for construction)	Mandatory (except for loan availed for construction)	Not Mandatory	Not Mandatory
Scheme validity	31 March 2022	31 March 2022	31 March 2022	31 March 2022