Home Loan EMI Calculator: How you can save Rs 13.46 lakh and 3.5 years on Rs 60 lakh, 20-year loan
Home Loan Interest Calculator: Because of long duration, home loan borrower ends up paying higher interest than the principal amount. Borrowers set their equated monthly instalment as per their repayment capacity. According to that, they set their loan duration. E.g. if they want to keep it lower, they will take the loan for a long duration, but if they want to finish their loan in fewer years, they go for a higher EMI.
Home Loan Calculator: Home loans are large amounts and long durations. Because of long duration, the loan borrower ends up paying higher interest than the principal amount. Borrowers set their equated monthly instalment as per their repayment capacity. According to that, they set their loan duration. E.g. if they want to keep it lower, they will take the loan for a long duration, but if they want to finish their loan in fewer years, they go for a higher EMI. The disadvantage of choosing a longer duration and a higher EMI is that, the borrower pays higher interest. However, a good way to reduce interest can be to readjust your EMI with your increased income. In this write-up, we will show you how you can nearly save Rs 13.50 lakh in interest and nearly 3.6 years in duration on a Rs 60 lakh, 20-year loan.
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Home Loan Conditions
Here, we will see calculations of Rs 60 lakh home loan for 20 years at the rate of 9.50 per cent annual interest
What will be home loan EMI?
Given these conditions, the estimated home loan EMI will be Rs 55,928.
What will be home loan interest and repayment amounts?
The total estimated interest in 20 years will be Rs 74,22,689, and the estimated repayment amount will be Rs 1,34,22,689.
What home loan borrower needs to do
Here after 3 years of loan, they need to increase their EMI amount by 10 per cent (Rs 6,000) and keep it the same for the rest of the loan duration.
How it will impact their EMI?
The EMI will thus be increased to Rs 61,928.
What will be the new repayment amount?
The new estimated repayment amount will be Rs 1,20,76,652.
What will be the new loan duration?
The new duration will be 16 years and 7 months.
How much money will be saved on home loan?
On the interest Rs 13,46,037 will be saved.
Disclaimer
(Disclaimer: Our calculations are projections and are not investment advice. Do your due diligence or consult an advisor before financial planning.)