If you increase your EMI by just 3.90%, you can save Rs 28 lakh on Rs 70 lakh loan; see calculations
If you increase your monthly EMI by just 6.69 per cent on a Rs 70 lakh home loan, you could save nearly Rs 28 lakh in interest payments. Wondering how it works? Let’s understand how small changes in your EMI can help you save big in the long run.
Small changes in how you repay your loan can make a big difference. For example, if you take a loan of Rs 70 lakh at a 9.50% interest rate for 30 years, increasing your monthly EMI by just 3.90 per cent can save you almost Rs 28 lakh in interest. While this small increase might not seem like much, it can greatly reduce the interest you pay. By choosing a slightly higher EMI, you can pay off the loan faster and save a lot of money in the long run. Let’s find out how this works and why it’s a smart way to manage your finances.
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(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
What is home loan?
Home loans make it possible for people to fulfill their dream of owning a house. These loans are offered by banks, financial institutions, and non-banking companies and are repaid through monthly EMIs.
What are benefits of home loans?
Makes buying a home affordable
Tax benefits
Flexible repayment
Home loan: Calculation
We are calculating a Rs 70 lakh home loan at a 9.5 per cent interest rate for 30 years.
What will be your EMI on Rs 70 lakh loan for 30 years?
On a Rs 70 lakh loan for 30 years at a 9.50 interest rate, the estimated monthly EMI amount will be Rs 58,860.
What will be your total interest on Rs 70 lakh loan in 30 years?
The estimated total interest in 30 years will be Rs 1,41,89,526 on a Rs 70 lakh loan.
What will be your total repayment amount on Rs 70 lakh loan in 30 years?
The total estimated repayment amount will be Rs 2,11,89,526.
What will be your EMI on Rs 70 lakh loan in 25 years?
On a Rs 70 lakh loan for 25 years at a 9.50 interest rate, the estimated monthly EMI will be Rs 61,159.
What will be your total interest on Rs 70 lakh loan in 25 years?
The total estimated interest in 25 years will be Rs 1,13,47,630 on Rs 70 lakh loan.
What will be your total repayment amount on Rs 70 lakh loan in 25 years?
The total estimated repayment amount will be Rs 1,83,47,630.
How much money you will save?
The estimated amount saved because of an increase in EMI will be Rs 28,41,896.
On the other hand, the time saved will be 5 years.