Home Loan Calculator: How boosting EMI by 6.69% can help one save Rs 20 lakh in interest and 5 years in tenure on Rs 50 lakh loan

If you increase your EMI by 6.69 per cent on a Rs 50 lakh home loan, you can save nearly Rs 20 lakh in interest payments. Want to understand how? Explore how small adjustments reduce long-term costs effectively.

Anamika Singh | Nov 11, 2024, 04:37 PM IST

Small adjustments in your loan repayment strategy can do wonders. Suppose, you have a loan of Rs 50 lakh at 9.50 per cent interest rate for 25 years, if you increase your monthly EMI by just 6.69 per cent, you can save nearly Rs 20 lakh in interest payments. This minor change may not feel important initially, but it can make a substantial difference in the long term by reducing your overall interest burden. By opting for a slightly higher EMI, you can shorten the loan tenure and reduce the amount of interest accrued. Therefore, let’s break down how this strategy works and why it can be a smart financial move.

Photos source: Pixabay/Representational

(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning)

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Understanding home loans

Understanding home loans

Home loans help individual realise their financial dream of owning a home. These loans are provided by banks, financial institutions, and non-banking financial companies, and are repaid through EMIs. Since the home loans are taken for long durations such as 15 years or over, the borrower pays huge interest on them.

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Benefits of home loan

Benefits of home loan

Opportunity to own a home
Flexible repayment options
Tax benefits

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What will be your EMI on Rs 50 lakh loan for 25 years?

What will be your EMI on Rs 50 lakh loan for 25 years?

On a Rs 50 lakh loan for 25 years at a 9.50 interest rate, the estimated monthly EMI amount will be Rs 43,685.

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What will be your total interest on Rs 50 lakh loan in 25 years?

What will be your total interest on Rs 50 lakh loan in 25 years?

The estimated total interest in 25 years will be Rs 81,05,450 on a Rs 50 lakh loan. 

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What will be your total repayment amount on Rs 50 lakh loan in 25 years?

What will be your total repayment amount on Rs 50 lakh loan in 25 years?

The total estimated repayment amount will be Rs 1,31,05,450.

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What will be your EMI on Rs 50 lakh loan in 20 years?

What will be your EMI on Rs 50 lakh loan in 20 years?

On a Rs 50 lakh loan for 20 years at a 9.50 interest rate, the estimated monthly EMI will be Rs 46,607. 

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What will be your total interest on Rs 50 lakh loan in 20 years?

What will be your total interest on Rs 50 lakh loan in 20 years?

The total estimated interest in 20 years will be Rs 61,85,574 on Rs 50 lakh loan. 

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What will be your total repayment amount on Rs 50 lakh loan in 20 years?

What will be your total repayment amount on Rs 50 lakh loan in 20 years?

The total estimated repayment amount will be Rs 1,11,85,574. 

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How much money you will save?

How much money you will save?

The estimated amount saved because of an increase in EMI will be Rs 19,19,876.
On the other hand, the time saved will be 5 years.

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