For 20 Years (240 Installments)
48.0% of total repayment
108.3% of principal value
Principal + Total Cumulative Interest
Home Loan (Residential Housing)
Purchase of ready-to-move flats, under-construction apartments, independent house construction, or plot purchase.
Part-Prepayment Simulator
Calculate interest saved by prepaying
Top-Up Loan Simulator
Calculate additional credit on existing loan
Loan Repayment Breakdown
Proportion of Principal vs Total Interest
Loan Amortization Schedule
Reducing balance principal and interest trajectory
| Year | Opening Bal. | EMI Paid | Principal | Interest | Closing Bal. | Paid % |
|---|---|---|---|---|---|---|
| Year 1 | ₹50.00 L | ₹5.21 L | ₹99.5 k | ₹4.21 L | ₹49.00 L | 2% |
| Year 2 | ₹49.00 L | ₹5.21 L | ₹1.08 L | ₹4.12 L | ₹47.92 L | 4% |
| Year 3 | ₹47.92 L | ₹5.21 L | ₹1.18 L | ₹4.03 L | ₹46.74 L | 7% |
| Year 4 | ₹46.74 L | ₹5.21 L | ₹1.28 L | ₹3.92 L | ₹45.46 L | 9% |
| Year 5 | ₹45.46 L | ₹5.21 L | ₹1.40 L | ₹3.81 L | ₹44.06 L | 12% |
| Year 6 | ₹44.06 L | ₹5.21 L | ₹1.52 L | ₹3.69 L | ₹42.54 L | 15% |
| Year 7 | ₹42.54 L | ₹5.21 L | ₹1.65 L | ₹3.55 L | ₹40.89 L | 18% |
| Year 8 | ₹40.89 L | ₹5.21 L | ₹1.80 L | ₹3.41 L | ₹39.09 L | 22% |
| Year 9 | ₹39.09 L | ₹5.21 L | ₹1.96 L | ₹3.25 L | ₹37.13 L | 26% |
| Year 10 | ₹37.13 L | ₹5.21 L | ₹2.13 L | ₹3.07 L | ₹35.00 L | 30% |
| Year 11 | ₹35.00 L | ₹5.21 L | ₹2.32 L | ₹2.89 L | ₹32.68 L | 35% |
| Year 12 | ₹32.68 L | ₹5.21 L | ₹2.53 L | ₹2.68 L | ₹30.15 L | 40% |
| Year 13 | ₹30.15 L | ₹5.21 L | ₹2.75 L | ₹2.46 L | ₹27.40 L | 45% |
| Year 14 | ₹27.40 L | ₹5.21 L | ₹2.99 L | ₹2.21 L | ₹24.41 L | 51% |
| Year 15 | ₹24.41 L | ₹5.21 L | ₹3.26 L | ₹1.95 L | ₹21.15 L | 58% |
| Year 16 | ₹21.15 L | ₹5.21 L | ₹3.55 L | ₹1.66 L | ₹17.60 L | 65% |
| Year 17 | ₹17.60 L | ₹5.21 L | ₹3.86 L | ₹1.35 L | ₹13.75 L | 73% |
| Year 18 | ₹13.75 L | ₹5.21 L | ₹4.20 L | ₹1.01 L | ₹9.55 L | 81% |
| Year 19 | ₹9.55 L | ₹5.21 L | ₹4.57 L | ₹63.6 k | ₹4.97 L | 90% |
| Year 20 | ₹4.97 L | ₹5.21 L | ₹4.97 L | ₹23.2 k | ₹0 | 100% |
Top Bank Benchmarks for Home Loan (2026)
CIBIL 750+ gets lowest EBR rate
Women borrowers get 5 bps concession
Instant digital sanction available
Linked to Baroda Repo Linked Lending Rate
Fast track sanction for salaried MNC employees
How is loan EMI calculated in India and how can you reduce total interest?
Step-by-Step Guide: How to Get a Loan in India (2026)
Securing a loan at the most favorable interest rate from Indian banks or NBFCs follows a standardized 6-phase procedure:
Eligibility & FOIR Assessment
Calculate your take-home income and existing debt. Lenders ensure your total Fixed Obligation to Income Ratio (FOIR) stays under 40% to 50%.
Credit Score & Profile Check
Check your CIBIL score. A score of 750+ qualifies you for repo-rate linked lending (EBR/RLLR) with zero credit risk markups.
In-Principle Sanction Letter
Submit income proofs (Salary slips / ITR) to receive an in-principle approval outlining loan quantum, interest rate, and tenure.
Legal & Technical Valuation
For Home or LAP loans, bank lawyers verify 30-year chain deeds and empanelled engineers assess property structural valuation.
