What your home loan EMI really depends on

Your EMI comes from three inputs: the amount you borrow, the interest rate, and the number of years.

The three levers

• Loan amount. The price minus your down payment. A larger down payment lowers every instalment and the interest you pay overall.
• Interest rate. Even a small difference in rate adds up over a long loan.
• Tenure. A longer loan has a smaller EMI, but you pay interest for more years.

A worked example

Borrow ₹60,00,000 at 8.5% for 20 years and the EMI is about ₹52,000. Stretch it to 25 years and the EMI drops to about ₹48,000, but you pay roughly ₹10 lakh more in interest across the loan.

Use the EMI calculator on any project page to try your own numbers.

Keep in mind

• Lenders usually prefer that all your EMIs together stay within a share of your income. Ask your bank for its limit.
• Rates change. Check the current rate and whether it is fixed or floating.
• Budget for registration, stamp duty and furnishing as well. They are not part of the loan.