Buying a house is a financial goal and to accomplish it, a home loan can come to your aid. A loan provides financial resource. With an Equated Monthly Instalment (EMI) facility, repayments become comfortable.
That said, before you avail of a home loan, as a prudent loan planning exercise, always assess how much the EMI will be. After all, availing a home loan is an important financial decision.
The EMI (or Equated Monthly Instalment)
of your loan consists of the principal portion and the interest. Therefore, EMI = principal amount + interest paid on the loan.
The EMI, usually, remains fixed for the entire tenure of your loan and it is to be repaid over the tenure of the loan on a monthly basis. During the initial years of your loan tenure, you pay more towards interest. Gradually, as you repay
the loan, a higher portion is adjusted towards the principal component. This is because EMIs are computed on a reducing balance method, which works in your favour as a borrower.
Remember, the interest rate and your loan tenure are the vital deciding factors for your loan EMI.
To know how much will the EMI be on your home loan, use Axis Bank's EMI calculator. Axis Bank’s Home loan EMI Calculator is an automatic
tool that makes loan planning easier for you.