Loan Agreement & MODT Execution
Sign loan contract, set up e-NACH auto-debit, and register Memorandum of Deposit of Title Deeds (MODT) with state authorities.
Disbursement & Account Credit
Funds are disbursed directly to the builder/seller (for housing/auto) or credited directly to your bank account (personal/business).
Loan Eligibility & Mandatory Documents: Salaried vs. Self-Employed
Salaried Applicants Checklist
- Income Proof: Latest 3 to 6 months salary slips stamped by employer.
- Tax Returns: Form 16 (Part A & B) and ITR-V for the past 2 assessment years.
- Banking: Last 6 months salary account bank statement showing continuous salary credits.
- Employment Stability: Minimum 2 years of total work experience with at least 6 months in current organization.
- KYC: PAN Card, Aadhaar Card, Passport/Voter ID, and current residential address proof.
Self-Employed & Business Owners Checklist
- ITR & Computation: Last 2 to 3 years audited Income Tax Returns with Computation of Income.
- Financial Statements: Audited Balance Sheet and Profit & Loss (P&L) statement with CA audit report (Section 44AB).
- GST Returns: GSTR-3B and GSTR-1 filings for the trailing 12 months matching turnover.
- Current Account Banking: 12 months operative current account bank statement showing inward business turnover.
- Business Proof: Udyam Registration, GST Certificate, Shop & Establishment license, or Partnership deed/MOA.
CIBIL Score Master Guide: Ranges, Impact & How to Maintain 750+
Your credit score (generated by TransUnion CIBIL, Experian, Equifax, or CRIF High Mark) is a 3-digit numerical summary of your credit history ranging from 300 to 900:
Most banks reject applications outright. Only high-interest NBFCs or fintech apps may consider collateral.
Loans approved with risk markups (50–100 bps higher interest) and higher processing fees.
Qualifies for most public and private bank loans without extra collateral requirements.
Instant approvals, waived processing charges, and lowest Repo-Linked Lending Rates (RLLR).
5 Golden Habits to Maintain a 750+ CIBIL Score:
- Never exceed 30% Credit Utilization: If your credit card limit is ₹2 Lakhs, keep your total monthly statement under ₹60,000.
- Automate All EMI Repayments: Even a single 1-day late payment reported as DPD (Days Past Due) drops your score by 40–70 points.
- Maintain a Healthy Credit Mix: Balance secured loans (Home/Car loan) with unsecured credit cards.
- Avoid Frequent Hard Enquiries: Do not apply for multiple credit cards or personal loans within short intervals.
- Audit Credit Bureau Reports Annually: Verify no wrong loan accounts or fraudulent PAN inquiries are logged in your CIBIL file.
Hidden Bank Charges: What to Check Before Signing the Loan Agreement
Borrowers often look only at the headline interest rate, neglecting fine-print charges that add tens of thousands of rupees to borrowing costs:
0.25% to 2.0% of loan amount + 18% GST. Always negotiate a cap or festive waiver.
0.1% to 0.5% state government stamp duty on registering the mortgage deed with the sub-registrar.
₹450 to ₹650 per failed debit, plus your home bank's inward cheque bounce penalty.
2% per month (24% per annum) charged on the overdue installment amount until cleared.
₹1,000 to ₹5,000 charged by lenders upon loan closure to retrieve original deeds from central vaults.
₹100 to ₹250 levied per applicant/co-borrower during the initial file login process.
Frequently Asked Questions (Loan & EMI in India)
What is the difference between Flat Rate and Reducing Balance interest?
In a Flat Rate loan, interest is calculated on the entire original loan amount throughout the tenure, making the effective interest rate almost double the stated rate. In a Reducing Balance loan (standard for Indian banks), interest is charged strictly on the outstanding balance, so interest decreases every month as you repay principal.
Can I prepay my home loan without penalty in India?
Yes. Under Reserve Bank of India (RBI) notifications, all floating rate home loans sanctioned to individual borrowers carry zero prepayment or foreclosure penalty. You can make lump-sum payments of any amount at any time without fees.
How does a Top-Up loan work?
A Top-Up loan is an additional credit line offered on top of your existing Home Loan or Gold Loan. Because the bank already holds your property or collateral, top-up home loans are approved with minimal documentation at rates much lower than personal loans (typically 8.8% to 9.5%).
What is the maximum loan tenure allowed for home and car loans?
For Home Loans, major Indian banks allow tenures up to 30 years (or up to applicant age 60–70 at retirement). For new Car Loans, tenures range from 1 to 7 years (up to 8 years for select models). Personal loans are capped at 5 to 6 years.